Pick n Pay plummets on profits warning

2012-10-05 15:21

Johannesburg - Shares in Pick n Pay [JSE:PIK] fall more than 6% as the food retailer says first-half profit likely declined by as much as 40% due to intensified competition and poor availability of stock from suppliers.

Pick n Pay, which named former UK head of Tesco, Richard Brasher, as its new chief executive this week, is down 6.16% at R43.99.

Meanwhile, miners surged on bargain hunting, with shares of Anglo American [JSE:AGL] and other resource companies leading the gainers on the JSE.

A weaker rand and higher metal prices added to bullish sentiment as local mining companies benefit from a weaker rand because they sell commodities for dollars but pay most costs in rand.

Anglo shares rise 3.25% to R257.81 while shares in platinum producers add more than 2% even as labour unrest continues to close operations.

Harmony Gold [JSE:HAR] is 2.3% higher at R68.44 and AngloGold Ashanti [JSE:ANG] adds 2% to R290.54 as the weaker rand and higher dollar gold price push bullion priced in rand to record levels.

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  • cindy.wrathex.ruthven - 2012-10-05 20:24

    From a customers point of view. Your stores butcheries smell bad, your staff are unfriendly, items are often not priced and your store managers are not helpful and customers are going elsewhere.

      goyougoodthing - 2012-10-06 14:55

      Have to agree. SAA must send their staff to PNP for rudeness training. The stores are filthy. Produce awful. Never going back into one. Ever.

      sarel.esterhuizen - 2012-10-06 16:51

      PnP should never have gone with the franchised mini market route. They used to have the most trusted brand in retail, but Checkers is showing them a thing or two about how to build your brand. PnPs are not up to scratch anymore

  • - 2012-10-06 15:23

    Always giving the impression that their prices are the best yet go check the market then P+P comes a nasty 3/4. even smaller franchises are beating P+P

  • shaunisaac.malambo - 2012-10-06 15:27

    I stopped going to Pick 'n Pay, reason unfriendly staff, every staff member seems to act like a manager. Over weekends they push up their prices & during the week it's cheaper.

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