SOUTH AFRICA – Pick n Pay, second largest retailer in South Africa has reported 9.6% growth in its annual turnover for the financial year to the end of March 2019 despite declining consumer spending which has affected retailers in the country.
According to a report by Business Report, the retailer said in a recent trading update that its core South Africa division delivered comparable turnover growth by 7.4% while its aggregate growth in annual turnover climbed up from 7.1% posted in the same period last year.
“This achievement, in a very challenging trading environment, underlines the effective and consistent execution of the group’s long-term plan.
“Over the past six years, a strong focus on improving cost and operational effectiveness has enabled the group to invest in a winning customer offer through lower prices, more attractive promotions, better and more innovative products, compelling value-added services and brighter and more modern stores,” the company said.
However, the company highlighted a difficult consumer environment in South Africa and some challenges elsewhere – in particular, a testing economy in Zambia and currency uncertainty and disruption in Zimbabwe.
The retailer is expected to record improved performance and maintain the growth momentum on earnings and despite the challenging background.
Pick n Pay approves further expansion in Zimbabwe
Pick n Pay and its joint venture partner in Zimbabwe, TM Supermarkets, has approved an expansion programme in the country as it seeks to grow its market share ahead of its competitors in the country.
Despite the waning consumer spending power and disturbances to operations in the past few months, Malcom Mycroft managing director TM Pick n Pay chain said that the retailer will continue investing in Zimbabwe as the brand continued to record growth in the country.
In addition to revamping and
The retailer targets to increase the number of the stores to 60 in the near foreseeable future with Mycroft adding that “Our expansion plan has already been approved by the board.”
The retail giant growth strategy seeks to cement its position in the sector ahead of its major rivals which include the Zimbabwe Stock Exchange-listed OK Zimbabwe Choppies and Spar.