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<\/a><\/figure>\n\n\n\nThe decision to expand Boxer\u2019s presence comes on the heels of its strong sales and trading performance.<\/p>\n\n\n\n
Over the first half of the fiscal year, Boxer stores reported an impressive 12% growth in sales and a 16% rise in trading profit. <\/p>\n\n\n\n
Pick n Pay noted that in addition to delivering solid sales figures, Boxer has consistently expanded its market share by catering to the demand for affordable essentials, quality groceries, fresh produce, and basic commodities. <\/p>\n\n\n\n
The group added that Boxer has positioned itself as a high-performing brand in the competitive soft-discount market with its attractive value proposition. <\/p>\n\n\n\n
The expansion plan includes opening 53 more Boxer stores in the second half of the fiscal year, which Pick n Pay expects will drive substantial revenue growth.<\/strong><\/p>\n\n\n\n Boxer\u2019s robust growth has translated into a significant contribution to the Group\u2019s overall store openings.<\/p>\n\n\n\n In the six-month interim period, Pick n Pay added 29 new company stores, with 12 of these being Boxer outlets.<\/p>\n\n\n\n The company closed 21 stores over the same period, with Boxer accounting for only one of those closures.<\/p>\n\n\n\n Notably, Boxer\u2019s expansion added 4.3% to total sales growth, reflecting its role as a key engine of growth within the Group.<\/p>\n\n\n\n While the number of total group stores reduced between February and August 2024, Pick n Pay\u2019s leadership remains optimistic.<\/p>\n\n\n\n CEO Sean Summers expressed confidence in achieving financial stability in the second half of the fiscal year, driven by ongoing efforts to close loss-making stores, convert some outlets to franchises or Boxer stores, and make further improvements in its digital and clothing segments. <\/p>\n\n\n\n Summers noted that the store consolidation efforts have already yielded positive results, with some stores initially slated for closure becoming profitable through improved management and efficiency measures.<\/p>\n\n\n\n He also hinted at new store openings within the supermarket category before the end of 2024, indicating the company\u2019s commitment to strategically enhancing its store estate.<\/p>\n\n\n\n Despite its successes, Pick n Pay still faces challenges in its traditional retail segment. <\/p>\n\n\n\n The retailer\u2019s trading profit increased to R82.5 million from R31.8 million in the prior year, underscoring the impact of strategic efforts to stabilize core operations. <\/p>\n\n\n\n However, gross profit margins declined by 0.6% to 17.9%, influenced by aggressive competitive pricing strategies and higher operational expenses. <\/p>\n\n\n\n Boxer, in contrast, generated a healthy trading profit of R801.4 million, while the Pick n Pay segment recorded a trading loss, up 9.1% to R718.9 million. <\/p>\n\n\n\n This loss is attributed to reduced gross profit margins and rising costs, which have put pressure on the brand\u2019s profitability.<\/p>\n\n\n\n Nevertheless, Group turnover increased by 3.7% to R56.1 billion, with Boxer\u2019s contribution showing a notable 12.0% turnover growth. <\/p>\n\n\n\n However, Pick n Pay\u2019s own turnover dipped slightly by 0.3%, highlighting the ongoing challenges faced by its traditional store format.<\/p>\n\n\n\n Looking forward, Pick n Pay\u2019s management remains confident that improved earnings are on the horizon.<\/p>\n\n\n\n The second half of the fiscal year is expected to benefit from reduced net funding costs resulting from the Recapitalisation Plan, ongoing growth in the Boxer and Clothing segments, and further recovery in Pick n Pay\u2019s core retail operations. <\/p>\n\n\n\n The planned IPO of Boxer at the end of 2024, with Pick n Pay retaining a controlling interest, is anticipated to reinforce the Group\u2019s balance sheet and support future expansion initiatives. <\/p>\n\n\n\n This shift towards a more profitable and sustainable retail footprint represents a significant milestone in Pick n Pay\u2019s multi-year turnaround plan, with early signs pointing toward a path of steady improvement.<\/p>\n\n\n\n
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