Connecting the dots – Pick ‘n Pay (PIK)

In our “Connecting the dots” series we raise new, sometimes anecdotal evidence which, on its own, may not be sufficient to justify a change in forecasts or recommendations. However, we believe investors should be aware of these new data points, as it may supplement their existing analysis.

A recent visit to the PIK Benmore store in Johannesburg revealed a number of early morning stock-outs which we think may reflect some supply chain issues in the Gauteng DC. In addition, we observed what we think is non-routine promotional activity, which could indicate more challenging market conditions.