Blog: Brasher faces challenge as Pick n Pay disappoints in H1
Michelle Russell | 25 October 2012
South African supermarket operator Pick n Pay may be counting on new CEO Richard Brasher to turn the retailer's fortunes around after the group booked a "disappointing" drop in first-half earnings today (25 October).
The group was open about its disappointment this week at the 41.5% slide in earnings, which it said was impacted by investments, as well as the centralisation of its distribution operations.
The group said the appointment of Brasher brings "precisely the skills and experience we need to take the business forward".
The former Tesco UK chief is certain to have a challenge on his hands.
It is the first time Pick n Pay has appointed a CEO from outside its own ranks, and while Pick n Pay is confident he has what it takes to turn the group's fortunes around, analysts are less confident.
36One Asset Management analyst Even Walker believes Brasher's main challenges will be the country's "militant labour union", in addition to productivity issues, which he said he'll "have a tough time fixing". He adds: "It's going to be messy."
The UK's Serious Fraud Office has launched an investigation into the GBP263m (US$424.6m) black hole in Tesco's accounts, the retailer confirmed today (29 October)....
A mobile app that claims to be the "most comprehensive food-rating database available" to US consumers has raised the hackles of the country's food manufacturers....
Just weeks after announcing a purchasing tie-up in France with local rival Systeme U, Auchan has outlined an international agreement with Germany's Metro Group....
Tesco has reported a massive 92% drop in first half profits as the accounting fiasco continues to widen....
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