- South African segment sales grew by 10.5%
- Revenue went up by 18.9%
- The Group upgraded 10 stores to the new Ekuseni customer value proposition
Harare- JSE-listed retail outlet Pick n Pay Stores Limited, the parent company to TM Pick n Pay Zimbabwe has recorded a 10.7% increase in sales for the 18 weeks ended 3 July 2022.
According to the Group’s latest trading update, the Group’s South African segment grew sales by 10.5%, with like-for-like sales growth of 8.3%. South African internal selling price inflation for the period was restricted to 5.0%, below 7.1% CPI Food.
This resulted in the Group’s rest of Africa segment revenue scaling up by 18.9% and by 9.5% on a constant currency basis.
“The FY22 sales base for the period (first 18 weeks of FY22) was unaffected by the July 2021 civil unrest, which began on 9 July 2021. However, the FY22 base period did include the loss of 18 days of liquor trading due to Covid-19 trading restrictions,” the Group said in a statement accompanying the trading update.
Group’s liquor sales for the period increased by 17.2% year-on-year, supported by the annualisation of a full liquor lockdown in week 18 of the base period while liquor sales growth for the first 17 weeks of FY23 registered at 9.6%, providing a better indication of the underlying liquor sales trend.
The clothing division delivered another strong performance, with sales increasing 17.1% on a year-on-year basis while total Online sales for the period, including scheduled delivery, click and collect, and asap! our on-demand online service, grew by 97.3%.
Regarding the Ekuseni Strategic Plan, the Group upgraded 10 stores to the new Ekuseni customer value proposition (CVP) including 6 in the Project Red format, with exceptionally encouraging initial results while weekly sales of the initial 5 pilot CVP stores grew by 18% on average since launch, excluding the first 3 weeks of trading post the upgrades where sales growth was considerably higher but supported by re-launch promotional activity.
“Sales growth was driven by increases in both traffic and basket size, and growth in the identified Power Categories of each format has been particularly pleasing,” the Group said.
“The Group is continuing to achieve ongoing supply chain efficiencies, and Pick n Pay’s new Eastport DC is on track to open in March 2023 while discussions with unions are progressing on delivering a more flexible and productive workforce which can better serve customers.”
Net Promoter Score (NPS) of the upgraded stores has improved by more than 25% on average in the 6 weeks since launch while Ekuseni is targeting 20% growth in the NPS score across Pick n Pay company-owned supermarkets over the term of the plan.
“The Group is making good progress on its target to improve efficiency and reduce costs by R3 billion over the next three years and among the key elements in delivering this plan, the Group has now announced the closure of its Kensington campus in Johannesburg by December 2023 as part of its move to a more flexible and cost-effective support office.”
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