U-turn for Pick n Pay in South Africa
Pick n Pay expects its losses to be significantly reduced and has ended its retrenchment process, as the retailer’s turnaround plan takes shape.
The iconic South African company was declared technically insolvent in 2024, leading to a leadership change and fears of potential retrenchments.
In a trading statement published on the Stock Exchange News Service (SENS), the group said it had withdrawn its Section 189A consultation process, a process largely associated with retrenchments.
The company said it had reached an agreement with its primary labour union, the South African Commercial, Catering and Allied Workers Union (SACCAWU).
“Shareholders are advised that Pick n Pay has reached an agreement with SACCAWU, its primary labour partner, marking a successful conclusion to the consultation process,” it said.
“As a result, the Company has formally withdrawn the consultation process initiated in terms of Section 189A of the Labour Relations Act.”
Pick n Pay ending the consultation process also comes as the company is anticipating reduced losses for its 2027 interim period.
The company expects its per-share losses to be between 33.77 cents and 40.52 cents, representing a 40% to 50% improvement over its last financial year.
The group also forecast its Headline Losses Per Share (HLPS) to improve by between 25% and 35%, moving to 38.85-44.83 cents.
It said the per-share improvements were due to improved profitability in the group, along with a strong performance from Boxer.
“The expected reduction in headline loss per share is the result of an improvement at the Group trading profit level, where Boxer delivered trading profit growth, and the Pick n Pay segment delivered a moderately reduced trading loss,” Pick n Pay said.
Pick n Pay has a majority ownership stake in Boxer, which has continued to report strong financial performance in recent years.
While the trading update is good news for the struggling retailer, it did note that its potential retrenchments had been difficult for many people.
It said it “recognises that the consultation process has been difficult for those affected and acknowledges the constructive and respectful manner in which our labour partners and employee representatives engaged throughout the process.”
Pick n Pay is expected to publish its full financial report for the 26 weeks ended 31 August 2026 on Monday, 26 October, which will provide clearer details on the withdrawal of the consultation process.
“Further information will be provided as part of our H1 FY27 results publication on Monday, 26
October 2026,” the company said.
Pick n Pay expected FY2027 interim results (cents)
| Six months ended 31 August 2026 | Six months ended 31 August 2025 | Change % | |
| Loss per share (EPS) | (-33.77) – (-40.52) | –67.53 | 40% – 50% |
| Diluted EPS | (-33.77) – (-40.52) | –67.53 | 40% – 50% |
| Headline loss per share (HEPS) | (-38.85) – (-44.83) | –59.77 | 25% – 35% |
| Diluted HEPS | (-38.85) – (-44.83) | –59.77 | 25% – 35% |
Loading ...