Pick n Pay to open 63 new stores as profits in South Africa soar

[surface]

Pick n Pay to open 63 new stores as profits in South Africa soar

There’s still plenty of opportunities to expand within South Africa, says Pick n Pay CEO Richard Brasher.

www.702.co.za

 

[surface]

I wonder what Richard Brasher got from ANC. /s

 

[TheChamp]

Lew will be here shortly to explain how dom the PnP management are to invest even more in SA.

 

[Flanders]

No doubt their profits are soaring, but 63 new stores? Damn.

 

[Excalibur]

You won't find Marine and his minions in this kind of thread.

 

[^^vampire^^]

Hasn't PnP always been doing well? I don't think I've ever come a cross one that opens then ever closes. Sure they get competition from Checkers but they are quite the staple.

 

[R13...]

Hasn't PnP always been doing well? I don't think I've ever come a cross one that opens then ever closes. Sure they get competition from Checkers but they are quite the staple.

They went through a bad patch a while ago.

 

[krycor]

Hasn't PnP always been doing well? I don't think I've ever come across one that opens then ever closes. Sure they get competition from Checkers but they are quite the staple.

Nope..

So they went thru some stagnation & inefficiencies while Shoprite perfected their supply chain and expansion into Africa.

Over the last 3-4yrs they focused on fixing those things and then also experimented with different formats (BP? Garage store, Boxer stores) both of which have been very good in expanding their presence and profitable too.

Now they currently redoing their expansion in Africa, I guess taking heed of past failures and it seems to be going ok..

Re-store closures.. the stores that I know of have always been there.. but the store refresh recently was likely the 1st I’ve seen done across all since Raymond Ackerman was involved? 2ndly if you evaluating PnP based on their Cpt/Wc presence then you looking at them wrong as that’s their core market? Much like most retailers, I suspect because they based there and Cpt is small..

I wonder if I can find a store density & distribution map/graph.

Re-competition.. landscape is changing fast. Shoprite was the lower end competitor but they now vying for middle class too albeit Checkers brand was for this and upper. Shoprite now also re-introduced? Store loyalty program (FNB customers will be big initial winners).

Reason I am not a fan of Shoprite/Checkers is that the shopping experience is very inconsistent.. some stores are awesome, others suck..PnP I’ve found is a bit more consistent across the brand which I suspect makes them successful. Woolworths has best consistency in this regard btw.

 

[GhostSixFour]

It also helps that the retailers are screwing us at every turn. When have they ever dropped their prices when the fuel price comes down, but they increase each time it goes up. Etc etc.

 

[NeonNinja]

No doubt their profits are soaring, but 63 new stores? Damn.

Maybe that includes the mini in the garages.

 

[FaSMaN]

Well food prices have skyrocketed over the last decade , even if not everything that's increased actually went up in price(inflation, transport, storage costs) so that extra money must go somewhere

 

[wbot]

We have 2 PnPs nearby, one of which is a massive Hypermarket. The smaller PnP though is pathetic. Wish they would improve some of their existing stores before opening 63 new ones.

We also have 2 Checkers nearby. I prefer to do my shopping at Checkers tbh although PnP Hyper does seem to have a lot more variety and stuff I can't find at Checkers.

 

[surface]

We have 2 PnPs nearby, one of which is a massive Hypermarket. The smaller PnP though is pathetic. Wish they would improve some of their existing stores before opening 63 new ones.

Have you ever talked to the manager there? I have found that if one has a decent conversation, things generally improve. I mean from your remark, I don't understand what you mean so not likely that they will know. For example, are there no products on shelves? Are cashiers slow? Is food bad quality? Is there mess in the store during daytime? etc..

 

[Jopie Fourie]

Instead of opening new branches, they should have focused on improving and expanding on their existing branches. Bad management decisions in a bad economy. They will pay the price.

 

[The_Mowgs]

Instead of opening new branches, they should have focused on improving and expanding on their existing branches. Bad management decisions in a bad economy. They will pay the price.

Exactly! Look at what their bad decisions did to their profits.

 

[Jopie Fourie]

Exactly! Look at what their bad decisions did to their profits.

Yeah, no, look. You do not simply see a 6% increase in profit and then decide to open 60+ new stores. Does not really make business sense. The expenses and capital layout required to open these stores will wipe out any profits they made and considering the current market conditions, this is a massive gamble - even more so the 80% drop in profits in their other African operations.

 

[ForceFate]

Instead of opening new branches, they should have focused on improving and expanding on their existing branches. Bad management decisions in a bad economy. They will pay the price.

Why expand in areas where there's no growth? Why not try to penetrate underserved markets? BTW, my local PnP was renovated and expanded recently. Expansion of stores doesn't make national news.

 

[wbot]

Have you ever talked to the manager there? I have found that if one has a decent conversation, things generally improve. I mean from your remark, I don't understand what you mean so not likely that they will know. For example, are there no products on shelves? Are cashiers slow? Is food bad quality? Is there mess in the store during daytime? etc..

Nah it's not that big of a deal that I need to have a chat with the manager. Plenty of other (better) supermarkets nearby.

Just 'pathetic' compared to most other stores. It's about stock/availability and freshness. If I make a grocery list for example chances are I won't find half of the items on that list, including some very basics. It's almost as if they get all the leftovers that the nearby PnP Hyper doesn't need.

They're not as bad as OK though.

 

[Toxxyc]

PnP: Introduces PnP Credit.
...?
PnP: Profit.

 

[TheChamp]

We have 2 PnPs nearby, one of which is a massive Hypermarket. The smaller PnP though is pathetic. Wish they would improve some of their existing stores before opening 63 new ones.

We also have 2 Checkers nearby. I prefer to do my shopping at Checkers tbh although PnP Hyper does seem to have a lot more variety and stuff I can't find at Checkers.

My local smaller PnP is an absolute joy, plus it closes at 8pm Monday to Sunday.