JOHANNESBURG - Pick n Pay said yesterday that it had cut costs as it reiterated that it expected a decline of between 20 and 25% in headline earnings a share for the half-year to August after cutting 10% of its staff in a voluntary severance programme (VSP).
“In a difficult economy, customers want even better value. We have cut our costs, modernised Smart Shopper, made more progress on centralisation, and are buying better,” Pick n Pay chief executive Richard Brasher said yesterday.
Brasher said the VSP was a key step in modernising the business and reducing costs. “It had a once-off cost which has impacted on our first-half result. But this cost will be fully recovered in the current financial year.
On a normalised basis, excluding the VSP, we again delivered a double-digit improvement in profitability,” said Brasher.
- BUSINESS REPORT