Discount retailer Pepkor first quarter sales up 6.5% on store expansion

JOHANNESBURG, Jan 30 (Reuters) – Pepkor Holdings (PPHJ.J), owner of South African clothing brands PEP and Ackermans, reported a 6.5% rise in first quarter revenue on Monday, helped by 132 new stores that it opened in the period and the acquisition of Brazilian retailer Avenida.

But its like-for-like sales were hit by power cuts.

Retailers in South Africa have been hit not only by inflationary pressure on consumers, but also by rolling power cuts forcing retailers to pay more for back up power supply.

“The impact of load shedding (power cuts) was more pronounced in the rural and deeper outlying areas where the group’s retail footprint has higher representation,” Pepkor said.

However, more than two-thirds of its stores were able to trade during electricity disruptions by using back-up power, it said, but added that the company still saw a 221% increase in loss of trading hours in the first quarter ended Dec.

31, compared with the same quarter in 2021.

This month, upmarket clothing retailer Truworths(TRUJ.J) and value retailer Mr Price(MRPJ.J) also saw a loss of business due to incessant power disruption in South Africa.

Pepkor, majority-owned by Steinhoff International Holdings (SNHJ.J), said group revenue in the quarter rose to 24.3 billion rand (£1.41 billion).

Pepkor’s group merchandise sales for its retail segments, which include clothing, general merchandise, furniture, appliances, electronics and building materials, increased by 7.7%, while like-for-like group sales fell by 1.4%.

Like-for-like sales excludes the newly-acquired Avenida business.

While sales of clothing and general merchandise, Pepkor’s biggest business, increased by 10.2%, partly helped by cash-strapped shoppers buying clothes and homeware at its PEP discount stores, same store sales decreased by 1.5%.

(£1 = 17.2760 rand)

Reporting by Nqobile DludlaEditing by Promit Mukherjee and Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

Tags:

aer-lingus listed on couponmatrix.ukcote-brasserie listed on couponmatrix.uketihad-airways listed on couponmatrix.ukjura-watches listed on couponmatrix.ukkew-royal-botanical-gardens listed on couponmatrix.uktower-of-london listed on couponmatrix.uk
aer-lingus listed on couponmatrix.ukThe Republic of Ireland’s much-loved national carrier still evokes feelings of nostalgia among its regular client base. In recent years, though, it’s partly repositioned itself as a highly competitive low cost carrier. Your Aer Lingus promo code will help you save whether you travel within Europe without any extras, or go intercontinental with all the trimmings. A recent analysis saw Aer Lingus judged the safest budget airline in the world, proving that no matter how much they diversify, customers still come first.
cote-brasserie listed on couponmatrix.ukTake a peek at the delectable Côte Brasserie menu and you’ll soon be dreaming of the flavours and ambience of Paris. Inspired by Parisian bistros, Côte Brasserie has brought French cuisine and culture to the UK - whether you’re popping into Côte Brasserie Covent Garden or Côte Brasserie Cardiff, you can indulge in fabulous French dishes, set menus, and aperitifs for a very affordable price. Don’t forget to browse our collection of Côte Brasserie discount codes before you book a table, and you could tuck into a fine French spread without busting your budget.
etihad-airways listed on couponmatrix.ukEtihad, one of the most trusted and respected airlines in the world at the moment, currently travel to over 110 destinations across the world. Launched in 2003 and owned by the Abu Dhabi Government, Etihad has a mandate to run safely, commercially and profitably. The only way to do this is by offering a great service and they certainly do that. Experience their great quality flying for yourself and use an Etihad promo code, you might find what you're looking for at an even lower cost.
jura-watches listed on couponmatrix.ukAs the UK's largest online luxury watch shop, Jura Watches set a precedent for both variety and quality. Downsize a designer price tag with a Jura Watches discount code from Groupon and walk away with a stellar saving on the likes of Armani, Hugo Boss and Swarovski. So if you need to replace a broken strap, want to upgrade to a smart device or simply looking for a shiny replacement for your old wristwatch, surprise yourself with the savings available at Jura.
kew-royal-botanical-gardens listed on couponmatrix.ukArguably the world’s greatest botanic garden complex, Kew Gardens is a 130-hectare UNESCO World Heritage site and an oasis of natural beauty enjoyed by generations of Londoners and visitors to the capital. The Kew Gardens discount code will open up a world of native and exotic plants, flowers, cacti and more with a record-breaking number of varieties to look at - all set in a stunning setting enhanced with lakes, multi-level Victorian greenhouses, architect-designed feature buildings and a 65 foot high treetop canopy walkway.
tower-of-london listed on couponmatrix.ukA fortress, palace and prison all in one, the Tower of London is a fascinating place to visit and is an ideal stop on a family day out - with a Tower of London discount you’ll be able to access over 1,000 years of history for less! Find out what famous prisoners have spent some time here such as Guy Fawkes and Anne Askew and of course you can’t miss out taking a peek at the infamous Crown Jewels.