S AFRICA: Retailer Pick n Pay mulls Nigeria entry
Pick n Pay said it was "actively" looking at "new strategic opportunities" in Africa
South African retailer Pick n Pay has revealed it is looking at ways to enter Nigeria.
Pick n Pay said today (15 April) a group of executives were in Nigeria looking at ways to break into the country.
"We have installed a team on the ground in Nigeria to explore opportunities in that market," the retailer said as it reported its financial results for the year to 2 March.
The company has a small business outside its domestic market and it has quit markets in the last 12 months.
Pick n Pay has closed its franchise businesses in Mauritius and Mozambique, which it described as "clear and decisive action".
However, it said it had seen "good growth" in Zambia. Its sales outside South Africa were up 9.4%.
Pick n Pay reported higher annual turnover and earnings despite "subdued" like-for-like sales. Pre-tax profits were up 3% at ZAR830.9m (US$78.6m).
The company's financial year comprised 364 days, versus 368 in the previous fiscal period.
Excluding that factor, pre-tax profits were up 17.6%. Headline earnings per share - a key reporting metric in South Africa - grew 43.5% to 68.83 cents.
Turnover climbed 7.7% to ZAR63.1bn in part due to a 2.7% increase in like-for-like sales.
However, Pick n Pay said new stores had given a boost to its top line as higher food and utility bills weighed on consumer spending.
The retailer also claimed its performance was getting closer to that of the market as a whole. "The gap between Pick n Pay's growth and overall market growth narrowed from 2.5% in the previous year to 0.7% this year," the company said.
"We are a stronger business than we were 12 months ago. We are better positioned to strengthen and grow our core South African business, and actively explore new strategic opportunities in the rest of Africa."
Synopsis Canadean's "Pick n Pay Stores Limited : Retailing - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains...
Pick ’n’ Pay is expected to improve its position thanks to a growing presence within internet retailing in South Africa. As the company’s consumer base is middle- to high-income consumers, Pick ’n’ Pa...
Pick ‘n Pay stores target all consumer groups, with a focus on packaged food, home care and beauty and personal care sales. In order to increase its customers’ basket size its product profile has shif...
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South African packaged food achieved 9% growth in current value terms in 2013, showing an improvement of just under one percentage point compared with the previous year. Value growth was boosted by ri...
Pure–play retailers dominate the South African online retail industry, accounting for more than half of the leading online retailers tracked by Canadean. In addition, South African online retailers of...
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