Pick n Pay ASAP!, formerly known as Bottles, is firing on all cylinders as shoppers see value in the grocery delivery mobile app.
The retailers announced on Wednesday that comparable headline earnings per share (HEPS) swelled by 90.9% year-on-year, a resilient performance in a period marked by unprecedented civil disorder in South Africa and the resumption of government restrictions on alcohol sales in response to the third wave of the COVID-19 pandemic.
HEPS is South Africa’s main profit gauge.
Pick n Pay said it entered the financial year with positive trading momentum, and delivered a strong first-quarter result, with sales up 9% against a prior period severely impacted by COVID-19.
Trading disruptions became a significant feature of Pick n Pay’s second quarter, with a resumption of government restrictions on alcohol sales (55 days of lost liquor trade) and unprecedented civil unrest in KwaZulu-Natal and parts of Gauteng.
The unrest had a considerable impact on Pick n Pay operations, with severe damage to 212 stores, the destruction of two large distribution centres and the temporary closure of 551 stores for safety reasons.
“Progress in developing Pick n Pay’s omni-channel proposition – asap! has delivered 200% growth in on-demand online sales since its launch in August,” says Pick n Pay.
“Smart Shopper recognised as the most used loyalty programme in South Africa, with Pick n Pay loyalty penetration close to 80% of sales.”
“Looking beyond the disruption, the Group is encouraged by its progress in delivering a stronger and more compelling customer offer, and in particular by progress in its Boxer, Clothing and Omni-channel offers.
“The Group recognises that there is further to go in the Pick n Pay turnaround. Its new Project Future ambition to deliver an additional R3 billion of savings over the next three years from further modernisation and efficiency measures will be pivotal in creating the headroom to drive innovation and even greater value for customers.”