A Pep store in Balfour Mall in Johannesburg. Picture: BLOOMBERG/WALDO SWIEGERS
A Pep store in Balfour Mall in Johannesburg. Picture: BLOOMBERG/WALDO SWIEGERS

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.

gernetzkyk@businesslive.co.za

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