Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

South Africa's Pick n Pay H1 Profit Jumps 19% As Price Cuts Lure Buyers

South African supermarket chain Pick n Pay Stores has said that half-year profit before tax jumped 19.1%, as price cuts attracted more shoppers to its stores.

The country's second-biggest grocery store chain reported profit before tax of 670.2 million rand (€40.4 million) for the six months ended August, compared with 562.8 million rand (€34.31 million) in the same period last year, on a normalised basis.

South African shoppers are feeling the impact of low growth in disposable income, little to no job creation, and tight credit conditions.

To keep attracting struggling consumers, Pick n Pay reduced prices across 2,500 everyday grocery lines.

Customer Investment

"We have invested heavily in our customers, just when they need it most," chief executive Richard Brasher said in a statement.

"We've reduced prices of key grocery lines, delivered a more compelling fresh-meat and -produce offer, and given our customers simpler and more personalised promotions," added Brasher.

Like-for-like sales climbed 3.8% – more than double the previous half-year's growth. Total sales rose to 41.2 billion rand (€2.51 billion) – up 6.4%.

A voluntary redundancy programme to cut costs and create a leaner group also helped its performance.

Normalised headline earnings per share climbed 17%, to 100.18 cents, the retailer said.

It declared an interim dividend of 39.10 cents per share, up 17.1%.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days