retail
Pick n Pay caps six years of hard work with upturn
Pick n Pay capped a six-year turnaround with its best performance in a decade, allowing it to stand out in a sector otherwise battered by a depressed economy and weak consumer demand. Under the leadership of former Tesco UK boss Richard Brasher, who joined in 2013, the company has moved to improve distribution, sell more own-brand products and boost customer activity through its Smart Shopper loyalty programme. Investment in its discount chain, Boxer, has also paid off, it said. Boxer is helping it to make inroads in the lower end of the market, a segment that has been traditionally dominated by Shoprite, which has been struggling. Pick n Pay, SA’s second-largest grocer by market capitalisation, increased profit after tax 20% to R1.64bn in the year to March, and boosted its dividend 22% to R2.31 a share. In February, Shoprite announced a 24% cut in its interim payout. Pick n Pay’s share price was down 1.8% on Friday at R69, cutting its gain in 2019 so far to 1.8%, compared with an ...
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