Pick n Pay announces retirement of CEO credited with retailer's turnaround
Pick n Pay has announced that Richard Brasher will retire as CEO in April.
The former Tesco (UK) executive had planned to move on after eight years at the helm, but delayed his retirement because of the Covid-19 pandemic.
Brasher said the past year in particular had been the most unforgettable of his long career.
"He has almost doubled Pick n Pay’s store network, and has grown turnover from R55 billion when he joined the company (in 2013) to almost R90 billion." said chairman Gareth Ackerman in a statement.
Brasher will be replaced by Netherlands-born Pieter Boone, former COO of multinational Metro AG.
Pick n Pay has heaped praise on the outgoing CEO, but how well did the company perform during his tenure compared to its competitors?
Bruce Whitfield interviews Evan Walker, Portfolio Manager at 36ONE Asset Management.
Where he performed beyond expectations is he inherited a very mediocre supermarket division and over the last couple of years... the new revamped Pick n Pays are a lot fresher-looking... That's really where he has succeeded.Evan Walker, Portfolio Manager - 36ONE Asset Management
Unfortunately during that period a lot of competitors have moved on and become a little bit more sophisticated... and have taken market share away from Pick n Pay even with these revamped store base.Evan Walker, Portfolio Manager - 36ONE Asset Management
In terms of share price appreciation Spar have done incredibly well; they found avenues for growth. Likewise, Clicks...Evan Walker, Portfolio Manager - 36ONE Asset Management
Walker points out that Pick n Pay invested heavily in Australia, saying it exited ten years too late.
That amount of invested capital really did mean that the South African balance sheet for Pick n Pay didn't have a lot of expansion opportunities, and they were way behind the curve on central distribution which has taken a lot of capital over the last eight years.Evan Walker, Portfolio Manager - 36ONE Asset Management
That's a mammoth task from a computerisation point of view and profiling your store base - that's a huge task which he's obviously got in place now for his successor...Evan Walker, Portfolio Manager - 36ONE Asset Management
Listen to Whitfield and Walker discuss the trend of bringing in foreign CEOs to run local retail businesses:
This article first appeared on 702 : Pick n Pay announces retirement of CEO credited with retailer's turnaround
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