Turnaround Strategy Well Under Way

Food and clothing retailer Pick n Pay said it is “well advanced” with its turnaround strategy, which aims to increase its profit margins to a sustainable level. In a recent trading statement, the group said it expects headline earnings per share (HEPS) for the 42 weeks to 26 February 2017 to increase by between 15% and 20% year on-year, driven by greater cost control, improvements in its supply chain and higher productivity in stores.

- Moxima Gama

The group is expecting to report turnover growth of 7%, which “reflects a difficult trading environment, alongside some internal disruption from refurbishments and store closures”, it said. Growth plans include improving its customer offering across its Pick n Pay and Boxer formats and enhancing its clothing, online and services offerings.