Pepkor says coronavirus will likely lead to stock shortages
The group expects supply chain disruptions as a result of the coronavirus during its six months to end-September
SA’s largest non-grocery retailer Pepkor expects temporary shortages of some products during its second half to end-September, due to the coronavirus outbreak resulting in factory closures in China.
The group — which has brands that include Pep, Ackermans, Incredible Connection and Timbercity — said on Wednesday that long lead times in sourcing stocks could allow its buying teams to respond, and is optimistic about customer service levels being largely maintained, despite interruptions to product availability.
In an update by CEO Leon Lourens at the group’s AGM, Pepkor said Pep and Ackermans achieved double-digit sales growth in January, though trading had weakened in February.
Trading in both JD Group and The Building Company was weaker during January and February in context of the continued, challenging trading environment for durable and building material products, the group said.
High unit prices and the challenges in the construction industry continue to affect the businesses in these divisions.
In afternoon trade on Wednesday, Pepkor’s share price was up 0.87% to R15.05, having fallen about 24% over the past 12 months.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.