Pick n Pay set to report another huge loss

Pick n Pay is set to report an even bigger headline loss in its 2026 financial year compared to 2025, with both its core supermarkets segment and clothing business having come under pressure.

The retailer attributed this to a weaker performance from its core segment in the 22 weeks ended 1 February 2026, which was reportedly the result of a highly constrained market.

Its core supermarkets segment, in particular, came under pressure due to the retailer’s store-closure plan, which focuses on closing or converting underperforming stores.

This comes as Pick n Pay has been implementing a turnaround strategy under CEO Sean Summers, who took over in 2023 following years of decline in the retailer’s performance.

While the retailer is implementing a strategy to improve its financial and operational performance, Summers previously warned that this turnaround would take time.

After market close on Monday, 9 February, Pick n Pay released a trading update for the 48 weeks ended 1 February 2026 and the 52 weeks ended 1 March 2026.

This update showed that Pick n Pay’s turnover for the 48-week period grew by 3.2%, or 3.4% on a like-for-like basis, the retailer’s preferred indicator. 

This was driven largely by a strong performance from Boxer, a discount retailer that was unbundled and listed separately from Pick n Pay in 2024, though the retail giant retained a majority share.

Boxer saw turnover growth of 11.9%, or 3.9% on a like-for-like basis. 

In contrast, Pick n Pay’s core segment, its Pick n Pay South African division, saw a 1.4% decline in turnover, or growth of 2.9% on a like-for-like basis.

The company attributed this to the now largely completed, planned closure or conversion of underperforming company-owned supermarkets. 

Positively, the retailer noted that its online turnover growth for the 48-week period was 31.8%, driven by the continued growth of its on-demand delivery platform, Pick n Pay asap!, as well as Pick n Pay groceries on the Mr D app.

Its clothing segment did not perform as well, with standalone stores growing turnover by 4.9%, or 0.4% like-for-like. 

“The clothing market was exceptionally challenging over the last few months of the period, which resulted in a year-on-year decline in turnover and like-for-like sales for the last 22 weeks,” the company said. 

However, the company pointed out that PnP Clothing has a strong base over multiple years compared to its peers, with the retailer reporting like-for-like growth of 10.7% and 3.8% for the second half of its 2024 and 2025 financial years, respectively.

Overall, Pick n Pay warned shareholders that its headline loss per share for the 2026 financial year is expected to be more than 20% worse compared to 2025.

The retailer attributed this to the below-expectation turnover in the period, “the result of a highly constrained market, particularly over the extended Black Friday period”.

“While the expected FY26 loss is a disappointment, the group notes the substantial on-the-ground operational improvements that have been achieved to date, and that the Pick n Pay segment’s trading profit recovery will not be linear,” the company said. 

“Despite the macro challenges, the group continues to deliver on the strategic initiatives designed to return the Pick n Pay segment to profitability.”

Pick n Pay’s financial results are expected to be published on or about 25 May 2026.