Pick n Pay has said it will increase its focus on promotional activity and its own label offer after reporting a weak set of results for its last fiscal year.
For the year ending 26 February 2017, revenue rose by just 7% year-on-year to 79bn rand, while net profit rose by 17% to 1.2bn. The group said the profit rise was particularly impressive given selling price inflation to 6.1% for the year, well below published food inflation of 11%.
During the year, the group opened 70 new franchise and 93 company-owned grocery stores (68 Pick n Pay, 25 Boxer), as well as 24 clothing stores and 46 liquor stores. It opened 12 new supermarkets internationally – six in Zambia, three in Namibia, two in Botswana, and one in Zimbabwe.
CEO Richard Brasher said the group will focus more on improving its promotions and loyalty programme, while also investing in own labels. He noted: “We need to make sure that we have good competition on our shelves and that the Pick n Pay brand stands for fantastic value”.