Tobacco and Alcohol Ban Dent Pick ‘n Pay Sales

The South African government might have eased the sale of tobacco and alcohol on level 2, however some retail companies have been financially dealt a blow, hence many of them are currently exhausting all possible recuperation outlets.

One such retail company is, Pick ‘n Pay. The sales severely dwindled during the banning of Tobacco and Alcohol sales in South Africa from level 5 to 3. Reportedly, on 2 March 2020, the company suffered a 47,5% knock in sales, this was a few days before many retailers were prohibited to sell select items of clothing, alcohol and tobacco.

As a result of having complied with the health regulations and measures during the national lockdown, Pick ‘n Pay has incurred additional costs of R150 million in total. Some of these expenses include hygiene and safety equipment, appreciation bonuses for front line workers, communication and security.

Additional expenses that have caused a financial dent at Pick ‘n Pay is the severance programme, which is alleged to have cost a whopping R100 million.