Pick n Pay’s saving grace

Pick n Pay recorded meagre sales growth for the 17 weeks ended 29 June 2025, with a strong performance from Boxer and the retailer’s clothing segment offsetting a weaker supermarkets segment.

These strong performances have given Pick n Pay the room to implement the next stage of its turnaround plan, with current efforts focused on repositioning its core supermarkets brand in South Africa.

The retailer is in the midst of implementing its turnaround plan, with CEO Sean Summers previously having warned that there would be no “quick wins” for Pick n Pay in this process.

The first part of this turnaround included a two-step Recapitalisation Plan involving a R4 billion Rights Offer and Boxer’s unbundling and listing, which raised R8.5 billion.

Both of these steps were completed in 2024 and were considered highly successful, as they allowed Pick n Pay to significantly reduce its debt and restore the company to a net cash position.

Now, the retailer has turned its attention to addressing operational issues in the business, with growth remaining slow.

In a trading statement released on Tuesday, 5 August, Pick n Pay provided an update on its performance in the 17 weeks ended 29 June 2025.

This update revealed that group turnover grew by 4.3%, with like-for-like sales up 3.8%.

Pick n Pay said it views this as a “creditable performance” in the context of a highly constrained consumer and continued subdued food price inflation.

The retailer’s South African operations grew like-for-like sales by 3.6% in the period, recording internal selling price inflation of 1.8%.

Company-owned Supermarkets, which represent the majority of Pick n Pay South Africa’s sales, saw like-for-like sales growth reach 4.0% for the period.

The retailer explained that the implementation of its Store Estate Reset Plan, which will result in some store closures and conversions, resulted in turnover growth lagging like-for-like sales momentum.

However, this weaker growth was offset by a strong performance from Boxer, which saw turnover grow 12.1%, with 3.9% like-for-like sales growth. While Boxer was spun off and separately listed in 2024, Pick n Pay retains a majority share.

Another strong performer in Pick n Pay’s performance over this period was its clothing segment. This division saw turnover in standalone stores grow by 17.3%, with like-for-like sales growth of 12.5%. 

The retailer said its clothing segment benefited from both strong execution and a soft base in the comparative period.

In the same period in 2024, Pick n Pay’s clothing segment took a hit from port delays and a late start to winter, providing a lower comparative base for the 2025 results. 

The retailer expects clothing turnover momentum to soften somewhat as the base normalises in the second half of its 2026 financial year.

The group’s online division, which operates through Pick n Pay asap! and Mr D, also recorded strong growth in the period, with sales up 33%.

Overall, Pick n Pay said it is pleased with Boxer’s continued strong performance, and the steady like-for-like sales traction in its South African Supermarkets segment. 

“Further to this, the group is making ongoing progress with the Pick n Pay segment’s Store Estate Reset Plan and the Future Fit Structure initiative, which will contribute to the achievement of the medium-term break-even objective of the Pick n Pay segment,” the retailer said.