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Johannesburg - South Africa's second-largest grocer, Pick n Pay Stores [JSE:PIK], reported a near 14% rise in first-half profit on Tuesday, a sign that a costly strategy to win market share and streamline its supply chain is starting to bear fruit.
Pick n Pay said headline earnings per share totalled 41 cents in the six months to September 1, compared with 36c a year earlier.
Pick n Pay is trailing behind rivals such as Shoprite both operationally and in the stock market, due to late investments in the supply chain and the costs of a shopper loyalty programme to protect and win market share.
Chief executive Richard Brasher, the former head of Tesco's UK unit who took over Pick n Pay this year, is widely expected to hasten the business turnaround and help it fend off competition from Walmart unit Massmart.
Pick n Pay said sales increased 7.5% to R30.1bn, a reflecting an industry-wide slowdown in consumer spending in the face of rising fuel costs and high household debt.
Pick n Pay said headline earnings per share totalled 41 cents in the six months to September 1, compared with 36c a year earlier.
Pick n Pay is trailing behind rivals such as Shoprite both operationally and in the stock market, due to late investments in the supply chain and the costs of a shopper loyalty programme to protect and win market share.
Chief executive Richard Brasher, the former head of Tesco's UK unit who took over Pick n Pay this year, is widely expected to hasten the business turnaround and help it fend off competition from Walmart unit Massmart.
Pick n Pay said sales increased 7.5% to R30.1bn, a reflecting an industry-wide slowdown in consumer spending in the face of rising fuel costs and high household debt.
