Former Tesco UK boss Richard Brasher's efforts to boost the fortunes of South Africa's second-largest grocer, Pick n Pay, appear to be bearing fruit after the company reported its first profit increase in more than three years.
Brasher joined Pick n Pay in October 2012 and immediately set about reorganising the business by streamlining its supply chain, cutting costs across the group and reducing its head office and regional head count by 400.
Facing intense competition from rivals such as Shoprite and Walmart-owned Massmart, the company said its restructuring and ongoing attempts to claw back market share had contributed to a 6.2 per cent increase in net income to R192m (US$19.5m) during the six months to August.
'I'm encouraged, but far from satisfied,' Brasher commented. 'We can do better. We are determined to control our costs and invest in growth.'
Pick n Pay's sales for the period rose 7.5 per cent to R30.1bn (US$3.07bn), although increased fuel costs and high levels of household debt reportedly dampened consumer confidence in what is Africa's largest economy.
