Pepkor, the owner of household brands PEP, Ackermans, Tekkie Town, among others, said in a trading update for the three months ended December 31, 2023, managed to grow its market share and revenue delivering healthy sales.
Its group merchandise sales increased by 5.5% and like-for-like sales increased by 4.1% for the quarter.
Group revenue from continuing operations for the quarter increased by 7.2% to R26 billion.
“The group's discount and value brands continue to resonate with customers, delivering healthy sales growth from a solid base in the comparable quarter last year,” it said.
Based on the latest RLC data to December 2023, the retailers said it had expanded overall market share in each month during the quarter and also on a three, six and 12-month rolling basis.
“Overall, Ackermans grew market share in December 2023, which represents a significant change in trajectory,” the group said.
This as PEP gained market share in key categories including babies, kids, school and home; Ackermans expanded market share in the school and younger kids categories; and Specialty gained share in adult wear.
“These positive trends persist despite a challenging macroeconomic and operating environment, with customers facing financial pressure. The significant disruption in port operations, reported in November 2023, continues to have a negative impact on stock inflows.
“The group's merchandise and logistics teams have been proactive in addressing delays and implementing solutions to expedite and advance stock inflows,” it said.
Retail selling price inflation in PEP, Ackermans and Speciality (in aggregate) amounted to 6.5% for the quarter.
Pepkor said in January 2024, trade strengthened further in PEP and Ackermans, based on a successful back-to-school season. For the January 2024 trading month, like-for-like sales increased by 7.8% in PEP and 8.7% in Ackermans.
The group continued to execute its organic store expansion strategy with a total of 92 new stores opened during the quarter (60 on a net basis), expanding the retail store base to 5 977 stores.