- Pick n Pay shuts 59 loss-making stores worth R4-billion in sales, cutting losses from R1-billion to R300-million.
- Boxer shines with 14% growth to R22.5-billion, helping lift results while the Pick n Pay brand stays under pressure.
Pick n Pay is finally showing signs of recovery after shutting down dozens of stores that were dragging the business down.
CEO Sean Summers said the closures, worth about R4-billion in sales, were tough but necessary to rebuild.
“We’ve taken about R4-billion of sales out by closing non-performing stores, but sales in the remaining ones are up,” he said.
The supermarket chain has closed a net 59 stores in recent months, with up to eight more expected to go. Summers said the focus is now on refurbishing and modernising stores in key areas, including the Waterfront, Sea Point and Canal Walk.
Pick n Pay’s latest results show group turnover grew 4.9% to R58.8-billion, while trading profit jumped 273% to R310-million.
The real winner was Boxer, which saw turnover grow nearly 14% to R22.5-billion and trading profit rise 16% to R931-million. Pick n Pay still owns most of Boxer, even after its JSE listing in 2024.
The main Pick n Pay brand remains under pressure, with turnover flat at R36.3-billion and a trading loss of R621-million. But Summers said that loss is an improvement and proof that the turnaround plan is working.
“It’s a good performance in a tough market,” he said. “We lost our muscle memory, but we’re rebuilding it.”
Pictured above: Pick n Pay.
Image source: Pick n Pay Investor Relations
