Pick n Pay growth slow but sure in tough market
For a retailer on the road to recovery, treating old wounds in a low-growth environment has proved to be difficult
For a retailer on the road to recovery, treating old wounds in a low-growth environment has proved to be difficult. But with an expected increase of 15%-20% in full-year earnings, Pick n Pay's turnaround strategy seems to be gaining traction, although industry pundits are wondering: is it enough? This week Pick n Pay's trading update showed that basic earnings a share were expected to rise to between 251.98c and 262.93c, while the diluted basic earnings a share would rise to between 247.31c and 258.06c. Investec analyst Unathi Loos said the recovery at Pick n Pay was going to be a mellowed one, but more sustainable. "There will be no short cuts as there is no weak competition to undercut," she said. Although Loos said the market consensus for Pick n Pay was looking for about 8% top-line growth in the last results, these came in at 7%, "which was slightly below expectations". "I don't think that the recovery will be as exciting as what it could've been if it hadn't been for the stren...
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