South African retail Group, Pick n Pay stated on Thursday that its turnover was significantly affected by the ban on the sale of alcohol and other products for the better part of the year which led to an estimated R4 billion loss in sales.
In an update the retail group stated that its financial performance for the year fell almost within the heightened period of the COVID-19 pandemic which resulted in a 4.3% turnover.
Pick n Pay lost 209 liquor trading days over the financial year, with reduced trading hours for all but three weeks of the financial year. The sale of cigarettes and other tobacco products was banned between the period of march and August.
According to the analysis of its sales performance in the area of food and grocery sales and general merchandise categories, delivered a market-leading sales performance in its core food and grocery offer in South Africa, accelerating growth from 9.9% in the first half of the year to 10.1% in the second half.
During the lockdown, clothing sales increased to 1.3 per cent year-on- year.
The Group said R100 million was paid in once off compensation to employees who volunteered for the voluntary severance program in Pick n Pay in the first half of the financial year.
The group expects the headline earnings per share for the year to reduce between 15 per cent to 25 per cent when it releases its year-end results on the 21st of April.
