Pick n Pay saw sales surge in first quarter

South African based retailer Pick n Pay Stores Limited, the parent company to TM Pick n Pay Zimbabwe recorded a 10,7 percent increase in sales for the 18 weeks ended July 3, 2022.

According to the Group’s latest trading update, the Group’s South African segment grew sales by 10,5 percent, with like-for-like sales growth of 8,3 percent.

South African internal selling price inflation for the period was restricted to 5,0 percent, below 7,1 percent CPI Food.

This resulted in the Group’s rest of Africa segment revenue scaling up by 18,9 percent and by 9,5 percent on a constant currency basis.

This comes as TM Supermarkets (TM), the Group’s 49 percent-owned associate in Zimbabwe, delivered another resilient sales and earnings performance in the full year to February 2022.

Sustained market share gains drove underlying volume growth up 23,5 percent year-on-year, supported by the successful refurbishments of our Newlands, Zengeza and Makoni stores.

Earnings in local currency grew 95,8 percent year-on-year, as the management team countered inflationary cost pressures with highly-disciplined cost and working capital management.

The local Zimbabwe dollar weakened significantly over the second half of the year and, as a result, the Group’s share of TM’s operating profits fell to R96,7 million, from R109,2 million last year, on translation to the South African rand.

The Group recognised a non-cash net monetary loss on the revaluation of TM assets and liabilities of R25,1 million (FY21: R29,2 million) under the provisions of hyperinflation accounting in Zimbabwe, which is excluded from pro forma headline earnings per share, the Group’s main dividend driver.

This comes as TM Pick n Pay celebrated a decade since its first Pick n Pay store opened doors in Kamfinsa on June 19, 2012.

Cementing the milestone, the group opened the 30th Pick n Pay branded store on June 30, 2022, a testament of hard work, dedication, and commitment to the communities they operate in.

Pick n Pay has stores across the nation including Harare, Bulawayo, Chivhu, Chiredzi, Vic Falls, and Zvishavane. Their nationwide footprint has served many communities and impacted them positively.-ebusinessweekly