Hold­ing out for re­sults

Finweek English Edition - - Marketplace Simon Says -

A rough re­cent trad­ing up­date from Sho­prite*, with an at­tempt at mak­ing it look pretty. But rev­enue that is up only 1.7%, is bleak, even if Sho­prite con­tin­ues to have a lot of prod­ucts ex­pe­ri­enc­ing de­fla­tion (11 607 items are cheaper than a year ago). This hurts as op­er­a­tional costs are in­creas­ing while rev­enue strug­gles. The group also ex­pe­ri­enced a strike in its largest dis­tri­bu­tion cen­tre in Gaut­eng, which ac­counts for over half of its dis­tri­bu­tion. Cou­pled with Pick n Pay start­ing to gain trac­tion (al­beit still no real move­ment on op­er­a­tional mar­gins), I won­der if it is time to switch re­tail­ers? For now, I am not chang­ing as I need some re­sults to de­cide if this is just a tem­po­rary set­back, or some­thing more se­ri­ous for Sho­prite.

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