Big changes for Pick n Pay

Pick n Pay has opened a new store in KwaZulu-Natal’s Westown Square, marking a significant milestone in the group’s turnaround strategy.

Pick n Pay has recently closed many stores across South Africa, shutting down poor-performing outlets as part of its ‘back to basics’ turnaround strategy.

Pick n Pay CEO Sean Summers previously warned that over 100 stores would close or be converted to Boxer stores as part of the turnaround.

The group closed 32 supermarkets, including 24 company-owned and eight franchise stores, in the 45 weeks ending 5 January 2025.

This comes amid the group’s poor financial performance. It posted a R3 billion loss in the 2023/24 financial year, with its core Pick n Pay grocery business performing poorly.

The group became technically insolvent, but was able to raise billions in cash via a two-step recapitalisation plan. This included a R4 billion rights offer and an IPO of Boxer worth R8 billion.

Following the recapitalisation, the group started focusing and streamlining its business, especially regarding the Pick n Pay brand, homing in on locations that would prove to be more lucrative.

The group has now opened a store in the newly launched Westown Square, which points to a further strategic focus as it looks to improve performance.

The 50,000 sqm Westown Square in Shongweni opened today and is the anchor of the new R15 billion Westown development between Durban and Pietermaritzburg.

The development is set to draw in an affluent consumer base, with the Square specifically targeting high-LSM clientele with upmarket offerings.

On top of opening a Pick n Pay store to be party of this, the group is also opening a Pick n Pay Clothing and Liquor store in the centre.

Big Changes

The new store is also a signifier of Pick n Pay’s turnaround in other ways.

It will have key features that Pick n Pay is incorporating into its refreshed store format to improve the customer experience.

This includes an expanded fresh produce section, an improved product range, and a stronger focus on convenience.

Westown Square store customers will be able to enjoy a vibrant, fresh produce area with farm-fresh fruits and vegetables. It will also feature a full-service butchery.

The improved in-store bakery also offers artisan breads, pastries, and cakes that are baked daily, while the deli offers several ready-to-go meals.

New features also include a sushi counter and The Roasty sit-down coffee bar. Pick n Pay Liquor will also offer an extensive range of wines, spirits and local craft beers.

“We’ve implemented several improvements in the Westown store that we are already rolling out as part of our targeted store revitalisation programme, which is currently underway,” said Summers.

“These features are designed particularly around freshness and our fresh produce areas, the variety offered to customers, and customer convenience at its core.”

“We have made enormous progress on resetting our store estate, which is fast, resulting in a much more efficient and customer-focused estate.”

He added that the bulk of the estate reorganisation is behind the group, and now it will focus on store revitalisation and opening strategically located new stores.

Several store improvements were part of the ‘Super Seven’ initiative. These seven stores received improved layouts, a more tailored product selection and intensive staff training.

The group said that these stores have shown incredible success, with some seeing sales growth of up to 100% and a positive trend in overall customer feedback.

Pick n Pay added that it is strengthening its customer partnerships as it accelerates its turnaround. It has become a tier-one sponsor with SA Rugby and is now the primary grocery partner for FNB eBucks.

“We are focused on the road ahead. While there is still work to do, we are making good progress and are excited to keep driving this momentum forward,” concludes Summer.

Westown Pick n Pay Images