The group recorded a 13.5 percent jump in group revenue to R9.9billion in a tough economic environment, with increased competition and constrained consumers. Retail revenue jumped 12percent to R9bn for the period.
Group chief executive Ivan Saltzman said the group had weathered the stagnant economy. “This talks to the resilience of our brand and industry, together with our unmatched offerings, great customer service and a clear everyday low price strategy,” he said.
He said with the strike and warehouse decentralisation concluded, the group continued to focus on reducing and rationalising its stock holding to improve free cash flow generation and to ensure that it meets its medium-term net working capital targets.
“This focus, not at the expense of stock availability in its retail stores, has resulted in inventory levels being down R660million from year-end. This will have a significant impact on our purchases-driven rebates in the first half of 2020,” Saltzman said.