A year in the life of Pick n Pay under CEO Sean Summers

Pick n Pay’s latest results showed steady progress in its turnaround plan. It improved the efficiency of its operations and made the group leaner and more profitable.

Pick n Pay released its financial results for the 53 weeks ending 2 March 2025 on Monday. The results showed that the company solved its debt challenges and drove like-for-like sales.

It was the first full-year results after Pick n Pay implemented its turnaround strategy under chief executive Sean Summers.

Summers, who served as Pick n Pay CEO from 1999 to 2007, returned to the retailer in 2023 after it became clear that the company was in serious trouble.

The Ackerman family approached Summers for assistance, and he agreed to take over as chief executive again and restore Pick n Pay to its former glory.

The first of its six strategic priorities was to recapitalise the group. It raised R12.5 billion through a R4 billion rights offer and the Boxer listing, which raised another R8.5 billion.

The second priority was to improve like-for-like sales. The latest results showed promising growth at Pick n Pay company-owned supermarkets.

The third priority was to reset its store estate. Pick n Pay closed numerous stores with no prospect of returning to profitability, while others were converted to Boxer stores.

Pick n Pay has also started opening and committing to new stores and will increasingly refurbish its supermarkets to meet and exceed customer expectations.

The fourth pillar is leadership and people. It trained staff to improve customer experience and reinstated regional leadership structures.

The fifth pillar is strengthening partnerships. It partnered with FNB e-Bucks, which has already helped attract customers across all segments.

The sixth pillar is innovation, adaptability and income diversification. It has shown 48.7% growth in online sales for the 53 weeks, led by asap! and PnP groceries on Mr D.

Pick n Pay ASAP! has grown to 600 locations, and franchisee adoption of ASAP! has doubled in two years. The launch of the new ASAP! App further unlocked new growth potential.

Pick n Pay Clothing delivered 11.6% growth from standalone stores over the last financial year and reported market share gains.

Pick n Pay Clothing opened net 30 company-owned stores during the year, bringing the total estate to 415 stores.

“When I returned in October 2023, I stated that the recovery of Pick n Pay would be a multi-year process and that things would get worse before they got better,” Summers said.

“We sense that we see this unfortunate chapter now bottoming out, and we have recalibrated our recovery programme to break even in FY28.”

Pick n Pay Group numbers over the last financial year

The Pick n Pay Group did not experience much growth over the last financial year. It increased its turnover by 3.2% from the 52-week period in 2024 to the 52-week period in 2025.

The lacklustre turnover was primarily due to the number of Pick n Pay stores decreasing over the reporting period.

Forty loss-making Pick n Pay supermarkets closed or converted. This included closing 25 company-owned supermarkets, converting seven to franchises, and converting eight to Boxer.

Despite low turnover growth and the deteriorating profitability within Boxer, the Pick n Pay group improved its performance.

It reported a healthier balance sheet from technical insolvency in 2024 to reporting positive equity of R11 billion in 2024.

The gross profit margin improved from 18.1% to 18.8%. Its operating profit margin improved from 0.4% in 2024 to 1.5% in 2025, and its net loss margin improved from -2.9% to -0.6%.

Although the group still reported a net loss, it has shown significant improvement in efficiency within the group.

Although it is still far from reporting strong growth and positive profit, Pick n Pay is moving in the right direction.

Pick n Pay Stores

Pick n Pay stores’ revenue declined over the last year. Pick n Pay Stores South Africa’s turnover fell by 0.3% from R74.9 billion to R74.6 billion.

Pick n Pay Stores in the rest of Africa saw its turnover fall by 5.6% from R3.6 billion to R3.4 billion.

The drop in turnover can be explained by net store closures over the 2025 reporting period, which saw Pick n Pay stores decrease their overall footprint.

Boxer

Boxer displayed respectable growth in its turnover, increasing it by 10.38% from R37.4 billion to R41.3 billion. This comparison was over a comparable period of 52 weeks.

However, Boxer’s profitability has not improved in line with its turnover growth. Its operating profit margin fell from 6.5% to 6.3%, and its net profit margin fell from 3.7% to  3.4%.

Boxer increased its footprint by 48 stores, which explains the strong turnover growth. However, it has been unable to keep its expenditure down to convert its revenue growth into higher profits.