Pick n Pay is beginning to show tangible improvements across several key performance indicators as it continues its turnaround efforts aimed at restoring profitability. The retailer has endured a turbulent period marked by the collapse of its Ekuseni strategy, substantial financial losses, and a state of technical insolvency.
In response, the group initiated a series of bold corrective measures, including the return of former CEO Sean Summers, a R4 billion rights offer, and the initial public offering (IPO) of Boxer, one of its most successful business units.
In its latest trading update for the 26 weeks ending 31 August 2025, Pick n Pay reported encouraging signs of progress. Group turnover increased by 4.9% year-on-year, with like-for-like sales growth of 4.7%, indicating a steady recovery in core operations.
Notably, Pick n Pay South Africa’s like-for-like sales rose by 4.3%, with momentum improving across all supermarket formats during the final two months of the reporting period. The group described this performance as “credible,” especially given the pressures on consumer spending and muted food price inflation.
The group continued executing its planned store closures and conversions, which slightly dampened overall turnover growth relative to like-for-like sales. However, this rationalization is part of a broader strategy to streamline operations and improve profitability.
Boxer, now a publicly listed entity, delivered another strong performance, with total turnover up 13.9% and like-for-like sales growth of 5.3%. The clothing division also showed resilience, with standalone store turnover rising 12.0% and like-for-like growth of 7.5%. Clothing sales moderated slightly in the latter part of the period as base effects normalized.
Online sales surged by 34.4%, driven by continued growth in Pick n Pay asap! and Pick n Pay groceries via the Mr D app, reflecting the group’s successful push into digital retail. Internal selling price inflation remained low at 2.1%, consistent with the full-year FY25 figure and significantly below the CPI Food rate of 4.6%, demonstrating disciplined pricing in a constrained consumer environment.
| Period | Previously published – 17 weeks ended 29 June 2025 (% growth) | Previously published – 17 weeks ended 29 June 2025 (% growth) | 26 weeks ended 31 August 2025 (H1 FY26) (% growth) | 26 weeks ended 31 August 2025 (H1 FY26) (% growth) |
|---|---|---|---|---|
| Metric | Turnover | Like-for-Like sales | Turnover | Like-for-Like sales |
| Pick n Pay (SA & RoA*) | 0.1% | 3.6% | 0.1% | 4.4% |
| Pick n Pay SA | 0.0% | 3.6% | 0.4% | 4.3% |
| Boxer (SA & RoA*) | 12.1% | 3.9% | 13.9% | 5.3% |
| Group turnover | 4.3% | 3.8% | 4.9% | 4.7% |
Despite operational improvements, the group is still expected to report a headline loss for the period. However, the loss is projected to be smaller than previously anticipated, thanks to:
- Improved trading performance in the Pick n Pay segment
- Continued strength in Boxer’s results
- A significant positive swing in net funding interest
This improvement was partially offset by the 34.4% non-controlling interest in Boxer following its IPO, which affects the group’s consolidated earnings. Additionally, the rights offer increased the weighted average number of shares in issue by 25%, from 587.54 million to 734.53 million, impacting the loss per share calculation.
| Metric | Expected Range of Improvement (% change) | 26 weeks to 31 August 2025 (H1 FY26) – Expected Range | 26 weeks to 25 August 2024 (H1 FY25) – Reported |
|---|---|---|---|
| Absolute earnings metrics | |||
| Headline earnings (Rm) | 40% – 50% | -479 to -399 | -803 |
| Per share earnings metrics | |||
| Earnings per share (EPS) | 45% – 55% | -77.39 to -63.31 | -140.83 |
| Diluted EPS | 45% – 55% | -77.38 to -63.31 | -140.67 |
| Headline earnings per share (HEPS) | 50% – 60% | -67.97 to -54.31 | -136.60 |
| Diluted HEPS | 50% – 60% | -67.96 to -54.31 | -136.44 |
