Pick n Pay shutting down stores to break even
Pick n Pay is proceeding with planned store closures and conversions as it tries to make its core grocery business profitable again.
In a trading update for the 17-week period to 29 June 2025, the Pick n Pay Group said that there was a steady improvement from Pick n Pay Supermarkets and another strong performance from Boxer.
The group’s turnover increased 4.3%, with like-for-like sales up 3.8% against last year’s same period. Pick n Pay South Africa (SA) like-for-like sales for the period grew by 3.6%.
The group said this was a credible performance in the context of a highly constrained consumer and subdued food price inflation.
The group’s Store Estate Reset Plan resulted in turnover growth lagging like-for-like sales momentum, which resulted from the planned store closures and conversions.
The group said that the closures and conversions are expected to contribute to achieving the medium-term break-even objective of the Pick n Pay segment.
The group declared an over R700 million loss for the 2024/25 financial year, with the Pick n Pay trading loss of R549 million.
Company-owned supermarkets, which represent the majority of PnP SA sales, continue to show steady consecutive improvement when it comes to like-for-like sales growth.
Like-for-like sales growth reached 4.0% for the period, up from 3.1% in H1 FY25 and 3.6% in H2 FY25.
“Like-for-like sales across franchise supermarkets softened slightly during the period under review, but this has improved in recent weeks,” it said.
“The group expects to report improved Franchise Supermarket like-for-like sales for the full H1 FY26 period, showing positive momentum and narrowing the gap with company-owned stores.
Boxer turnover for the period grew by 12.1%, with 3.9% like-for-like sales growth. Pick n Pay maintains a roughly 65% stake in Boxer.
Clothing turnover growth in standalone stores, reported within the Pick n Pay segment, for the period was 17.3% (12.5% like-for-like sales).
Clothing benefited from both strong execution in the period and a soft base in the comparative period due to port delays and a late start to winter last year.
The group expects clothing turnover momentum to soften somewhat as the base normalises in the second half of FY26.
Online sales growth for the period was 33.0%, driven by the continued growth of Pick n Pay ASAP!, and Pick n Pay groceries on the Mr D app.
| Like-for-Like Sales Growth | 26 weeks H1 FY25 | 26 weeks H2 FY25 | 17 weeks ended 29 June 2025 |
|---|---|---|---|
| PnP South Africa | 1.1% | 3.1% | 3.6% |
| PnP SA Supermarkets | 1.3% | 2.7% | 2.8% |
| PnP SA Company-owned Supermarkets | 3.1% | 3.6% | 4.0% |
| PnP SA Franchise Supermarkets | -1.4% | 1.1% | 0.2% |
| PnP Clothing standalone stores | 0.2% | 3.8% | 12.5% |
| 17 weeks ended 29 June 2025, % growth | Turnover | Like-for-like sales |
| Pick n Pay (SA & RoA*) | 0.1% | 3.6% |
| Pick n Pay SA | 0.0% | 3.6% |
| Boxer (SA & RoA*) | 12.1% | 3.9% |
| Group turnover | 4.3% | 3.8% |
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