Annual Report




Our six capitals

Our ability to create long-term sustainable value for stakeholders depends on the use of various capitals within our business. The International Integrated Reporting <IR> Framework supports integrated financial reporting, and, in particular, the reporting of the Group's business model across these six forms of capital. Refer to "Our business model" on pages 20 to 21 for more information.




Social and relationship



Our key stakeholders

The Group is committed to open and constructive engagement with all our stakeholders. Our business model and strategy are designed to consider and address the issues and concerns most relevant to our key stakeholders. Refer to the "Engaging with our stakeholders" section on pages 38 to 41 for more information.







Our business acceleration pillars

The second stage of our strategic long-term plan is organised around seven business acceleration pillars. These pillars represent the material growth opportunities that can materially affect our ability to create value over the short, medium and long term. Refer to our "Strategic focus" section on pages 44 to 51 for more information.

Better for customers

A flexible and winning estate

Efficient and effective operations

Every product, every day

A winning team

a national brand

Rest of Africa – a second engine of growth



We trust that the 2018
integrated annual report
has achieved our objective of
providing you with a deeper
understanding of Pick n Pay –
of who we are, how we do
business and where we hope to
be in the future. We are committed
to building on and improving this
report next year and would
value your feedback.


We have adopted the International Integrated Reporting <IR> Framework (the framework) of the International Integrated Reporting Council (IIRC) which provides an international standard for integrated reporting that enables companies globally to demonstrate, in a comparable manner, how they create value. We have also applied the principles outlined in the King IV Code™ on Corporate Governance (King IV Code™). The Group is in full support of the voluntary principles and leading practices of King IV™, which become effective for the Group during the 2019 financial period.

This report covers the integrated financial and non-financial performance of Pick n Pay Stores Limited and its subsidiaries and associate (the Group) for the 52 weeks ended 25 February 2018, with relevant comparisons to previous periods, and is consistent with information and performance indicators included in internal management reporting. The report has been compiled and presented in line with the requirements and principles of all the applicable reporting frameworks. Refer to page 5 for further information.

Presented in this report is a range of financial and non-financial disclosures and performance measures to assist our stakeholders in making an informed and objective assessment ofthe Group's overall performance in 2018. Non-financial disclosures provided in this report are specific to our Pick n Pay-branded, company-owned business in South Africa. It is our intention to expand these disclosures in future in order to provide a comprehensive view of the social, human and environmental impacts of the Group as a whole.


The report contains certain forward-looking statements which relate to the possible future performance and financial position of the Group. All forward-looking statements are solely based on the views and considerations of the directors. These statements involve risk and uncertainty as they relate to events and depend on circumstances that may or may not occur in the future. The Group does not undertake to update or revise any of these forward-looking statements publicly, whether to reflect new information, future events or otherwise. These forward-looking statements have not been reviewed or reported on by the Group's external auditors.


The Board, assisted by the audit, risk and compliance committee, is ultimately responsible for overseeing the integrity of the integrated annual report. This has been achieved by establishing skilled and experienced teams and accountability structures to undertake the reporting process and by performing a thorough review of the report.

The content of the integrated annual report has been reviewed by the directors and management, but has not been externally assured. The annual financial statements have been audited by Ernst & Young Inc. (EY) who expressed an unmodified audit opinion thereon. Accredited service providers and agencies have verified selected non-financial performance metrics contained in the report, including our carbon footprint and the BBBEE rating, while management has verified the processes for measuring all other non-financial information.


We are committed to achieving the highest standards of global best practice in reporting, and continue on our journey to implement these standards within the Group. In our ongoing effort to improve our reporting, we have made some changes to the structure and presentation of information, particularly in respect of the presentation of our business model and the additional insight provided into how we create value and our remuneration reporting. We will continue to engage with all stakeholders to ensure that we improve year on year.

It has become best reporting practice for an integrated annual report to include summarised financial information, with a complete set of audited financial statements, prepared in terms of IFRS, published separately. This report therefore does not contain the full audited Group annual financial statements, which have been made available on our website at

Any comments or requests for additional information can be emailed to our Company Secretary at


To align with the increasing trend towards online reporting and electronic access to information, we do not distribute printed copies of our integrated annual report, but rather make it available online on the Group's website at

Printed copies of the integrated annual report are available on request from our Company Secretary, Debra Muller, at or by fax at +27 21 797 0314.

The audit, risk and compliance committee has reviewed the 2018 integrated annual report and recommended it for approval to the Board of directors.
The directors confirm they have collectively reviewed this report and approved it for release to stakeholders on 22 June 2018.
They further agree that this report provides a fair representation of the financial position of the Group as at 26 February 2018 and its performance
for the related 52-week period. The directors consider the report to be presented in accordance with the <IR> Framework.

Gareth Ackerman

Bakar Jakoet
Chief Financial Officer

Suzanne Ackerman-Berman
Executive director

David Robins
Non-executive director

Hugh Herman
Independent non-executive director

Audrey Mothupi
Independent non-executive director

Jeff van Rooyen
Independent non-executive director

Richard Brasher
Chief Executive Officer

Richard van Rensburg
Chief Information Officer

Jonathan Ackerman
Executive director

David Friedland
Independent non-executive director

Alex Mathole
Independent non-executive director

Lorato Phalatse
Independent non-executive director