- Pepkor says group revenue grew by 13.9% to R53.9 billion for nine months ended 30 June.
- Pep and Ackermans retail space expanded by 3.2% year-on-year with 56 new store openings.
- Pepkor's share price climbed almost 4% following the trading update.
Pep and Ackermans owner Pepkor said it grew group revenue by 13.9% to R53.9 billion for the nine months ended 30 June 2021.
In a trading update, the group said its clothing and general merchandise segmental revenue for the nine-month period increased by 14%.
The group said according to Retailers' Liaison Committee (RLC) data Pep and Ackermans continued to grow market share on a 12-month rolling period, although at a slower rate following the high base and significant market share gains achieved since May 2020.
Pep and Ackermans sales for the nine months increased 15.5% compared to the corresponding period's like-for-like sales growth of 13.3%. Retail space expanded by 3.2% year-on-year with 56 new store openings during the third quarter.
Pep Africa, which consists of operations in Angola, Malawi, Mozambique, Nigeria and Zambia, saw a sales increase of 14% and like-for-like sales increased by 16.5% in constant currency terms for the period.
The group said, with a sales growth of 21.5% and like-for-like sale growth of 18.1% for the corresponding period, the specialty business continued to benefit from strong consumer demand for casualwear and branded footwear. Specialty brands include Tekkie Town and Shoe City but excludes John Craig which was sold to independent retailer, Blue Falcon.
Trading in the JD Group, which includes HiFi Corporation and Bradlows, continued to benefit from strong consumer demand for household goods and consumer electronics, said the group. Sales were driven by strong growth in cash and lay-by sales. JD Group had a 27.1% sales growth compared to a like-for-like sales growth of 29.3% for the period.
The Building Company had a sales growth of 25.9% as it continued to benefit from a positive sales trajectory in the building materials market, although classified as a discontinued operation. The Competition Commission prohibited the sale of The Building Company to Cashbuild.
Pepkor said the Competition Tribunal will consider the transaction to dispose of The Building Company after its sale to Cashbuild was prohibited on grounds that the takeover will create a dominant supplier of building materials and squeeze out competition, however, the timing of the Competition Tribunal hearing has not been confirmed.
The group said a total of 529 stores across the group were impacted by the unrest in parts of the country last week. "Stores were burnt, looted or damaged to varying degrees. This represents approximately 10% of the group's total retail store base," said Pepkor. Additionally, one of the JD Group's distribution centres in Cato Ridge, KwaZulu-Natal, was looted.
All distribution operations have recommenced from Monday 19 July and plans were put in place to service JD Group stores in the affected areas through its other distribution centres.
Following the trading update, Pepkor's share price climbed 3.56% in early afternoon trade.