food retail
Pick n Pay: turnaround story of the decade
After six years as CEO, Richard Brasher can say the turnaround is working. But can Pick n Pay take the next step?
Investors seem to think it’s the retail turnaround story of the decade. But while it’s indisputable that CEO Richard Brasher has finally steered Pick n Pay out of the financial wilderness, the holy grail of fatter profit margins still remains elusive. Last week, the 52-year-old retailer unveiled its best annual results in a decade, as its pretax profit grew 24.4%. This is part of the reason why, amid something of a meltdown in retail over the past year, Pick n Pay’s share price has slid only 13.9%, compared with rivals like Shoprite (down 28.6%) and Woolworths (down 25%). The problem is, Pick n Pay’s trading margin of 2.4% is still nowhere close to that of Shoprite which, in one of its worst trading periods in years, still produced a profit margin of 4.4%. But Brasher, an Englishman who joined in 2013 when margins were as low as 0.5%, says it’s unfair to draw direct comparisons between Pick n Pay and Shoprite, which has a higher-margin furniture business and fewer franchises. (Of Pi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.