Shoprite's IT system struggles contribute to biggest drop in share price since 1999

Bradley Prior

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#1
Shoprite's IT system struggles contribute to biggest drop in share price since 1999

Shoprite Holdings Ltd. shares slumped the most since 1999 after Africa’s biggest grocer said first-half earnings dropped as much as 26 percent, with South African food deflation and IT troubles compounding weakness in the rest of the continent.

Headline earnings per share declined between 16 percent and 26 percent to as little as 3.89 rand, the Cape Town-based supermarket operator said in a statement after the market closed on Tuesday. [Bloomberg]
 

Geoff.D

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#2
Okay, I am going to fall for this one. How on earth are we supposed to make sense of this headline? Please explain what the headline means. If you want to publish an article on the Company's performance, say so in the headline, iso, plucking a badly worded reason out of thin air to trigger clicks. Sorry, this article just does not get on my read list if the headline makes no sense.
 

garp

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#5
While their glitch in distribution systems might have had some effect, I think the bottom line is that despite the official stats, we are in a deep recession.
 

Happy Days

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Feb 14, 2017
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#6
“Shoprite’s high South African margin has been driven by a formula of low prices in ever-improving stores,”
Er, no o_O What improving stores? Shoprite/Checkers stores has the same shitty staff and systems. Their POS still doesn't support Tap and Go (ok, Woolworths too) and you can't pay your bills at the till (ok, Spar too).

It seems like PnP is the only group that knows how to use technology properly.
 

Happy Days

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#7
And their stores all has this bad smells in the fridge areas. Makes you wonder about whether they care that their customers don't find it appealing at all to shop with such nasty smells in the food area.
 

werny

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#8
Was in one of Checkers/Shoprite's server rooms in Brackenfell back in 2014, and oh boy was it a mess...! No wonder they are having "I.T system issues". :rolleyes:
 

Geoff.D

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#12
Was in one of Checkers/Shoprite's server rooms in Brackenfell back in 2014, and oh boy was it a mess...! No wonder they are having "I.T system issues". :rolleyes:
And that is an indictment against Shoprite management or of the IT industry?
The fact is very few server rooms even come close to an acceptable IT standard. Even the infamous Rosebank Jinx! Last I was there, I walked out in disgust and refused to install any of our equipment in that place, and we waited for Teraco to complete their Isando node.
 

Fox1

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#14
No SmartShopper and Spar Rewards coupled with a 2nd grade product offering for high prices. The shops they are competing with like Food Lovers and Checkout don't need a fancy IT system.
 
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