- Pick n Pay has said that it will be adding more liquor and clothing stores to its stable to further its reach.
- Both alcohol and clothing sales had been impacted by the Covid-19 restrictions, the retailer said in its results
- It also committed to purchasing at least 25 million bottles of SA wine to support the local industry
Retailer Pick n Pay has said that it will be adding more liquor and clothing stores to its stable to further its reach.
On Wednesday, the retailer released its results for the 52 weeks ended 28 February, in which it mentioned that alcohol and clothing sales had been severely impacted by Covid-19 induced trade restrictions.
The group lost 209 liquor trading days over the year and reported 31% negative growth for the group's liquor and tobacco sales.
To remedy this, the group said it had added 35 new liquor stores during the year and plans to add 40 more over the 2022 financial year.
"To assist recovery of the local wine industry, Pick n Pay has committed to the purchase of at least 25 million bottles of South African wine this year and will work closely with farmers to grow their sales through the launch of new ranges, strong promotions and more dedicated shelf space," said the group.
According to Pick n Pay, clothing sales were severely impacted by trading restrictions in the first half of the year. Pick n Pay's clothing sales increased 1.3% year-on-year.
The group increased local sourcing close to 40% year-on-year to mitigate Covid-19 supply chain disruption, reduce order lead times and improve availability.
"The group added 22 clothing stores during the year and will continue to expand its reach through targeted investment in stand-alone clothing stores, additional space in supermarkets, and a growing online offer." The group plans to add a further 30 new clothing stores in the 2022 financial year.
Group turnover increased 4.3% year-on-year to R93.1 billion, while the group delivered a sales growth of 10% in core food and groceries in South Africa
Headline earnings per share decreased by 21.4% to 229.31 cents per share.
The group's "rest of Africa" segment contributed R4.3 billion of segmental revenue, down 8.6% on last year. This includes operations in Botswana, Lesotho, Namibia and Swaziland and Zambia.
The group said the board owes a significant debt of gratitude to outgoing CEO Richard Brasher for his leadership over an eight-year tenure, and in particular for his commitment this year, when he delayed to steering the business through the Covid-19 crisis.
"The board expresses its sincere thanks to Richard for his invaluable contribution and wishes him well in his retirement."
"This is my last set of results before I retire. It has been a real privilege to lead the group for the past eight years. My legacy is to leave the business stronger than I found it - equipped to win in the years to come. I want to thank the chairman, the Ackerman family and the board for their unstinting support," Brasher said in a statement.
Brasher also announced the launch of PicknPay.com, an online platform where customers will be able to shop seamlessly with Pick n Pay anytime.
"My very best wishes to Pieter Boone, who takes over from me today. He is an exceptional retailer and well-positioned to take the company into the future with confidence," said Brasher.