Despite retailers struggling, Pick n Pay have grown 7% in the past year. This was partly due to cutting costs, laying off 10% of its work force and an increase in sales.
Richard Brasher CEO at Pick n Pay says that they are very positive for 2018. He says that from a customer point of view, people want good deals and Pick n Pay was able to provide it for them.
If you are prepared to trade, there is trade to be had out there. But you've got to have the best prices.— Richard Brasher, CEO at Pick n Pay
Pick n Pay have also seen a massive turn around in terms of inflation. For Brasher this is also great for customers.
I think it's a long time that South Africans have seen sort of a flat inflation figures in some of the food retailers. This is good for customers, tough for retailers.— Richard Brasher, CEO at Pick n Pay
I think it's better that way around, because in our quarter 4 result we managed 4.7% like for like volume increase. And that is always a good barometer for a healthy business.— Richard Brasher, CEO at Pick n Pay
Brasher says even though these margins seem small to the laymen, but where they benefit is volume.
Our margins are around 2.5, so we have to stay close to the paper clips and the photocopier costs. But what we do get is obviously the benefit from volume. Our turnover for the year was some R82 billion.— Richard Brasher, CEO at Pick n Pay
So we turnover a lot, we employ a lot of people, we've got a lot of costs and we make a modest profit. But I am pleased that our underlying profit this year was 19.3 % and that bodes well for us to be able to invest in the business in the coming year.— Richard Brasher, CEO at Pick n Pay
For more detail; listen to the interview in the audio below.
Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.
Recommendedby NEWSROOM AI
The Money Show’s Bruce Whitfield interviews Finance Minister at Treasury Nhlanhla Nene on the IMF and World Bank Group meetings.
The Money Show’s Bruce Whitfield interviews Dr Adrian Saville, Professor at Gordon Institute of Business Science (Gibs).
Nedbank will reconsider its relationship with KPMG in 2019. The Money Show’s Bruce Whitfield interviews its CEO Mike Brown.
Bruce Whitfield interviews Lee Kasumba, who speaks about two South African guys selling deep fried chicken in Abidjan.
The Money Show’s Bruce Whitfield interviews Zang Chocolate cofounders Jethro Braun and Brett Horwitz.
ANC Tshwane spokesperson Bafuze Yabo gives details of their planned action against the City of Tshwane.
Investigative journalist and author Jacques Pauw shares his thoughts on 'The Lost Boys of Bird Island' book.
Dr Taj Hargey says he is advocating for the ban of women wearing burkas in public because they look ridiculous.
Khabazela shares tweets & videos that have gone viral including a parrot that told firefighters the F-word during its rescue.
The Money Show's Bruce Whitfield interviews Africa correspondent Lee Kasumba
Marianne Thamm wrote the forward to 'The Lost Boys of Bird Island' and worked with Mark Minnie in editing the controversial book.
Khabazela shares Facebook posts, YouTube videos that have gone viral including one with the smartest dogs.