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

[Beyond.Celsus]

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

Was wondering the same thing


Are they really doing this well, or are they basing it on what they are owed?

 

[TheChamp]

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.

Nazoke!

 

[Polymathic]

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

Maybe making money of interest but I'm pretty sure PnP was crying doom and gloom for the last 5 years, they start offering credit and just a year later suddenly profits are "soaring".

 

[Arthur]

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.

You couldn't be more wrong.

PnP trading margin is 2.8%, up from 2.5% last HY. These large, efficient retailers are one of the greatest boons we have in our society. They're superb at distribution. They're outstanding at cash management. Open your eyes.

 

[GhostSixFour]

You couldn't be more wrong.

PnP trading margin is 2.8%, up from 2.5% last HY. These large, efficient retailers are one of the greatest boons we have in our society. They're superb at distribution. They're outstanding at cash management. Open your eyes.

So you've then seen reductions when the variables that get used to increase prices change again in the opposite direction?

 

[surface]

Maybe making money of interest but I'm pretty sure PnP was crying doom and gloom for the last 5 years, they start offering credit and just a year later suddenly profits are "soaring".

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

This was introduced in 2017, right?

Pick n Pay launches Smart Shopper credit facility | Citypress

Pick n Pay is launching a credit facility that can be accessed through your existing Smart Shopper card, which gives you up to 55 days to pay back the money you borrow before the interest (21%) kicks in.

city-press.news24.com

Is this same pick n pay?

Five-year review | OUR PERFORMANCE | Pick n Pay Integrated Annual 2018

Pick n Pay Integrated Annual 2018 - Five-year review, online report developed by Bastion

picknpayinvestor.co.za

 

[Mike Hoxbig]

I noticed that when walking past a PnP in a mall (doesn't matter which mall) there's usually some weird stench emanating from it...

 

[skimread]

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

SAs population is dramatically increasing with its open borders and millions of foreigners.
Everyone needs food and large stores are the cheapest

 

[skimread]

I noticed that when walking past a PnP in a mall (doesn't matter which mall) there's usually some weird stench emanating from it...

The thing in common is you.

That means you stink.

 

[Mike Hoxbig]

The thing in common is you.

That means you stink.

Maybe. Strange that it only happens outside a PnP though...

 

[Arthur]

So you've then seen reductions when the variables that get used to increase prices change again in the opposite direction?

You're making unwarranted assumptions about variables that affect price changes. The main culprit is your government diluting your currency. PnP and other large retailers operate on margins lower than the inflation rate. Luckily they're super-efficient in managing cash and suppliers, and we consumers benefit enormously.

 

[ShaunSA]

I noticed that when walking past a PnP in a mall (doesn't matter which mall) there's usually some weird stench emanating from it...

Try walking into the Richard's Bay "Superspar"

 

[GhostSixFour]

You're making unwarranted assumptions about variables that affect price changes. The main culprit is your government diluting your currency. PnP and other large retailers operate on margins lower than the inflation rate. Luckily they're super-efficient in managing cash and suppliers, and we consumers benefit enormously.

Is it unwarranted when the pricing goes up and they blame the fuel price increases?

Price war 2018: Woolworths vs Pick n Pay vs Spar vs Checkers

From the start of April, the VAT has increased to 15%, impacting not only on shelf prices, but every step along the value chain in bringing goods to your favourite store.

businesstech.co.za

These taxes include (but are not limited to) the fuel levies – where freight costs may be passed on to consumers – as well as the ‘health promotion’ levy, which for now is only the sugar tax.

So if they increase, when the fuel price goes up, have they decreased when it goes down?

What about the pricing of sugery items going up when the sugar tax got implemented, then they changed the recipes -cause everything tastes like crap now-and the prices stayed the same.

 

[Urist]

Was wondering the same thing


Are they really doing this well, or are they basing it on what they are owed?

hmmm... that is some risky credit, I doubt the people that bank at PnP are the most creditworthy.

 

[surface]

I noticed that when walking past a PnP in a mall (doesn't matter which mall) there's usually some weird stench emanating from it...

Perhaps I need to visit ENT. Where in the world do you live dude?

 

[Hemi300c]

I noticed that when walking past a PnP in a mall (doesn't matter which mall) there's usually some weird stench emanating from it...

Agreed
Normally the stench eminates from the fish, meat or chicken sections.

I prefer Checkers

 

[Hemps]

Agreed
Normally the stench eminates from the fish, meat or chicken sections.

I prefer Checkers

All checkers meat sections seem to smell to me, I'll never buy meat from them again.
Last time I bought mince sealed, left it in a checkers packet also sealed with tight knot in my garage on Friday afternoon.
Found it on Sunday covered in maggots on the mince, the maggots where inside the packaging and it was completely sealed.
Still can't understand how they got there.

 

[Toxxyc]

In my area, Checkers have by far the best meat from all the supermarkets in the area.

 

[namzsteve]

Agreed
Normally the stench eminates from the fish, meat or chicken sections.

I prefer Checkers

Checkers any day!

 

[^^vampire^^]

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.

Interesting insights. I've always just thought of PnPs being there and they always seem to do farely well or never close (Jhb Westrand). I always think of the PnP in Flora Centre in Roodepoort - my parents always used to go there to do the monthly shop for like 30+ years until we moved. You're right about it always looking the same. I literally can't remember them even moving anything in the isles around until they did that refresh a 6 or so years ago.