Pick n Pay’s price cuts are paying off: it is stealing customers from Shoprite and Checkers

Pick n Pay has released a trading update that shows relatively strong sales growth in a tough market.Its share price jumped 4% on Monday, while other retailers were bleeding.Pick n Pay’s share price rallied on Monday after new numbers confirmed that the long-suffering retailer is regaining market share.

Shoprite only managed sales growth in South Africa of 2.5%. While Pick n Pay’s sales include its African numbers, and is for the full year, it is now absolutely clear that the retailer is stealing market share from Shoprite and Checkers, says Gryphon research analyst and portfolio manager Casparus Treurnicht.

It has also offered steep price cuts: In the past year, its prices fell by 0.3% - compared to price hikes of 0.4% on average at Shoprite , and South Africa's food inflation of around 3%. It may also have benefited from Shoprite’s own problems – particularly at its Gauteng distribution centre. A strike and the implementation of a new warehouse system caused shortage of products, which may have encouraged shoppers to go to Pick n Pay instead.

BISouthAfrica How?,because Pick and pay we found it only in Mall's and big towns.

BISouthAfrica Smart shopper used to be good till PnP cut the earn per spend, also lost out a lot on the save the difference vouchers as I would forget to use them on next shop. Get a lot more back with eBucks at Checkers so do most of my shopping there occasionally at Spar and hardly at PnP.

BISouthAfrica The PicknPay cashiers are lazy and loud mouthed....looks like they all went to same training centre.

BISouthAfrica I was talking to my friends over the past weekend, Shoprite has so much downgraded the quality of its offerings to consumers and the shops generally dirty!

BISouthAfrica Whoever came up with the smart shopper points idea is a genius

BISouthAfrica It’s funny tha even P&P is also stealing. Definitely a South African word that crops up A lot.

BISouthAfrica Is it only in South Africa

BISouthAfrica “Lower prices you can trust” Shoprite_SA 🙋🏻‍♂️

BISouthAfrica PicknPay I bought mealimeal (p n pay brand braai pap) with strings and insects. I returned it I am dissapointed. Expiry date July 2019. This is the second time.

BISouthAfrica It's those smart shopper points, and a carefully detailed planogram of the store. If you walk into any CheckersSA It's complete madness. 😉

BISouthAfrica That is great....so now customers get quality and a good price......way to go pickly pay

BISouthAfrica CheckersSA

BISouthAfrica If only they could sort out the queues in their stores!

BISouthAfrica The BEST convenient grocery store

BISouthAfrica Wow. Who would've thought what customers want is to pay less? 😯 Absolute genius

BISouthAfrica But their customer service sucks

BISouthAfrica PicknPay Pick n Pay Hypermarkets are the best especially Hyper by the sea in Durban North 👌

BISouthAfrica I also prefer PnP Prices lately🤭👌 PicknPay

BISouthAfrica What! I just bought groceries at cheeckers, cause I thought they were cheaper, smh

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