| Mon 15 Nov 2010, 12:37 | | PIK - Pick n Pay Stores Limited - Restructuring at Pick N Pay |
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PIK
PIK
PIK - Pick n Pay Stores Limited - Restructuring at Pick N Pay
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa
(Registration number: 1968/008034/06)
Share Code: PIK ISIN code: ZAE000005443
RESTRUCTURING AT PICK N PAY
Company positions itself for further strategic change
Pick n Pay today announced a major structural change to the executive management
of the group. CEO Nick Badminton said that the changes were required in order to
streamline the company`s operations with a firm focus on customer sovereignty,
efficiency and area specialisation.
The current Exco, Retail Management Board and Group Enterprises Board are being
consolidated into a Group Executive that will be responsible for the Marketing
and Sustainability, Buying, Operations, Supply Chain/IS, Franchise, Group
Enterprises, Finance, HR, Transformation and Customer portfolios.
"These changes form part of a wider programme to improve our business over the
coming years and are a key part of our overall strategy for the future," said
Badminton.
"Over the last three years, we have made significant improvements to Pick n Pay.
We`re a very different company to the one we were in 2006, notably the fact that
we are a more focused operation. We`ve converted the Score stores to Pick n Pay
outlets and announced our intention to sell our Franklins operation in
Australia. We`ve also made significant improvements to our customer offer. Our
fresh food is vastly improved in terms of range. Our private label brands have
been redeveloped and repackaged. We have launched a small store format and
increased our footprint in the high-potential LSM 4-7 market.
"We also have made substantial investments in becoming more efficient. We have
completed the rollout of SAP, launched central distribution in the inland region
and embarked on a programme to reduce the cost of those items we purchase but do
not sell on to customers.
"Importantly, we have made huge strides in becoming a more responsible and
sustainable business and have recently announced our intention to commit zero
waste to landfill by 2015 and to reduce our carbon emissions substantially."
Badminton confirmed further changes as part of the announcement. A specialised
category-based buying function will be implemented to ensure that each element
of the offer is developed with deep understanding of customer needs. Marketing
will assume a more strategic responsibility for developing offer guidelines in
addition to its traditional advertising and public relations work. An
integrated supply chain team will be established to implement the national
supply chain strategy and ensure efficient flow of product to stores. All of
these changes will help to support the stores in delivering exceptional customer
service.
Chairman Gareth Ackerman said: "Nick has put together a structure that will
enable the company to focus firmly on the future. The new structure is
streamlined and focused, allowing individuals to concentrate on their respective
areas of specialisation and expertise. It aligns very well with the three
principles of Consumer Sovereignty, Doing Good is Good Business and Business
Efficiency. This restructuring is an important part of the total strategy of
Pick n Pay. It positions us very well for the future."
For further information, please contact Tamra Veley on 083 251 3658.
By order of the board
Cape Town
15 November 2010
Sponsor: Investec Bank Limited
Date: 15/11/2010 12:37:00 Produced by the JSE SENS Department.
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