Shoprite market share claim is 'hogwash' - Pick n Pay

In an operational update on Monday, 26 October, Shoprite said it now boasted the largest share of all supermarket groups in South Africa. "This was achieved in a period in which internal food inflation declined to a third of what it was for the same period of the previous year."

The group said that it increased its market share by 1.6% to its highest level of 31.67% in September.

Pick n Pay responded by saying that Shoprite's comments were 'just plain wrong'.

"Nielsens have subsequently backed up the figures Pick n Pay presented at its year end results last week, which show that Pick n Pay had increased its market share over the 12-month period (August 2008 to August 2009) by 0.4%.

"The numbers quoted by Nielsen then substantiate the fact that Pick n Pay is indeed South Africa's largest supermarket chain, and by a considerable margin," the group said.

Pick n Pay pointed to the following numbers revealed at the analyst's presentation, which included Boxer and excluded Score (a discontinued operation) for PnP and includes OK Foods (Sentra conversions) and Usave for Shoprite/Checkers - annual ending August 09:
PnP Group R12 million August 2008 33.5% and R12 million August 2009 33.9%
R12 million August 2009 Shoprite 29%.

It added that if Score were included into the PnP Group total the market share would have been 34.6% for the same twelve-month period.

Pick n Pay said that comparable market share figures for September 2009 saw its share at 33.3% including Boxer, and at 33.5% including Score, while Shoprite enjoyed a 30.8% share.

"Ultimately, however, Pick n Pay does maintain that profitable market share is more important than market share in isolation," it said.

Nick Badminton, CEO of Pick n Pay said: "We do not wish to engage in a debate on market share in the media with Shoprite but will rely on Nielsens, from where we both derive our statistics, to provide empirical information. These figures speak for themselves."

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