Pick n Pay set for another loss amid store closures

Pick n Pay is set to report a significantly improved loss for the first half of its 2026 financial year, driven by a strong performance by Boxer and a somewhat improved result at its core supermarkets business. 

This represents some progress in the struggling retailer’s turnaround, with it slowly beginning to bear fruit in the form of stronger like-for-like sales growth. 

The retailer expects to post a headline loss of between R399 million and R479 million, a 40% to 50% reduction on the R803 million loss posted during the same period last year. 

“The expected reduction of the headline loss is driven by a somewhat improved Pick n Pay segment trading result, a strong Boxer trading result, and a large positive swing in net funding interest,” the retailer said in a statement. 

Pick n Pay’s results on a per share basis were also impacted by an increase in the company’s share count as a result of its August 2024 rights offer.

It said the performance of the company for the six months ended 31 August reflected steady like-for-like sales growth from its Pick n Pay segment and a strong performance from Boxer, in which Pick n Pay holds a 65.6% share. 

Turnover for the period increased by 4.9% with like-for-like sales up 4.7% against the same period last year. 

Pick n Pay said like-for-like sales showed improved momentum across all of the company’s supermarket formats in the last two months of the period. 

“The Group views this as a credible performance in the context of a highly constrained consumer and continued subdued food price inflation,” it said. 

Pick n Pay South Africa’s like-for-like sales for the period grew 4.3%. Implementation of the planned store closures and conversions resulted in overall turnover growth lagging like-for-like sales momentum. 

Company-owned supermarkets, which represents the majority of Pick n Pay’s South African business showed a steady performance, with like-for-like sales up 4.8%. 

Boxer turnover for the period grew 13.9%, with 5.3% like-for-like sales growth. 

Clothing turnover growth in standalone stores, which is reported within the Pick n Pay segment, for the period was 12.0% (7.5% like-for-like sales growth). 

Clothing momentum moderated in the last two months of the period as the earlier softness in the base normalised. 

Online sales growth for the period was 34.4%, driven by the continued growth of Pick n Pay asap! And Pick n Pay groceries on the Mr D app. 

Pick n Pay South Africa’s internal selling price inflation for the period was 2.1%, in line with the 2.1% reported for the past financial year, and well below headline food inflation of 4.6%.

The performance of the retailer’s various segments can be seen in the table below, followed by an outline of its expected financial performance when it reports its interim results on 27 October.