Pick n Pay enters a new phase

Pick n Pay has begun the next phase of its turnaround strategy, which will make its store employees more efficient and productive.

On Monday, 4 May 2026, Pick n Pay initiated a Section 189A consultation process with the South African Commercial, Catering and Allied Workers Union (SACCAWU).

This consultation process involves store-based employees within the non-management bargaining unit. It excludes support office employees and management structures.

The consultation will focus on labour flexibility and the total cost of employment for specific store-based staff.

It will address guaranteed hours and certain benefits and allowances, particularly those above market rates. The proposal does not envisage reducing hourly wage rates.

The intent is not to reduce employees, but rather to implement a store labour model that balances competitiveness with responsible employment.

“It is aimed at enabling stores to better respond to customer shopping patterns and service needs,” Pick n Pay said.

The retailer explained that the Section 189A consultation process is aimed at improving flexibility and operational efficiency.

It is needed to ensure the business remains responsive and competitive in a rapidly changing retail environment.

Pick n Pay CEO Sean Summers said certain aspects of their current labour arrangements are above market norms and out of line with shopping trends.

These include things such as minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances.

“The proposed adjustments are needed to bring the retailer’s labour practices more into line with its competitors to compete on an even footing,” Summers said.

“With more customers shopping later in the day and on weekends, a more adaptable staffing approach is required.”

Important part of Pick n Pay’s turnaround journey

Summers said that the latest intervention is an important part of their turnaround journey, which began two years ago.

“We have taken a deliberate, phased approach, focusing on stabilising the business to achieve sustainable competitiveness,” he said.

“We have made significant structural and financial changes, including adjusting our holding structure and listing Boxer to reduce debt.”

Pick n Pay has also reset its store estate, restructured its support offices, and implemented a salary freeze for support office staff.

“At the same time, we focused on rebuilding sales through stronger marketing and promotions, and by improving the in-store experience,” he said.

Summers said they must now address the reality that their current store labour model has been out of balance in the marketplace for some time.

“These structures have become increasingly complex, reducing flexibility and our ability to respond to retail trends and customer demands,” he said.

“If we are to compete on an equal footing in an increasingly constrained marketplace, we can no longer sustain structures that are materially above market norms.”

He said that this problem needs to be addressed to return the business to profitability and protect Pick n Pay from future risks.

“Our goal is to ensure that Pick n Pay can grow again, open more stores and continue to provide work for people in the future,” he said.

“To achieve this, we must stay competitive, be financially viable, and serve our customers in the way they choose to shop.”