Checkers taking over Pick n Pay stores across South Africa

Shoprite Checkers is taking over numerous Pick n Pay stores across South Africa. Pick n Pay is closing struggling stores, and Shoprite is rapidly expanding.

Over the last year, Pick n Pay has been closing poor-performing stores as part of its ‘back-to-basics’ turnaround strategy.

Last year, Pick n Pay CEO Sean Summers announced that 112 Pick n Pay stores would either close or be converted to Boxer franchised stores.

In the first 21 weeks of the financial year, Pick n Pay closed 16 supermarkets, including four corporate stores and 12 franchise stores.

In its results for the 26 weeks ended 25 August 2024, Pick n Pay revealed that it had closed over 54 franchise and company-owned stores.

South African shopping centre owners have also announced that they were cutting down on Pick n Pay stores.

In September 2024, Redefine Properties, which owns many of South Africa’s top shopping malls, announced that it is taking back 10,000 square meters from Pick n Pay.

By taking back space from Pick n Pay, shopping malls aim to increase the rent they receive for the space and add value to shoppers.

In many cases, Shoprite and Checkers outlets take over the retail space which Pick n Pay vacates.

Shoprite and Checkers are rapidly expanding their retail footprint, while Pick n Pay is scaling back to strengthen its financial performance.

The opposing strategies had led to Shoprite Checkers taking over several Pick n Pay stores, which had closed.

At the start of 2024, Shoprite opened eight new supermarkets at sites previously occupied by Pick n Pay on the East Rand.

One of these supermarkets is a Shoprite store, while the remaining seven are branded as Checkers stores.

In October 2024, Shoprite Checkers bought the liquor business, which trades as Pick ‘n Pay Liquor Store, owned by Van Riebeeck Park Foodlane.

In December 2024, News24 reported that Shoprite had launched three new supermarkets at former Pick n Pay sites in Gauteng.

SA Corporate Real Estate also announces a shift

Last month, SA Corporate Real Estate announced that it was replacing Pick n Pay supermarkets with Checkers and Shoprite stores in some of its properties.

SA Corporate is a JSE-listed Real Estate Investment Trust (REIT) with a diversified portfolio of quality industrial, retail and residential buildings.

The company owns over 150 properties across South Africa with a gross lettable area of over 1.4 million square meters.

SA Corporate’s retail portfolio includes Musgrave Centre, East Point Shopping Centre, Umlazi Mega City, Springfield Value Centre, and Bluff Towers.

“Our retail portfolio focuses on convenience-oriented shopping centres, with a tenant mix that emphasises defensive categories,” it said.

Pick n Pay is its biggest retail tenant and contributes 9.2% to SA Corporate’s rental contribution, much higher than Spar’s 3.8%, Woolworths’ 3.2%, and Shoprite Checkers’ 3.1%.

In its 2024 year-end pre-close update presentation, SA Corporate shared a strategic leasing update for its retail space.

It announced that the Pick n Pay supermarket in Montana Crossing will be replaced with Checkers Emporium in Q3 2025.

The Checkers emporium will include Checkers Fresh-X, Pet Science, Checkers Liquor and Checkers Outdoor.

It will also replace the Pick n Pay QualiSave in the Springfield Value Centre with a Shoprite store in the second quarter of 2025.

The company will also replace the Pick n Pay supermarket in Coachman’s Crossing with a bespoke butchery and deli.