Business

Pick n Pay’s golden child opening 60 new stores in South Africa

Jonathan Hoyle

 ·12 Oct 2026

Discount retailer Boxer reported strong results for its last interim period, as it continues to be a big winner for its parent Pick n Pay.

The retail company saw its overall turnover increase by 6.3% to R24.1 billion in the 26 weeks ended 30 August 2026.

It also reported an 8.1% increase in its trading profit to R1 billion, and a profit before tax and capital items of R774 million

The strong financial performance was despite a difficult trading environment for South Africa’s retail sector, according to Boxer.

The company said the trading environment over the last interim period was characterised by “a constrained consumer and continued selling price deflation”.

South Africa’s inflation has increased on several occasions in recent months, often exceeding the Reserve Bank’s 3% target.

In August 2026, inflation rose by 4.4%, slightly higher than the previous month, with the largest single-month increase of 5% in June.

The high inflation, largely driven by rising fuel prices, has dampened consumer spending in the country and led to interest rate hikes.

The combination of higher fuel costs and constrained consumers has created a difficult environment for several South African companies, but Boxer was able to operate effectively despite this.

Along with performing well financially, the retailer continued to expand its footprint, reaching the 600-store milestone.

This was achieved after the retailer opened 24 stores over the last six months, with nine superstores and 15 liquor stores.

The strong momentum in expansion continued beyond the reporting period, with Boxer noting that it opened an additional eight stores in September 2026.

“The Group is on track to achieve its target of opening 60 new stores for the full year FY27, which will support turnover growth from new stores in the second half and beyond,” the company said.

“As at 30 September 2026, Boxer had opened 32 new stores year-to-date, up from 24 at the end of H1.”

Good news for Pick n Pay

Boxer’s strong financials are good news not only for the company but also for its majority shareholder, Pick n Pay.

The South African retail giant held approximately 65% of Boxer’s total shares at the start of the year, but reduced its stake in May 2026.

On 18 May 2026, Pick n Pay announced that it would sell 57.3 million ordinary Boxer shares, representing 12.5% of the company’s total issued ordinary shares.

The sale was undertaken to support Pick n Pay’s turnaround strategy, generating approximately R4.7 billion following years of hardship for the company.

Interestingly, while Pick n Pay is the majority owner of Boxer, it has a lower market value than the discount retailer despite having a significantly larger footprint in South Africa.

According to Google Finance, Pick n Pay currently has a market capitalisation of R14.75 billion, while Boxer’s market cap sits at R37.83 billion.

While Pick n Pay has struggled to stabilise in recent years, Boxer has continued to perform well and grow its revenue.

Boxer CEO, Marek Masojada, said the company has performed well due to its philosophy of providing value to underserved communities in South Africa.

“We want to keep delivering great value, and we will do that by continuing to invest in price, expanding our store footprint to underserved communities, and maintaining a disciplined approach to costs,” he said.

He added that the second half of the financial year has been positive for the company, but economic challenges remain for South Africa’s retail sector.

“We have seen some improvement in trading momentum in the four weeks since the end of the reporting period, which gives us confidence as we enter the second half of the year,” he said.

“We continue to see strong demand for the value we offer, but are mindful of the broader economic environment, elevated oil and diesel prices, and the uncertainty around food inflation.”

Boxer Retail interim financial results