Pick n Pay is applying a turnaround strategy after several years of poor performance driven by high costs, a failure to implement centralised distribution, and labour problems which have seen it lose market share to rivals.
"There may be all sorts of different reasons why the business finds itself more challenged than it has in the past. I don't think it's my place to look back, sometimes life is better understood looking forward. I hope my experience will give the company the confidence to press forward. I like a challenge. I like winning and competing. We are going to work hard to get our trading going ... our transformation in place. We will create an efficient and effective Pick n Pay for the future," he said.
Brasher, who takes up his role in February, is Tesco's former CE of UK operations. His appointment marks the first time Pick n Pay has appointed a CEO from outside its own ranks.
According to London-based Shore Capital analyst Clive Black, Brasher comes from great retail stock.
"He was part of the team that made Tesco one of the world's leading retailers. He is a very cerebral and likeable businessman who brings considerable intellect, experience and capability to Pick n Pay," Black said.
London-based Panmure Gordon analyst Philip Dorgan said Brasher was "very, very bright", adding: "I would back him to have a very big impact."
Although Pick n Pay has made sizeable investments to improve operating efficiencies, the company remains under pressure.
Last week it warned that headline earnings per share and diluted headline earnings per share from continuing operations would fall between 30% and 40% for the half-year to end-August.
Brasher said Pick n Pay had taken on "a fairly substantial" transition programme which was not without its challenges.
The head of research at Kagiso Asset Management, Abdul Davids, said a recovery in performance is expected in the second half of the financial year.
Commenting on the local scene, Brasher said SA's food retail sector was clearly a competitive market.
"I like it. Competition brings out the best in good operators. I know that with Wal-Mart turning up via Massmart, that's grown the level of interest in the market. I played against Wal-Mart in different countries - they're a good competitor, but a competitor who can be bettered so I'm not concerned on that front.
"I look at the work at Woolworths and Shoprite and I see things that are driving their businesses and I also see things that Pick n Pay will be able to compete on very capably," he said.
Source: Business Day
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