The basis for reporting segmental financial information has been changed to accord with IFRS 8: Operating Segments.  
Previously, segmental information was provided on a geographic basis, reflecting only the southern African operations and the Australian operation. With the implementation of IFRS 8, operating segments were identified based on financial information regularly reviewed by the Pick n Pay Stores Limited Board (identified as the Chief Operating Decision Maker (CODM) of the Group for IFRS 8 reporting purposes) for performance assessments and resource allocations.  

The Group has 5 operating segments, as described below, with no individual customer accounting for more than 10% of turnover.  
Pick n Pay – all retail operations, retailing food, clothing, general merchandise, pharmaceuticals and liquor under the Pick n Pay brand throughout southern Africa.  
Boxer – all retail operations, retailing food, general merchandise and liquor in southern Africa under the Boxer brand.  
Franklins – our retail operation retailing food and general merchandise in New South Wales, Australia.  
Score – all retail operations, retailing goods and services under the Score brand. Score Supermarkets retail operations have been closed down and the results of which are disclosed as a discontinued operation.  
Pick n Pay Insurance Cell Captive – the insurance cell captive provides insurance services, from insurance cover to claims maintenance for Group entities.  

The South African operating segments are mainly retail operations (with the exclusion of the insurance cell captive) which are reviewed independently of each other by the CODM, due to the individual operations being operated through separate subsidiary companies under the management and guidance of separate management boards. The Australian retail business operates in a different market from other Group operations and thus faces different risks and economic conditions while serving a different customer base. As the Pick n Pay and Boxer operating segments have demonstrated similar economic characteristics they have been aggregated in terms of IFRS 8. Information regarding the operations of each reportable segment is presented below. Performance is measured based on the segment profit before tax, as management believes that such information is most relevant in evaluating the results of the segments against each other and other entities that operate within the retail industry.