PEP Stores owner, Pepkor Holdings Ltd, yesterday announced that it will have 6 000 stores by the end of the year, with plans to add 71 stores over the coming months.
The company said it is further seeking to build a bigger market-share even as the country’s power crisis burdens both retailers and consumers.
Pepkor, who runs a chain of convenience stores, including affordable clothing store PEP and furniture store Rochester, have had to source back-up power or run diesel generators which has already cost the company some N$72 million on diesel for six months – an increase of 142%.
According to a Reuters report, the company lost around N$800 million in turnover, based on rough calculations, for the period due to power cuts, its chief executive Pieter Erasmus said.
In its interim results for the six months ended 31 March, released yesterday, the group, which owns household brands including Pep, Ackermans, Tekkie Town, and The Building Company, said its revenue increased by 4% to N$43,8 billion, but saw operating profit decrease by 9,8% to N$5,1 billion.
Headline earnings per share dropped by almost 12%.
Like-for-like sales decreased by 2%, weighed down by an 8,3% fall at Ackermans, while Pep grew sales by 0,5%.
The retailer flagged that during the period, intensified electricity load-shedding led to a staggering increase of close to 500% in lost trading hours, equating to 211 000 hours.
Pepkor said it was adapting by concentrating on its most robust brands and planned to add a further 71 stores in addition to 168 added in the first half of the year.
The company, which also operates in Mozambique, Zambia, Botswana, Namibia and Brazil, posted an 11,7% drop in half-yearly earnings yesterday.
Email: bottomline@namibian.com.na
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