Tag: PnP

Source: Supermarket & Retailer

Pick n Pay has done away with its notice boards for the foreseeable future until it can figure out how the public can utilise the boards while protecting their personal information.

The Protection of Personal Information Act (POPI Act) or POPIA came into effect in July 2021, and all the implications of the new law still have to be figured out, according to Vaughan Pierce, GM and Group Legal Advisor at Pick n Pay.

Though customers may voluntarily put their information on the boards, there are no mechanisms to monitor and consent that they are voluntarily displaying their personal information, adds Pierce.

“POPIA aims to ensure that reasonable measures are put in place to ensure all personal information is protected,” says Pierce.

“There is not yet much precedent in answer to interpretation questions arising out of our interaction with the act, ” says Helene Viljoen an attorney, who specialises as a legal advisor on privacy issues.

Viljoen says, the act stipulates that the ‘data subject’ is the person to whom the personal information belongs. Information from the data subject can only be used should they consent to do so. The act also stipulates that the information should be used lawfully, and those who process it are then accountable for the lawful processing thereof.

It is assumed, as per the act, that the information being processed will be done so justly.

Notice boards commonly found in supermarkets and local stores are some of the more older forms of communication amongst locals in communities to advertise sales of services, goods, pets, to advertise flea markets, rentals and more.

“It is my opinion that anyone who makes their personal information publicly available by posting it onto a notice board, communicates it voluntarily and to the public, while indicating the limits that apply to such processing. It is then the duty of each person who processes that information to act accordingly,” says Viljoen.

As a data subject she believes that by availing your personal information to the public for use as advertised, you are providing a clear indication of your reasonable privacy expectations.

”Those who process my [your] phone number, must do so while heeding the conditions for lawful processing,” she adds.

This is merely an invitation for a person to contact about a sale, purchase of goods or services but not for them to exploit your information.

Unrest costs PnP almost R1bn

Supermarket group Pick n Pay (PnP) says the July unrest cost it R930-million in lost sales. The company is the first food retailer to report on the effect the July unrest had on performance, according to a recent article by MoneyWeb.

Highlights below:

  • Pick n Pay’s two largest distribution centres in KwaZulu-Natal (KZN) were looted
  • 212 stores or 10% of the group’s estate were damaged by the looting in KZN and Gauteng
  • The booze bans as a result of lockdown restrictions cost the company R800-million
  • Insurance will cover the some of the loss
  • PnP recorded subdued growth in sales of 4.1% to R46-billion and a 3.4% decrease in gross profit to R8.4-billion, lowering its gross profit margin to 18.2% of turnover for the six months ending August 29, 2021.
  • The group reported a 40% increase in headline earnings per share (Heps) in the period to 61.28 cents (2020: 43.78 cents).
  • This increase was underpinned by a strong performance by its Boxer and Clothing businesses, pleasing momentum in omnichannel offers and effective management of working capital and capital investment
  • The group’s online on-demand delivering service – asap! – has grown by 200% since it was launched in July

By Londiwe Buthelezi for News24

Pick n Pay says it lost R2.8 billion in sales because of trading restrictions and store closures during the six months to 30 August.

The retailer, whose first half of the 20201 financial year began just four weeks before South Africa went into lockdown, said liquor and tobacco sales decreased 47.5% over the period, while clothing sales in South Africa only shrank by 4.2%.

Still, the retailer managed to grow its turnover by 2.6% year-on-year, or 1% on a like-for-like basis when new stores aren’t factored in. Turnover from its South African operations increased by 3.4%, or 1.7% on a like-for-like basis. But core retail sales – which include food, groceries and general merchandise but exclude liquor, clothing and tobacco – grew 9.9% in the country, or 7.6% on like-for-like basis.

Growth of online

Pick n Pay said its online store doubled its sales growth during this lockdown, recording a 200% increase in active customers. Pick n Pay expanded its “Click n Collect” services to meet increased demand and launched an online store for its clothing offerings in August.

The group also announced on Tuesday that it has agreed to buy on-demand online grocery service Bottles. The acquisition is expected to be completed by November this year.

“This will enable Pick n Pay to build on the success it has achieved in partnership with Bottles in recent months, and further strengthens what is already sub-Saharan Africa’s largest and most popular online grocery business,” it said in a media statement.

Bottles was launched in 2016 as South Africa’s first alcohol on-demand delivery app, and partnered with Pick n Pay in 2018.

Pick n Pay added that it will continue to grow its online footprint through “a comprehensive suite of delivery options, including a pre-scheduled and standing-order delivery service, an expanded Click n Collect offer”, over and above its an on-demand essential grocery and liquor offer

Growing the clothing business

The retailer opened 11 new clothing stores during the lockdown period, but also closed six underperforming stores. Even though clothing retailers have been confronted by drastic change in consumer preferences and fashion – with the lockdown accelerating the move towards athleisure wear – Pick n Pay said it is confident that it will be able to grow its clothing business.

It plans to make “targeted investments” in stand-alone clothing stores and put in additional space for clothing in hypermarkets and supermarkets too. This comes at a time when Massmart is also expanding its offering in “value clothing” after closing the fresh food section in Game stores to make space for basic clothing instead.

PnP consumers use R1bn in food debt

Source: Supermarket & Retailer

Pick n Pay says it has granted R1-billion for its credit cards facility which was launched last year, in a scheme that allows customers to purchase food on credit.

“The figure refers to the total credit facility that has been granted. In fact, customers using our store card have taken up a small fraction of their total credit facility, well below R200m,” said David North, Group Executive, Strategy and Corporate Affairs.

The supermarket group on Thursday announced that 56 000 customers had taken up the store credit card since the product was launched in September 2017.

Debt counselling firm, Debt Rescue, described the staggering figure as “bad news” for consumers.

“What for many was clearly a last resort, the Pick n Pay credit line was clearly a last-ditch effort to feed their families,” said Debt Rescue CEO Neil Roets.

Pick n Pay came under criticism last year when it launched the product, with concerns that the facility would sink cash-strapped consumers further into debt.

The retailer has maintained that the card “offers the most affordable form of credit in the market, with a 55-days free credit payment option”.

Announcing the company’s annual financial results on Thursday, the firm stated that the creditwas accessed through the customer’s Smart Shopper card, “with the credit provider carrying all associated funding costs and credit risk”.

The card is operated in partnership with RCS.

Roets said the VAT increase which came into effect at the beginning of April, together with fuel price hikes had placed consumers in an “exceptionally difficult economic cycle” – with more than half of economically active people falling behind by three months or more in credit repayments.

Roets said at the time that Pick n Pay made the announcement to open store accounts for consumers, Debt Rescue made the point that food was the one commodity that cash-strapped consumers should try to buy with cash.

“It is far better to buy assets such as a house or a car on credit. Food is something that you definitely should not buy on credit. If you have to finance food, then you are in big trouble,” said Roets.

High-end food and clothing retailer, Woolworths, also allows customers to purchase food and alcohol on credit.

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