South Africa's Pick n Pay Stores' H1 earnings fell 46% to 191M rand despite 7.4% revenue growth, to 27.1B rand, because of costs associated with new customer-loyalty program, distribution system
October 19, 2011
– South African supermarket chain Pick n Pay Stores Ltd. said its first-half earnings fell 46% because of the cost of its new customer-loyalty program and developing a central distribution system, Bloomberg reported Oct. 19.
The company's earnings fell to 191 million rand from 354.3 million rand in the year-ago period as sales rose 7.4% to 27.1 billion rand, the company reported.
“We have seen encouraging turnover growth,” Chief Executive Officer Nick Badminton said. “However, the investments we have made in transforming Pick n Pay into a world class retailer have had a material impact on earnings.”
The primary source of this article is Bloomberg, New York, New York, on Oct. 19, 2011.