The Pick n Pay Group is a South African retail business that operates in the fast-moving consumer goods industry across 1,600 different locations. Pick n Pay Group operates three major brands namely Pick n Pay, Boxer, and TM Supermarkets.
The first four Pick n Pay stores were purchased by Raymond Ackerman in 1967 in Cape Town, South Africa. Since then, the Pick n Pay Group has grown to operate stores in South Africa, Namibia, Botswana, Zambia, Nigeria, eSwatini, and Lesotho.
In addition, Pick n Pay also owns 49% of the Zimbabwean supermarket chain, namely TM Supermarkets. Pick n Pay Group experienced exceptional growth from its inception, with the company seeing profits of more than R300,000 within its first year which doubled by the next year.
However, soon after, Pick n Pay Group started facing a significant amount of competition from rivals such as Checkers and OK Bazaar, with many more following in years to come.
If you invested in R10 000 in Pick n Pay in 2000, how much money would you have now?
Pick n Pay was listed on the Johannesburg Stock Exchange (JSE) in 1968 and the earliest price data indicates that the price for PIK shares was R10.75. With a R10,000 investment, you could have bought 930 PIK shares.
The current price on PIK shares is R58.33, which means that your investment would have grown to over R580,000, giving you an overall ROI of R570,000 or 5700%.
Despite the recent financial challenges that many businesses and the South African economy overall has faced with the Covid-19 pandemic, due to the nature of its business, Pick n Pay Group has shown solid performance in the past year, making it a promising investment choice for many investors.