2012 CEO report cards

Finweek English Edition - - INSIDE - Simon Brown

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.

Gareth Ack­er­man

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