Pick n Pay's group turnover rose 2.7% in the 20 weeks ended July 19, with strong growth at its Boxer discount chain helping to offset continued pressure on its core supermarket business, the South African grocery retailer said.
A woman uses a trolley as she shops at a Pick n Pay store at Maponya mall in Soweto. (Reuters, Siphiwe Sibeko)
- Group turnover increased 2.5% on a like-for-like basis, while its core Pick n Pay segment recorded flat turnover year on year, although like-for-like sales grew 2.6%.
- Discount retailer Boxer continued to outperform, with turnover up 7.2% and up 2.2% on a like-for-like basis.
- Within South Africa, Pick n Pay turnover fell 0.4%, reflecting the completion of planned closures or conversions of underperforming company-owned supermarkets as part of the group's turnaround strategy.
- Its South African company-owned supermarkets, which account for most of Pick n Pay's domestic sales, delivered like-for-like sales growth of 3.3%, with implied like-for-like volume growth of 2.0%.
The retailer said market conditions remained challenging, citing weak economic growth, elevated fuel prices and subdued food inflation.
