PnP: Shoprite claim is hogwash

Johannesburg - Retail giant Pick n Pay on Tuesday refuted comments made by Shoprite with respect to the market shares of both companies, branding its statistics 'hogwash'.

In an operational update on Monday Shoprite said it now boasted the largest share of all supermarket groups in South Africa.

"This was achieved in a period in which internal food inflation declined to a third of what it was for the same period of the previous year."

The group said that it increased its market share by 1.6% to its highest level of 31.67% in September.

Pick n Pay responded by saying that Shoprite's comments were 'just plain wrong'.

"Nielsens have subsequently backed up the figures Pick n Pay presented at its year end results last week, which show that Pick n Pay had increased its market share over the 12-month period (to August 2009) by 0.4%.

"The numbers quoted by Nielsen then substantiate the fact that Pick n Pay is indeed South Africa's largest supermarket chain, and by a considerable margin," the group said.

Pick n Pay said that comparable market share figures for September 2009 saw its share at 33.3% including Boxer, and at 33.5% including Score, while Shoprite enjoyed a 30.8% share.

"Ultimately, however, Pick n Pay does maintain that profitable market share is more important than market share in isolation," it said.

Nick Badminton, CEO of Pick n Pay said: "We do not wish to engage in a debate on market share in the media with Shoprite but will rely on Nielsens, from where we both derive our statistics, to provide empirical information. These figures speak for themselves."

- I-Net Bridge