Finweek English Edition - - SIMON SAYS -

Spar and Mr Price* both re­leased great­look­ing trad­ing up­dates that re­ally cause us to ques­tion the the­ory that the con­sumer is strug­gling. Or per­haps it is just that th­ese two com­pa­nies are re­ally very good at what they do. They’re both look­ing for in­creases in HEPS of above 20% – great num­bers – and it’s dif­fi­cult to tel l i f t his is t he re­sult of great man­age­ment or whether con­sumers are not as pres­sured as every­body says they are. Mr Price is now on a for­ward P/E of some 25 times and Spar around 20 times. Nei­ther is cheap and, re­gard­less of how the con­sumer is faring, with man­age­ment of the high­est or­der one has to pay higher prices.

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