Pick n Pay continues closing stores across South Africa

Pick n Pay’s latest interim results saw the retailer continue making a loss, as nearly 60 store closures significantly impacted its turnover.

CEO Sean Summers previously warned that the company’s ongoing turnaround would take time, with the retailer having expected its losses to continue.

However, Pick n Pay’s overall results saw a substantial boost from Boxer, which the company still owns a majority stake in after spinning off and separately listing the discount retailer in 2024.

On Monday, 27 October, Pick n Pay released its interim results for the 26 weeks ended 31 August 2025, marking the first half of its 2026 financial year.

The retailer’s turnover grew by 4.9% to R58.8 billion, driven mainly by Boxer’s standout performance of 13.9% turnover growth to R22.52 billion.

While Pick n Pay still contributed the lion’s share of turnover, at R36.30 billion, this reflects turnover growth of only 0.1%.

The retailer said this lacklustre growth was due to a reduction in the company’s store estate, which decreased by a net 59 company-owned and franchise supermarkets year-on-year.

Pick n Pay pointed out that its store estate reset programme is now largely complete.

“Going forward, any further changes to our store estate will simply be a normal part of assessing each stores performance as leases come up for renewal,” Summers said,

“Critically, the optimisation of our store estate has removed a large number of loss-making stores out of the system, allowing us to serve our customers better and to support our long-term sustainable growth.”

The company further reported a 273.5% improvement in trading profit to R310 million, with Boxer having contributed profit of R931 million, dragged down by Pick n Pay’s R621 million trading loss.

Notably, this trading loss from Pick n Pay is a 13.5% improvement from the prior half-year. 

Overall, Pick n Pay reported a loss for the period of R323 million, which is an improvement from the R827 million loss the retailer reported in the first half of its 2025 financial year.

The company’s basic loss per share also improved by over 50% to 67.53 cents per share. The retailer attributed these improvements to its recapitalisation in 2024, which significantly reduced the company’s debt.

Due to the retailer’s headline loss for this six-month period, Pick n Pay’s board did not declare an interim dividend.

It explained that, while the group is now well capitalised, its board does not expect to declare any dividends until the group has returned to sustainable profitability.