pick n pay
What is your strategy to reverse Pick n Pay's loss of market share?
Pick n Pay lost market share in part because it opened materially less space than some of its major competitors. A significant proportion of its capex was invested in supply chain technology infrastructure in recent years, which by its nature doesn't drive sales compared to stores. Our capital focus is now on new stores and refurbishment, which will drive sales and, in time, profitability.
Over the past year we have refreshed, without substantively altering our strategy. Our overarching ambition is for the Group to become the “Retailer of choice for all South Africans”. This builds on Pick n Pay and Boxer’s brand strength and strong store portfolio.
Importantly this refreshed strategy does not represent a major departure from the strategy that has been followed for the past five years.
We have seven themes geared to ensure that the business can grow sustainably and profitably. There is a balance of growth-driven priorities, focusing on space, customer, franchise and product, and those largely focused on improving efficiency such as replenishment and store operations. The “One Pick n Pay” initiative ties these together to ensure that the business works well as a unified whole.
Strategic priority: Grow selling space ahead of the market
There is substantial competition for retail space both within South Africa and in other African markets. Ensuring that Pick n Pay increases its overall share of trading space over the long term is an important strategic priority. Over the past three years our space growth has lagged that of our competition particularly into the faster growing lower income areas and small stores. This not only directly reduces our market share but also puts pressure on like-for-like sales growth. We will continue to develop store formats and channels that meet customers’ changing needs both in Pick n Pay and Boxer, in South Africa and beyond. Additionally we continue to build
Pick n Pay lost market share in part because it opened materially less space than some of its major competitors. A significant proportion of its capex was invested in supply chain technology infrastructure in recent years, which by its nature doesn't drive sales compared to stores. Our capital focus is now on new stores and refurbishment, which will drive sales and, in time, profitability.
Over the past year we have refreshed, without substantively altering our strategy. Our overarching ambition is for the Group to become the “Retailer of choice for all South Africans”. This builds on Pick n Pay and Boxer’s brand strength and strong store portfolio.
Importantly this refreshed strategy does not represent a major departure from the strategy that has been followed for the past five years.
We have seven themes geared to ensure that the business can grow sustainably and profitably. There is a balance of growth-driven priorities, focusing on space, customer, franchise and product, and those largely focused on improving efficiency such as replenishment and store operations. The “One Pick n Pay” initiative ties these together to ensure that the business works well as a unified whole.
Strategic priority: Grow selling space ahead of the market
There is substantial competition for retail space both within South Africa and in other African markets. Ensuring that Pick n Pay increases its overall share of trading space over the long term is an important strategic priority. Over the past three years our space growth has lagged that of our competition particularly into the faster growing lower income areas and small stores. This not only directly reduces our market share but also puts pressure on like-for-like sales growth. We will continue to develop store formats and channels that meet customers’ changing needs both in Pick n Pay and Boxer, in South Africa and beyond. Additionally we continue to build