JOHANNESBURG – Pick n Pay is still in the red, but its turnaround plan is starting to pay off.
The retailer has managed to narrow its losses while showing signs of recovery, helped by strong sales at its Boxer stores and tighter cost controls.
The retailer released its interim results for the 26 weeks ended August 31 Boxer, partly owned by Pick n Pay, continues to be a key driver of the group’s performance.2025 on Monday, reporting a headline loss of R439 million, which is less than R804 million loss it reported last year.
While trading profit increased to R310 million from R83 million, group turnover increased 4.9 per cent to R58.8 billion.
“These results demonstrate that our turnaround is gaining traction, and we remain on track with each of our strategic priorities,” said Pick n Pay Chief Executive Officer (CEO), Sean Summers.
“Like-for-like sales growth has accelerated, our customer numbers are growing, and Boxer continues to outperform. Importantly, Pick n Pay Supermarkets’ market share has stabilised, notwithstanding the reduction in the size of our supermarket estate under our Store Estate Reset programme, a clear sign that we are on the right path.”
The retailer highlighted that the improved result was driven by a R227 million trading profit increase, in conjunction with a R537 million positive net funding interest swing, as the full benefit of the 2025 financial year recapitalisation was realised in Group earnings.
The results show that Pick n Pay’s online business continues to grow at a pace, with turnover for the period increasing by 34.4 per cent. Turnover of the on-demand online grocery platforms, asap! and PnP groceries on the Mr D app, grew 44 per cent yearonyear.
Pick n Pay Clothing turnover growth in standalone stores was 12.0 per cent. “Clothing momentum moderated in the last two months of the period as the earlier softness in the base normalised,” reads the results.
Boxer, partly owned by Pick n Pay, continues to be a key driver of the group’s performance.
Trading expenses increased by 4.8 per cent, driven by the Boxer store rollout. “As consolidated by the Group, Boxer turnover grew 13.9 per cent year-on-year to R22.5 billion and trading profit grew 16.2 per cent year-on-year to R931 million.”
The group plans to invest R2.2 billion over the full financial year, with a focus mainly on Boxer’s expansion and Pick n Pay Clothing. Capex on Pick n Pay Supermarkets will be prudently allocated to customer-facing initiatives and strategic store revamps.
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