Big changes for Pick n Pay stores in South Africa
Pick n Pay has opened its first Hypermarket in Pietermaritzburg, with the new-look conversions underpinning the group’s store reset and rollout in the country.
The new Hypermarket in PMB is a conversion of the existing Pick n Pay Supermarket at Midlands Liberty Mall.
The retail group decided to upgrade the Liberty Mall store after a review of local shopping patterns and customer needs.
It said the new Hypermarket stores form part of Pick n Pay’s broader national turnaround strategy and “reset”.
Notably, the Liberty Mall Hypermarket is the first of several national revamps planned this year.
The group is planning Hypermarket conversions and new-look stores in Klerksdorp, Ottery, and Longbeach over the next two months.
Pick n Pay CEO Sean Summers said the group’s store reset programme is an important part of the turnaround, which is moving Pick n Pay SA back to profitability.
This includes converting under-performing stores, partnering with landlords to “right-size” locations, and investing in targeted refurbishments.
It also includes the conversion of some Pick’n Pay stores into Boxer brand stores, where suitable, as well as the closure of outlets that are loss-making or underperforming.
Reporting its results for the year ended 2 March 2025, the total number of Pick n Pay supermarkets, both company-owned and franchise stores, declined by a net of 45 stores to 570 supermarkets as of March 2025.
This includes 289 company-owned supermarkets and 21 hypermarkets, and 260 franchise supermarkets. A total of 15 Pick n Pay stores were converted to Boxer stores during the year.
Summers has been vocal about the retail footprint not being everything, insisting on driving profitability off a smaller base, rather than sinking costs into loss-making reach.
“We’re moving away from scale for its own sake, focusing instead on a smaller, more profitable, higher-quality store base,” Summers said.
“At the same time, we’re enhancing our customer offer with a sharper product mix, improved services, and stronger customer engagement to deliver a more competitive, customer-focused proposition.”
New format stores are key
Pick n Pay said the new Hypermarket format is central to its plans, aimed at delivering more value, greater variety, and convenience.
The Hypermarket aims to be a one-stop shopping experience, catering to a far larger customer base than just the immediate surroundings.
In the case of the Midlands Liberty Mall Hypermarket, this is to serve customers in Pietermaritzburg and the greater KwaZulu-Natal region.
“Whether you’re shopping for fresh produce, tech gadgets, or outdoor furniture – you’ll find it all under one roof,” the group said.
The new Hypermarket will introduce an expanded general merchandise section, including tech and appliances, DIY and tools, outdoor and garden essentials, home storage, toys, and kitchenware.
The fresh food offering has also been enhanced, featuring a gourmet butchery, frozen meats and fish, a biltong bar, and a convenient ‘Grab & Go’ counter with hot meals like burgers and boerewors rolls.
Shoppers can also expect a broader grocery range, with new additions such as bulk cleaning products, sweets, catering supplies, and pet care.
Pick n Pay is not alone in changing tactics in South Africa. Other retail groups are also narrowing their focus and pulling out of loss-making or tight-margin ventures.
SPAR has in recent years made a concerted effort to pull back and pull out of operations in Europe to focus on its South African operations.
Woolworths, which has seen great success with its Food stores, has also learned difficult lessons with its operations in Australia.
Even Shoprite, which is rapidly expanding in South Africa, has pulled back from operations outside of the country to focus on home.
Meanwhile, the big name retailers face stiffer competition with international players like Walmart entering the ring.
While Walmart has long had a presence in South Africa through Massmart—owner of Game and Makro—the group has announced plans to launch Walmart branded stores in the country for the first time.
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