Good news for Pick n Pay

Pick n Pay has announced that its CEO, Sean Summers, has extended his contract with the retailer for another three years.

Summers will stay in his role until May 2028, which the retailer said will ensure continuity and stability in the leadership team during a period of significant strategic transformation. 

Pick n Pay said this will also allow for a considered and deliberate succession process, including a comprehensive handover period in due course.

“Under Sean’s steady and decisive leadership, the group has stabilised, executed a successful recapitalisation and began implementing a clear and actionable turnaround plan,” it said. 

“His leadership has enabled a renewed focus and alignment across the executive team.”

“The board is pleased that Sean remains committed and energised to continue leading the Pick n Pay turnaround and looks forward to his ongoing leadership over the coming three years.”

Pick n Pay also announced that James Formby, currently the retailer’s Lead Independent Director, will succeed Gareth Acerkman as chair of the board.

This comes after Ackerman announced his intention to retire as chair in May 2024. Formby will take over as chair effective from the conclusion of Pick n Pay’s Annual General Meeting on 5 August 2025.

Formby joined the Board in October 2022, following his retirement as CEO of Rand Merchant Bank. 

He was appointed as Lead Independent Director in July 2023 and has since played a key role in guiding the Pick n Pay turnaround strategy and overseeing the successful execution of the retailer’s two-step Recapitalisation Plan. 

“The board welcomes his appointment and looks forward to his continued leadership,” the retailer said. 

Formby currently also serves as the non-independent chair of Boxer, which was spun off from Pick n Pay and separately listed in November 2024.

Formby intends to step down from this position at Boxer at the end of the 2026 financial year, after which Summers will be appointed chair of Boxer. 

“The board extends its sincere thanks to Gareth Ackerman for his dedicated service as Chair of the Board over the past 15 years,” Pick n Pay said. 

“Gareth was instrumental in securing the return of Sean Summers as CEO – an important milestone in restoring Pick n Pay to its rightful place in the South African retail sector.”

Ackerman will remain on Pick n Pay’s board as a non-independent non-executive director. 

He will also continue to serve on the Remuneration Committee and will join the Finance and Investment Committee.

Summers a win for Pick n Pay

Summers is a Pick n Pay stalwart who worked for the retailer from 1974 to 2007 before re-joining the company in 2023.

He became managing director of the retail giant in 1996 and chief executive in 1999, taking over from founder Raymond Ackerman, which proved to be a great decision.

During his first tenure as CEO from 1999 to 2007, Summers made Pick n Pay the clear grocery market leader in South Africa.

Pick n Pay even outperformed Shoprite, Africa’s largest retailer, which was under the leadership of retail legend Whitey Basson.

In addition to Pick n Pay’s exceptional performance, Summers also acquired Boxer when he was in charge of the retailer.

After Summers’ departure, Pick n Pay started falling behind and became less competitive, which opened the door for Shoprite to become the market leader.

Pick n Pay’s performance continued to deteriorate, with the retailer becoming technically insolvent for the first time in its history.

To turn this situation around, the retailer approached Summers about returning to the CEO position and leading the group’s turnaround. Summers accepted and, in September 2023, took back the reins.

Under Summers’ leadership, the retailer embarked on an ambitious turnaround plan, which included a two-step Recapitalisation Plan.

These two steps were a R4 billion Rights Offer and Boxer’s unbundling and separate JSE listing.

The Rights Offer, which took place in August 2024, was a big success for the retailer. It was 106% oversubscribed, with total subscriptions reaching over R8 billion.

The company said 98.7% of shareholders followed their rights, and the retailer received R4.3 billion in excess applications.

Boxer’s listing was also seen as largely successful, marking South Africa’s biggest initial public offering (IPO) since 2017.

The retailer’s IPO concluded on 22 November, with 157.4 million shares being allocated to qualifying investors at a share price of R54. This raised R8.5 billion for its parent company, Pick n Pay.

These two steps put Pick n Pay in a significantly healthier position than prior to Summers’ return.

Therefore, Summers’ intention to stay with the group for another three years will likely be a boon for Pick n Pay.