PEPKOR LIMITED
Due to solid growth in like-for-like sales during the first three months of
the 2002 financial year Pepkor has grown market share significantly.
Pepkor MD Carel Stassen said at the company's AGM held in Cape Town
yesterday (Friday) that all three chains in the group - Pep and Ackermans in
Southern Africa and Best & Less in Australia - experienced solid growth in
their existing businesses despite continuing tough trading conditions in
their respective market sectors.
"Consumer spending did not increase during these three months and the retail
clothing trade in our market experienced virtually no inflation. Any
increase in existing business therefore represents a gain in market share."
Stassen said costs throughout the group were firmly under control while
stock manage-ment had improved compared to the corresponding period in 2001.
In addition, the chains were structured to operate with low overheads.
In the new financial year Pep continued to open stores in areas with a high
consumer density such as urban shopping centres, at the same time closing
outlets where the density was inadequate. So while a considerable number of
stores were opened, the total did not increase materially.
Pep also continued its efforts to improve the performance of its Africa
division, which incurred considerable losses in the 12 months to June 30
this year. This division consists of some 50 stores in Zambia, Malawi,
Mo ambique and Ghana, and represents about 4% of the chain's branch network.
Changes were made at senior management level while logistical and trading
systems were further improved.
Stassen said Ackermans continued its solid performance of the past, growing
steadily off a high base. "Unlike Pep, which over the past two years made a
strong return to profitability, the growth in Ackermans is less spectacular,
but no less laudable. Since the start of the new financial year Ackermans
has opened 15 new stores and is expected to add a further three in November.
Stassen said he was highly satisfied with the progress made by Best & Less
under its new managing director, Howard Goldberg. The chain's profits
declined sharply in the 2001financial year.
"We expect the chain to post substantially better results in 2002, although
it will be off a relatively low base. Our confidence in Best & Less is
evident from the fact that we will have opened eight new stores of at least
1 000 m} each by the end of December. That will bring its total number of
stores in Australia to 116," Stassen said.
ends
ISSUED BY : De Kock & Kerkhoff Communication Consultants
ON BEHALF OF : Pepkor
DATE ISSUED : Friday, 26 October 2001
MEDIA ENQUIRIES : Carel Stassen, Pepkor 021 933 5137;
cstassen@pepkor.co.za
Ben de Kock, DeK&K, 021 424 5280; ben@dkk.co.za
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