"It's going to be tough. But there will be some opportunities. I think our LSM 8 to 10 customers, who usually go overseas for holidays, will stay this year," said Badminton.
He said the tough conditions were reflected in the 26% growth in sales of Pick n Pay's own "value for money" label brands.
The group increased its turnover by 12.3% to R26.6bn during the six months to end-August, compared with same period last year.
Headline earnings per share (100c) were 11.1% higher. Badminton said he would be happy if the group could report 11% growth in full year earnings.
He noted that a number of factors had a significant impact on the earnings growth.
"Importantly, electricity costs soared and look set to escalate further. These costs grew markedly from 3.1% of expenses for the six months ended August 08 to 3.8% of costs for this period. The impact of Eskom's increases is expected to result in a 40% increase in our electricity bill for the full year, with more to come in subsequent years.