INVESTORS in Pick n Pay sent the company’s share price climbing as much as 3% in intraday trade on Friday, on a day when most food retailers made marginal gains, after releasing a trading statement that defied the constrained local consumer environment.Consumer confidence has been wallowing in negative territory in 2016. The FNB/BER Index showed that consumer confidence levels of high-income shoppers (earning more than R7,000 per month on the index’s scale) improved from -10 to -6 index points, but confidence in low-income consumers (earning less than R7,000) plunged from -8 to -15 index points in the second quarter of 2016.Pick n Pay has exposure to both ends of the market. Food inflation has also eroded purchasing power.The retailer said it expected a rise in headline earnings per share of between 20% and 25% for the 26 weeks to end-August from headline earnings per share of 66.62c a year ago.Pick n Pay said the results were underpinned by stronger operational and financial discip...
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