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2022-08-01

Pick n Pay is embarking on an aggressive rollout of its clothing stores, with 73 more coming

Grocery retailer Pick n Pay is embarking on an aggressive store rollout of its standalone clothing stores after the division posted strong sales growth.


Ntando Thukwana | Business Insider SA

The retailer plans to open 73 more Pick n Pay Clothing stores during its 2023 financial year, it said in a trading update for the 18 weeks to 3 July 2022.

"The acceleration of our… clothing store opening plans is proceeding well. Pick n Pay Clothing has 73 new store openings confirmed for FY23," it said on Tuesday.

Its store expansion plans come as the clothing division reports stellar sales growth of 17.1% year on year.

The retailer added 27 new clothing stores during the previous financial year, three times less than what it plans for its 2023 financial year. The new store additions will help grow the retailer's clothing store base to about 350 stores.

In its 2022 annual report, Pick n Pay said it invested R1.7bn to grow clothing by expanding it, opening new stores, delivering customer value propositions, and enabling 'Project Future' initiatives.

Pick n Pay, which sells its clothing merchandise out of more than 460 sites, sees its clothing division as a strategic growth engine. It sells its apparel mainly in dedicated standalone stores, its supermarkets, and hypermarkets. The standalone stores  typically carry a broader range than in the supermarket format.

Pick n Pay Clothing has been enjoying steady growth and has managed to grab market share across several women's, men's, and children's wear categories. Its clothing sales saw two years of compounded annual growth of 11.7%. It said online clothing sales more than doubled over a year, also boosted by its online retail platform Zando.

Over the years, Pick n Pay has been growing its list of local suppliers for its clothing business. As a result, local sourcing now represents 40% of Pick n Pay Clothing's sales.

This has enabled the retailer to collaborate with local designers and entrepreneurs and reduced its lead times while ensuring high levels of product availability, Pick n Pay said.

Pick n Pay's Boxer stores are also one of the retailer's key engines of growth, and the retailer plans to add 61 new stores from more than 365 stores.

"Boxer is on track for 61 FY23 new store openings (vs. 36 in FY22). Boxer continues to grow ahead of the market and is progressing well on its plan to double sales by the end of FY26," the retailer said in its trading update.

The retailer aims to position Boxer as Africa's "discount champion".

Overall group sales increased 10.7%, while the domestic operations grew sales by 10.5%, the retailer said.

 


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