Ted Black: Pick ‘n Pay’s cash revolution: CEO Summers simplifies success in Africa
Sean Summers' return to PicknPay brings hope. Unlike mere financial engineers, he's a seasoned operator. Following in Raymond Ackerman's footsteps, he transformed the company. Ackerman's strategy of low-margin, high-ATO sales, with a cash focus, reaped returns. Summers faced challenges in the '90s but boosted ATO, ROS, and ROAM, propelling market value. Recent struggles tie to a delayed SAP system and IFRS16. While critics focus on accounting profit, Summers prioritises cash, emphasising the Cash-to-Cash Cycle. This approach, akin to Boxer stores' simplicity, could be PicknPay's key to success in a complex African business landscape.
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By Ted Black
It's good news that Sean Summers is back at PicknPay's helm. He's a well-seasoned operator, not a "financial engineer" or "professional" manager.Â
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