Refurbishing disrupts Pick n Pay’s revenue growth
By Robert Laing - Apr 19th 2017, 10:00
Retailer says profit grew faster than sales despite restricting its selling price inflation to 6.1% for the year, well below published food inflation of 11%.
Pick n Pay blamed its revenue growth of 7% to R79bn on "disruption to trade" due to refurbishing 62 stores and closing 12 underperformers during the 52 weeks to February 26.
After tax profit grew a more impressive 17% to R1.2bn, and the grocery chain declared a final dividend of 146.4c, taking the total for the year to 176.3c, an 18% increase on the previous year’s 149.4c.
Pick n Pay managed to grow profit faster than sales despite restricting its selling price inflation to 6.1% for the year, well below published food inflation of 11%, CEO Richard Brasher said in the results statement released on Wednesday morning.
Franchise fee income grew 10.5% to R349.8m, reflecting the 70 new franchise stores opened during its financial year. These included 32 Pick n Pay Express stores on BP forecourts. There were now 111 Pick n Pay Express stores, more than double the number of two years ago, Brasher said.
The group opened 68 new Pick n Pay company-owned stores and 25 new Boxer stores across all formats over the year, including 14 Pick n Pay local convenience stores. New stores contributed 3.6% to turnover growth.
The group added 24 clothing stores and 46 liquor stores in its 2017 financial year.
"The Pick n Pay clothing business again delivered strong double-digit growth, as customers sought long-lasting quality at great value. The group’s liquor business grew 15%, with solid market share growth across a number of key lines," the company said.
Pick n Pay opened 12 new supermarkets outside SA during the year, three in Namibia, six in Zambia, one in Zimbabwe and two in Botswana. The group plans to open its first stores in Ghana and Nigeria over the next two years.
"The group’s core South African operations delivered growth in profit before tax and capital items of 20%, with tough trading conditions in Zambia constraining growth in the rest of Africa division," the company said.
Pick n Pay’s loyalty programme grew to 7-million active members. Brasher said this translated to 20 swipes at tills every second.
Its Smart Shopper programme had been altered to offer weekly personalised discounts tailored specifically to each customer on the basis of their actual shopping habits, the company said.
© BusinessLIVE MMXVII
Hyde Park Corner celebrates 50 fabulous years with customers
14/10/2019 - 15:20
Hyde Park Corner is celebrating its golden anniversary with '50 & Fabulous’ celebrations that include exciting events, lucky draws, prizes, special offers, opportunities to give back, milestone exhibits and a whole lot more in October and November.
Retail apocalypse narrative might be over-exaggerated
14/10/2019 - 13:55
There are two sectors on the JSE that have fallen out of favour - Property and Retail.
Christmas is coming: 3 ways retailers can ensure a more profitable festive season
14/10/2019 - 10:29
According to Stats SA, retail figures for December 2018, showed an annual decline of 1.4% instead of the expected 2.1% growth. It seems like brick-and-mortar stores are battling against depleting footfalls and decaying consumer confidence.
Big Black Friday plans for Dion Wired, Builders and Game in 2019
11/10/2019 - 11:11
Black Friday has grown to be an incredibly important ‘shopping holiday’ for South African retailers with Game and Builders reporting a 24% and 33% sales increase over the period in 2018.
Temporary employment services offer a dynamic staffing solution to help the retail sector cater for the seasonal peak
10/10/2019 - 14:56
As we head into the final stretch of the year it is time to start gearing up for the added demands of the summer season. From factories and warehouses to retail outlets, the entire retail chain is under added pressure during this seasonal time of high demand. Temporary employment services (TES) can help all areas of the retail sector to cater to this peak with additional and flexi staff exactly when and where they are needed, with the right skills for the job, and none of the administrative headache of hiring permanent or contract staff.