Say goodbye to Pick n Pay as you know it

Pick n Pay is looking forward to a future without an Ackerman family member at the helm, with the family’s control over the company coming to an end this year. 

Yesterday, 5 August, was the last annual general meeting (AGM) to be hosted by an Ackerman, with the family giving up 3% of its voting rights during Pick n Pay’s rights issue last year. 

Gareth Ackerman, son of founder Raymond, used his last chairman’s address to reflect on the journey he and his family have been on through their ownership of Pick n Pay. 

Up until the rights issue, the Ackerman family fundamentally controlled the retailer, with 52% of the company’s voting rights. This now sits at 49% and the family no longer has the right to nominate the chairman, CEO, and CFO immediately. 

The family will retain a presence on the company’s board and is still the most influential shareholder in the retailer. 

“This is a significant moment for me, personally, as it is my final AGM as chair of Pick n Pay,” Gareth Ackerman said in his final chairman’s address. 

“FY2025 was a defining year for Pick n Pay. The successful rights offer and the Boxer listing were two of the most significant capital market events in our history.” 

However, instead of dwelling on the company’s current performance, Ackerman chose to reflect on the past and how Pick n Pay grew to become a retail powerhouse. 

Founded in 1967 by Raymond Ackerman, Pick n Pay has grown from four small stores in Cape Town into a food retailing giant that operates over 2,200 stores across multiple countries. 

Ackerman’s family has a rich retailing heritage. His father, Gus Ackerman, founded the iconic Ackermans clothing retail chain in 1916. 

After cutting his teeth at Ackermans, Raymond managed Checkers, growing it from four stores to 85. Spotting an opportunity to be his own boss, he snapped up four Pick n Pay stores in Cape Town in 1967 from Jack Goldin. 

Ackerman grew the retail chain aggressively, launching its first Hypermarket in 1975 and choosing to franchise the brand in 1993. 

Working closely with current CEO Sean Summers in his first stint, Ackerman pioneered the acquisition of Boxer Superstores in 2002. This has proven to be a highly lucrative investment for the retailer. 

In 2003, Ackerman would also return to his roots and launch the first franchised Pick n Pay Clothing store. As with Boxer, this has become an extremely valubale asset for the company. 

From father to son 

After 43 years at the helm, Raymond Ackerman stepped down as Pick n Pay chairman, handing over the reins to his son Gareth.

Gareth Ackerman’s time at the helm of Pick n Pay has been tumultuous in comparison to the period under his father, which has ultimately resulted in the family giving up its hold over the retailer. 

“When I stepped into the chair role 15 years ago, I knew it would be a privilege, but I didn’t realise how deeply I’d come to value the people, purpose, and potential of this business,” Ackerman said. 

“Together, we navigated significant challenges, took bold decisions, and laid the foundations for a stronger, more agile Pick n Pay.” 

Ackerman recounted some of the principles his father passed down to him as he geared him up to take the chairman’s reins. 

“Raymond was deeply admired for his ability to see not just what was, but what could be. He transformed the retail landscape in South Africa by reaching for the stars with his feet firmly on the ground.”

It was always going to be difficult for Gareth Ackerman to fill his father’s shoes at Pick n Pay, notwithstanding the extremely difficult operating environment for a retailer in South Africa. 

During the younger Ackerman years, Pick n Pay fundamentally transformed, becoming a fully-fledged modern retailer in its competition with Shoprite. 

Ackerman took the lead in moving the retailer from a decentralised business with 500 stores into a unified, modern retailer with one team, one strategy and one shared purpose. 

“This shift has been fundamental in enabling the recovery now underway across our 2,500 stores,” Ackerman said. 

“Today, the energy in the business is vibrant. Over the past two years, we have regained our momentum. We are focused on execution, and thanks to the extraordinary leadership of Sean Summers and his team, we are seeing real progress.” 

The turnaround 

Ackerman recalled Summers to the helm after a disastrous stint under Pieter Boone, where Pick n Pay tried to stratify its offering across multiple market segments. 

Summers was tasked with turning around Pick n Pay’s fortunes after years of lacklustre sales growth and taking on Checkers, which was taking market share from its competitors after Shoprite repositioned the business. 

This state of affairs was a far cry from the Pick n Pay of old, particularly under Summers, whose first tenure as CEO ran from 1999 to 2007.

Under Summers, Pick n Pay was the clear grocery market leader in South Africa. It even outperformed Shoprite, Africa’s largest retailer, which was under the leadership of retail legend Whitey Basson at the time.

However, after Summers’ departure, Pick n Pay began to fall behind and became less competitive, which opened the door for Shoprite to become the market leader.

Pick n Pay’s performance continued to deteriorate, reaching a low point in May 2024, when the retailer reported being technically insolvent for the first time in its listed history.

Upon his return, Summers was transparent about Pick n Pay’s dire situation but also committed to turning the retailer around and restoring it to its former glory.

“I think if we apply our minds correctly, we can come back and carve back its place in the marketplace,” he said at the time.

“It’s about putting that passion back into the business, and that passion has to be shared by everybody. Every associate in the business should feel that same love and sense of belonging.”

This plan included a two-step recapitalisation strategy to address Pick n Pay’s debt problem. First, the retailer introduced a rights offer, and second, it unbundled and listed its Boxer business separately.

During the rights offer, Ackerman Investment Holdings (AIH), run by the Ackerman family, agreed to forego its majority shareholder voting control of Pick n Pay. 

The family gave up 3% of its voting rights to support Pick n Pay in its transformation, taking its share down to 49%. 

The market reacted positively to the news, as it was seen as an important part of changing the perception surrounding the company, Summers said after the announcement.