Sales at food and general merchandise retailer Pick ’n Pay jumped 12.3% year on year to R26.6bn (£2.2bn) for the first half to August 31, 2009.

The company said its continuing operations have gained 0.4% of market share in the period, with significant gains in every fresh food category, adding that its revamped private-label offer delivered 26% sales growth.

Chief executive Nick Badminton said: “We expect the recent 5.5% reduction in interest rates and rapidly reducing inflation to ease the strain on consumers’ disposable income in the period ahead.”

Pick ’n Pay chairman Raymond Ackerman will retire at the end of the financial year, taking up an advisory role, and be replaced by his son, non-executive chairman Gareth Ackerman.