Pepkor CEO talks on Africa strategy & how the business is responding to COVID-19

Pepkor, a leading retail company, has recently announced its decision to close down 13 stores in Uganda as part of its exit strategy from Eastern Africa. Leon Lourens, the CEO of Pepkor, cited a lack of significant potential in the region as the reason behind this move. The company had initially planned to expand into Eastern Africa, including Kenya and Tanzania, but has now reconsidered its strategy. Despite facing challenges due to the COVID-19 pandemic, Pepkor managed to increase its revenues, although its bottom line was impacted. The uncertainties caused by the pandemic, coupled with concerns about the government's financial injections into the economy, pose challenges for the company's future outlook. However, Pepkor has successfully strengthened its balance sheet by reducing its debt, positioning itself well for any potential setbacks in the future. The shift towards online learning in the education sector has raised questions about the future demand for school uniforms and stationary, which are key products for Pepkor. While the company acknowledges the potential impact of online learning on traditional back-to-school shopping patterns, it remains optimistic about a normalized return to school activities in the near future. Despite the challenges posed by COVID-19, Pepkor is focused on adapting its business strategies to navigate the changing market dynamics and emerging trends. The company's resilient approach and commitment to strengthening its financial position reflect its determination to overcome the current challenges and thrive in the post-pandemic world.