The retailer’s share price plummeted on Monday after it issued a dire profit warning.
In the 16 years since his departure from Pick n Pay, competitors have not only gained market share but have been eating its lunch as the retailer played catch-up on just about every front.
Now, with Sean Summers’s reappointment as group CEO, Pick n Pay is hoping to be back in the ring, after weak consumer demand, the costs of rolling blackouts and increasing competition piled pressure on the retailer’s margins.
On Monday, Pick n Pay issued a Sens announcement in which it welcomed Summers back to the fold while issuing a startling profit warning. The announcement sent the share price plummeting: by 12.30pm, it was down almost 15%, after stating that it expects to report a half-year loss of between 79.31 and 98.18 cents per share, which is down between 184% and 204% year on year.
Summers’s reappointment comes at a critical time for the retailer, which has warned for months that it was under significant pressure.
In July, Pick n Pay said it had faced abnormal costs of R610-million due to the increased expense of rolling blackouts, a duplication of supply chain costs and restructuring costs.
Between March and June this year, it spent R300-million on diesel…
