Pick ‘n Pay ‘not disappointed’ with Xmas sales

LISTED retailer Pick ‘n Pay was ‘not disappointed’ with its festive sales, the company said yesterday.

‘We were prepared for good sales over the festive season and were not disappointed as customers showed amazing resilience, even under difficult economic conditions, and sales figures have exceeded forecasts,’ said Dennis Cope, group finance director.
He said the percentage of shoppers buying last minute purchases three days before Christmas was also far higher than in previous years.
‘But, as was expected, consumers spent their hard-earned money wisely,’ Cope said.
For the most part, they selected ‘useful gifts with a lasting lifespan’ – such as MP3s, PlayStations and other electronic and computer durables.
Other practical gifts included ‘back-to-school’’ items and toiletries, especially in the character-branded merchandise ranges, Cope said.
‘Consumers also paid more attention to unit prices (i.e. cost per volume or weight), buying smaller pack sizes.’
Predictions that many people would stay at home this year was evidenced by growth in sales of braai accessories, outdoor games and pool toys, Cope added.
With regard to food, he said the usual lines associated with Christmas such as turkeys and mince pies sold well, as did beverages.
‘However, Pick ‘n Pay experienced a shortage of lamb and in some areas, poultry and carbonated soft drinks.’
That the effect of the global credit crunch was less marked in South Africa, than in the northern hemisphere, could in part be attributed to the National Credit Act and high interest rates, which had already dampened spending, Cope said.
Furthermore, economic growth was also being spurred on by increased government infrastructure spending.
‘Projects such as Acsa’s airport upgrades, the Gautrain project and 2010 stadiums and developments will all cushion the slowdown.’
While Cope expected some fallout from the economic slowdown in developed markets, the drop in the fuel price, the relative stability of the rand and anticipated interest rate decreases were ‘all big positives for the year ahead’.
He said that Pick ‘n Pay was anticipating solid growth during 2009. – Nampa-Sapa