Harare – Zimbabwe might be facing a myriad of challenges, including declining aggregate demand, but Pick n Pay [JSE:PIK], through its associate TM Supermarkets, has managed to charm its way into the hearts of Zimbabweans.
While its biggest opponent OK Zimbabwe is talking of a 4.8% drop in sales in the first quarter to June from the prior year, TM Supermarkets is doing the opposite: recording double-digit growth rates in sales and earnings.
In a report accompanying Pick n Pay’s results for the half-year ended August 28 2016, CEO Richard Brasher said the group’s share of the profits of TM Supermarkets had grown by 53.7% in local currency terms.
“TM Supermarkets, the group’s associate in Zimbabwe, delivered a strong result in a difficult trading environment,” said Brasher.
“The group’s share of TM’s earnings grew 81.5% on the same period last year to R28.5m, with growth of 53.7% in local currency terms,” he added.
The positive results came in a trading environment described by the associate’s management as characterised by impediments – mainly sluggish economic conditions and deflation in food prices.
Back in June, Meikles executive chairperson John Moxon, who runs TM Supermarkets, said the retailer was seeing an increase in its customer count. Further to that, the average basket size was also on the increase.
“This is an indication that customers are spending more in our stores with competitive prices and unique promotions,” said Moxon at the time.
TM Supermarkets now has 58 stores in Zimbabwe, 15 of which trade under the Pick n Pay banner. The bulk of its product range is imported from South Africa. – Fin24