COMPANY COMMENT
Pick n Pay is on the rise and ready for battle
The retailer may not be leading the sector, but a successful turnaround strategy has made it a worthy competitor
For the better part of a decade Pick n Pay had been playing second fiddle to the likes of Shoprite and Spar. This year it caught up, producing strong results for the year to end-March in a difficult economy. This turnaround, which had been six years in the making, was sparked by former Tesco CEO Richard Brasher taking charge in 2013. During his tenure he’s introduced major changes like improving the efficiencies of its supply chain. Under Brasher, the Pick n Pay loyalty programme, Smart Shopper, has gained traction with customers increasingly choosing to visit its stores.The retailer has also made strides in cutting its overheads. In the 2017 financial year for instance, it reduced its head count by 3,000 people by offering staff severance packages.The group has done well to get a better performance out of its operations, but it still has a long way to go catch up with its major rival, Shoprite.Shoprite has had a horrid 18 months but looking at its trading profit margin of 4.4%, ...
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