Business

Another loss for Pick n Pay as it closes 19 more stores in South Africa

Jonathan Hoyle

 ·26 Oct 2026

Pick n Pay has narrowed its losses in the interim period for its 2027 financial year, as it continues to close stores and focus on its turnaround—now expecting to return to profit in 2029.

The retail giant reported a gross profit of R6.4 billion for the six months ended 31 August 2026, 3.9% higher than last year’s interim period.

Despite higher gross profit, Pick n Pay still reported a headline loss for the first half of the year of R299 million.

This was 31.9% lower than the R439 million headline loss recorded in the same period for 2025/26.

The retailer reported a trading loss of R621 million, which it reduced to R516 million in the first half of 2027, a 16.9% improvement.

The improvement comes as Pick n Pay works on a turnaround plan it launched in 2024, when the company was declared technically insolvent.

As part of the turnaround plan, Pick n Pay continued to reduce its footprint, aiming to reduce its exposure to underperforming stores.

This resulted in the closure of 19 supermarket outlets over the last 12 months, bringing the retailer’s total to 520.

Like many other South African retailers, Pick n Pay saw strong growth in its online shopping segment, which increased its turnover by 35.4%.

The company said the integration of its clothing segment into the Pick n Pay ASAP! app aided this turnover growth by performing better than anticipated.

“The launch of Pick n Pay Clothing in the asap! app was successful, delivering well ahead of budgeted turnover,” the retailer said.

For the six months ended 31 August 2026, Pick n Pay reported a total turnover of R36.4 billion, slightly below the previous year.

For investors, the group’s Headline Loss Per Share (HLPS) shrank by 31.9% from the previous interim period to 40.71 cents.

Due to its headline losses, the company did not declare a dividend and does not expect to until it returns to profitability.

Pick n Pay interim financial results

A new operating model

As part of its turnaround efforts, Pick n Pay previously said it would revise its labour model to ensure profitability.

The retailer said this process has now been completed following consultations with several labour unions and other partners.

“Pick n Pay successfully concluded its Store Labour Model consultation process last week, reaching an agreement with its primary labour partners,” the retailer said.

“The agreement establishes a more flexible, efficient and sustainable store labour model, with implementation commencing on 1 November 2026.”

“This is expected to strengthen Pick n Pay’s competitiveness as it works to restore sustainable profitability.”

Pick n Pay CEO, Sean Summers, said the conclusion of this process will create certainty for its employees and ensure the business is competitive.

“We are pleased that we have reached an agreement through the formal consultation process,” Summers said.

“This puts us on a more competitive footing, helps secure jobs, provides greater certainty for our employees and creates a stronger platform for future growth.”

He said Pick n Pay had performed well to establish fundamentals, despite a difficult economic backdrop in South Africa.

“We have put the fundamentals in place, and they are delivering, despite the constrained trading environment,” he said.

“Notwithstanding these market challenges, we have delivered a strong like-for-like performance in our company-owned supermarkets, ahead of competitors, and with further benefits to come”.

The retailer is aiming to break even in its 2029 financial year, with its recent loss reduction reaffirming this goal.

“We must now build on this progress, further improve the customer experience and deliver the sustained sales growth and operational improvements needed to return Pick n Pay to profitability,” Summers said.