Pick n Pay Working the numbers
Pick n Pay reported a slight increase of 33.7% in market share, made up presumably of punters for whom the whole supermarket/lifestyle question is somewhat academic. Turnover was up 9.8% to R54.7billion, but trading profit was down 2.5% to R1.653billion, with margin sliding 0.4% to 3% – a result, suggested Mr Badminton, of Pick n Pay not using food deflation to recover margin, but continuing to pass savings on to shoppers. On the upside, and there is a bit of that, private label grew 15%, or 26% in packaged foods, and now accounts for 15% of value sales in food. The Group also reported 17% growth in Fresh, an area in which, as you know, everyone wants to win. On the down-under side, Franklins profits did not wax neither did they wane for the year, flat lining in rand terms at a time of rand strength. Again on the upside, great achievements on the supply chain efficiency front where, thanks in part to Longmeadow, the Friendly Giant, cost per case was down 15%.
Comment: Solid foundations, or so we hope, for growth when the old silver lining appears along the storm-tattered edges of our economy.