“That’s it, the end of the series,” were CEO Richard Brasher’s parting words as he ended his final results presentation after eight years in charge of Pick n Pay.
“We are back,” he told the retailer’s founder, 90-year-old CEO Raymond Ackerman, sitting in the audience for Brasher’s final curtain call, speaking of the turnaround under his leadership. Dutch national Pieter Boone has now taken over as CEO.
Struggling SA consumers have a lot to thank Brasher and other SA retailers for as grocers continue to absorb rising food prices by cutting operating expenses.
Consumer price inflation was about 4% in 2020, but in its financial year internal price inflation at Pick n Pay reached 3.8%.
Pick n Pay, like the rest of SA, is faced with ever more costly and unreliable electricity supply. It has saved R2bn in electricity costs in the past few years, thanks to a more efficient use of power in stores and distribution centres.
The company said it has reduced expenses by R600m in the past two years by improving its supply chain, cutting water usage and reducing transport expenses, which make up 50% of its supply chain costs.
It is increasingly investing its savings in price promotions as food prices are set to rise this year due to globally high maize prices, a core element in animal feed.
Yet despite retailers’ role in helping consumers to be able to afford food, the government does them no favours. Pick Pay lost about R800m in profit due to illogical lockdown bans on the sale of cigarettes, alcohol and even clothing, kettles and hot pies. Perhaps the government could make life less onerous for retailers who keep us fed.
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