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."



Sainsbury's pulls the price lever

Sainsbury's, the UK's second-largest grocer, has set out plans for lower prices on a range of products, a move announced amid signs of pressure on its market share....


Intermarche broke rules with Nutella promo, French watchdog says

The pandemonium in stores of Intermarché as shoppers scrambled to grab jars of cut-price Nutella went viral - but the country's competition watchdog has announced the French retailer broke rules on se...


Big Food in investor spotlight this week at CAGNY

The senior management of a number of the major food manufacturers operating in the US will be in Florida this week for a key date on investor calendars....

Forgot your password?