2012 CEO report cards
1-year return: -9.5%
The money quote: “We would like to thank Nick Badminton, our outgoing CEO, for the integral role he played in transforming the business” – Results statement year-end February 2012
Grade: F for fail
RETAIL STOCKS have been f lying but Pick n Pay has been grounded having lost Nick Badminton as CEO in February it will be a full year until they finally get a new CEO – ex Tesco CEO Richard Brasher. Brasher didn’t exactly leave Tesco in a blaze of glory after he failed to revive the company’s UK sales and at the time of his departure they had their lowest market share since 2005.
Pick n Pay’s Australian adventure took management attention as they got it horribly wrong and while they were learning Aussie rules they lost local market share and were years late to central distribution. Their trading margins are hovering around 1% while Shoprite is some five times better off at 5.64%. Bottom line is that Shoprite’s been eating Pick n Pay’s lunch for years.
This once bluest of blue chips has totally lost its way and it really is time for the Ackerman family to unwind the controlling structure and let the cards fall where they may.