Pick n Pay is coming after what Woolworths is known for
Pick n Pay is aiming to build its presence in the fresh food sector, a market that Woolworths is also looking to centre its business around.
In an interview with Alec Hogg for Biznews, Pick n Pay CEO Sean Summers said the fresh food industry would be a major part of the company’s future growth.
“Fresh is going to be vital for us,” Summers said. “A huge part of our growth at the moment is coming out of fresh, which is where we want to be.”
In its latest interim results, Pick n Pay’s supermarket turnover declined by 0.1%, largely due to its net disposal of 19 stores in this segment.
While turnover has reduced, like-for-like sales in its company-owned stores increased by 2.4%, while franchise stores saw a 1% rise in the same metric.
While its supermarket segment saw like-for-like sales growth, Pick n Pay clothing saw this sales growth decrease by approximately 0.7%.
The sales growth shows that the supermarket business is a key area for Pick n Pay, particularly its fresh food business.
In its last financial results, Woolworths shared a similar goal: to grow in the food business and anchor its other segments around it.
Food is the retailer’s largest segment, contributing more than half of the business’s total turnover in its last financial year.
Reorienting the business around this segment could make it more attractive to investors and help reduce performance volatility.
PSG Wealth equity analyst Fisokuhle Mbutho recently told DailyInvestor that this restructuring of Woolworths’ business approach could help its medium-term earnings.
He said the plans could enable the retailer’s food business to increase capital expenditure and create greater earnings stability and growth.
“Its importance to the group has been to be less volatile in earnings growth relative to the other more discretionary segments,” he told Daily Investor.
The right man for the job
Pick n Pay recently appointed Spencer Sonn as its CEO-designate, who will take over from Summers in May 2028.
Sonn previously worked with Woolworths in several key positions, including as managing director of its food division.
Speaking to Biznews, Summers said Sonn’s experience in Woolworths’ food division would be helpful for Pick n Pay.
“Spencer had a very good career at Woolworths, where he was on for six years as managing director of fresh, which will certainly be good for us at Pick n Pay,” he said.
He highlighted that Sonn’s work with Woolworths’ overseas operations would be an asset when he takes over as Pick n Pay’s CEO and that it was a large part of why he was tapped for the role.
“Spencer had a wonderful time in New Zealand for five or six years, and very tough years because that business is also under a lot of pressure,” he said.
“Had he not had that experience, we might not have been having a conversation.”
Sonn will assume the role of CEO-designate in February 2027, working with Summers to ensure a smooth leadership transition.
When Sonn’s appointment was announced, Pick n Pay said this timeline would provide ample time for the transition.
The company said his appointment in February 2027 will provide “ample time for Sonn to settle into executive leadership and work with Summers on the company’s turnaround.”
Sonn said at the time that he was looking forward to being involved in the company and helping in its turnaround efforts.
“I am looking forward to playing my part in continuing the turnaround and being part of the family,” he said.
Pick n Pay has operated at a loss in recent years, since being declared technically insolvent in 2024, and aims to reach break-even status by 2029.
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