South Africa-based Pick n Pay reports its strongest six-month trading performance for five years. The retailer also extends its partnership with BP to benefit its loyalty programme customers.
Positive H1 2018 results…
Pick n Pay has reported growth of 19.1% in profit before tax in H1 2018. Profit reached ZAR670.2m (US$46.8m) compared with ZAR562.8m (US$39.3m) in H1 2017. The retailer’s LFL and total sales also increased by 3.8% and 6.4% respectively.
…in a tough economic climate
Pick n Pay attributes the growth to lowering its prices and increasing productivity. The retailer reduced the prices of 2,500 everyday grocery products to help customers in South Africa’s tough economic climate.
Richard Brasher, Pick n Pay’s chief executive, commented, “We have invested heavily in our customers, just when they need it most”.
Extended partnership with BP
Pick n Pay has extended its partnership with BP to develop its Smart Shopper loyalty programme. Loyalty customers will soon be able to earn points from refuelling at BP service stations.
John Bradshaw, Pick n Pay’s head of marketing, commented, “We are always looking to improve the Smart Shopper programme to make it more accessible and valuable. Our customers have told us they want more opportunities to earn points through their everyday spend, so we were excited to extend our partnership with BP to offer them this value”.
Pick n Pay first partnered with BP in 2008 with a trial of two franchised stores. There are now 133 franchise Pick n Pay Express stores on BP forecourts across South Africa. A further 30 stores are expected to open in 2018 and 40 in 2019.
Sign-up here to receive our free newsletter that will keep you up-to-date about the latest news and developments from Pick n Pay.