PICK N PAY CLOSES MORE STORES
In only 45 weeks, Pick n Pay has closed 32 of its supermarkets. Twenty-four of those were company-owned while eight of them were franchise stores.
The retailer has resorted to closing stores to help its bottom line and although it’s working, it means its once very successful and large footprint is shrinking.
The closing of stores forms part of Pick n Pay’s store reset plan. Along with the closing, the retailer also converted five of its company-owned stores to franchise stores.
While the plan is helping when a like-for-like comparison is done with figures before that, sales still show a decline of 0.4% at the group level and 0.1% at South African levels.
BusinessTech reports that the group embarked on a major turnaround strategy after recording an after-tax loss of R3.2 billion for the year ended 25 February 2024 (FY24). This followed a R2.8 billion non-cash impairment on the assets of Pick n Pay company-owned stores.
One of the sections that are outperforming the other is online sales. Thanks to the continued growth of Pick n Pay asap! and Pick n Pay Groceries on the Mr D app, the sales have grown by 52.5%.
Image credit: The Citizen
