'Shot on the nose' - Pick n Pay's shares slide with signs Shoprite is eating its lunch

Pick n Pay’s shares plunged more than 6% on Wednesday, after it released an update indicating that sales in real terms are sliding backwards as a tough trading environment squeezes profits, while load shedding is costing it about R60 million a month.  

While some bright spots were on offer in its update, including strong growth of the retailer’s Boxer chain and its clothing division, this was not enough to quell market jitters. Its shares fell 6.49% in afternoon trade to R48.90, putting them at an almost one-year low.

The group said it had recently had to deal with a "significantly more difficult trading environment with unprecedented load shedding and a further downturn in the economy".