Pick n Pay

Pick n Pay will more than double the pace of low-cost food and clothing store openings over the next year as living costs rise. Image via: @PicknPay / Twitter

Pick n Pay expands cheaper food stores as living costs rise

Pick n Pay will more than double the pace of low-cost food and clothing store openings over the next year as living costs rise.

Pick n Pay

Pick n Pay will more than double the pace of low-cost food and clothing store openings over the next year as living costs rise. Image via: @PicknPay / Twitter

Pick n Pay Stores Ltd. will more than double the pace of low-cost food and clothing store openings over the next year as living costs rise and cash-strapped shoppers turn to cheaper alternatives.

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According to Bloomberg, the South African grocer plans to open 61 of its discount Boxer food stores in the fiscal year through August, from 36 in the previous 12 months.

Pick n Pay’s 3-year target of R3 billion of savings on track

It also has 67 new casual wear-focused clothing outlets confirmed for the year, from 27 in fiscal 2022.

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“We’ve seen inflation rising to levels that we haven’t been familiar with for some years,” David North, Pick n Pay’s executive for strategy, said in an interview on Tuesday.

“We think there’s a lot of room to give more customers access to these brands.”

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The company expects the next financial period to be an investment year, with “meaningful earnings growth” only forecast from fiscal 2024, it said in an earnings statement. 

Pick n Pay’s three-year target of R3 billion of savings is on track and while inflationary cost pressures and increasing power cuts will affect the next six months, these challenges shouldn’t derail the cost cutting and modernisation plan, North said.

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