South African retail group Pepkor has continued to demonstrate its resilience and customer-centric approach in the face of a challenging macroeconomic environment and ongoing disruptions. Pepkor’s Q1FY24 results reveal a commendable 7.2% increase in group revenue from continuing operations, reaching R26.0 billion. The success is attributed to the popularity of Pepkor’s discount and value brands, which continue to resonate with consumers.
Pepkor’s flagship brand, PEP, saw an increase in market share in crucial categories such as babies, kids, school, and home. Ackermans, another prominent brand under the Pepkor umbrella, expanded its market share in school and younger kids categories. Additionally, Specialty, the adult wear brand, reported gains in market share, showcasing the diversity and strength of Pepkor’s portfolio.
Despite facing a challenging operating environment, Pepkor has successfully navigated hurdles such as financial pressures on customers and disruptions in port operations. The company’s merchandise and logistics teams have been proactive in addressing delays, implementing solutions, and ensuring the smooth flow of stock to meet customer demands.
Pepkor’s success story extends into January 2024, where trade strengthened further, particularly in PEP and Ackermans. The back-to-school season played a pivotal role in driving sales, with like-for-like sales increasing by an impressive 7.8% in PEP and 8.7% in Ackermans for the trading month.
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