Pick n Pay is seeing improvements in several key metrics, as the group chases a return to profitability.<\/p>\n\n\n\n
The retailer has faced a challenging couple of years, including its failed Ekuseni strategy, billions in losses, and being technically insolvent.<\/p>\n\n\n\n
This led to drastic changes, including the return of former CEO Sean Summers, a R4 billion rights offer and the IPO of one of its best-performing businesses in Boxer.\u00a0<\/p>\n\n\n\n
The group’s latest update for the 26 weeks to 31 August 2025 shows that the shift in strategy has led to several improvements, including steady like-for-like sales for Pick n Pay and another strong performance from Boxer.\u00a0<\/p>\n\n\n\n
Group turnover rose 4.9%, with like-for-like sales up 4.7% against the same period last year. <\/p>\n\n\n\n
Like-for-like turnover growth showed improved momentum across all of the group\u2019s supermarket formats in the last two months of the period. <\/p>\n\n\n\n
Pick n Pay South Africa\u2019s like-for-like sales for the period grew 4.3%.\u00a0<\/p>\n\n\n\n
\u201cThe group views this as a credible performance in the context of a highly constrained consumer and continued subdued food price inflation,\u201d it said.\u00a0<\/p>\n\n\n\n
The group also implemented its planned store closures and conversions, which resulted in overall turnover growth lagging like-for-like sales momentum. <\/p>\n\n\n\n
Boxer turnover for the period grew 13.9%, with 5.3% like-for-like sales growth. <\/p>\n\n\n\n
Clothing turnover growth in standalone stores for the period was 12.0% (7.5% like-for-like sales). <\/p>\n\n\n\n
Clothing momentum moderated in the last two months of the period as the earlier softness in the base normalised.<\/p>\n\n\n\n
Online sales growth for the period was 34.4%, driven by the continued growth of Pick n Pay asap! and Pick n Pay groceries on the Mr D app.<\/p>\n\n\n\n
The group\u2019s internal selling price inflation for the period was 2.1%, which was in line with the 2.1% reported for FY25, and well below CPI Food of 4.6%. <\/p>\n\n\n\n While the group is showing signs of life and racking up some successes with its turnaround, it is still expecting to report a loss for the period.<\/p>\n\n\n\n Positively, the expected headline loss should be reduced.<\/p>\n\n\n\n \u201cThe expected reduction of the headline loss is driven by a somewhat improved Pick n Pay segment trading result, a strong Boxer trading result, and a large positive swing in net funding interest.\u201d <\/p>\n\n\n\n This was partially offset by the 34.4% Boxer non-controlling interest due to the IPO. <\/p>\n\n\n\n The expected loss per share reduction was also impacted by an increase in the weighted average share count arising from the Rights Offer. <\/p>\n\n\n\n This resulted in the weighted average number of ordinary shares in issue (net of treasury shares) increasing by 25% from 587.54 million for H1 FY25 to 734.53 million for H1 FY26.<\/p>\n\n\n\n Pick n Pay is seeing improvements in several key metrics, as the group chases a return to profitability.<\/p>\n","protected":false},"author":95,"featured_media":811720,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[],"class_list":["post-839564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/839564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=839564"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/839564\/revisions"}],"predecessor-version":[{"id":839569,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/839564\/revisions\/839569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/811720"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=839564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=839564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=839564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Period<\/th> Previously published \u2013 17 weeks ended 29 June 2025 (% growth)<\/strong><\/th> Previously published \u2013 17 weeks ended 29 June 2025 (% growth)<\/strong><\/th> 26 weeks ended 31 August 2025 (H1 FY26) (% growth)<\/strong><\/th> 26 weeks ended 31 August 2025 (H1 FY26) (% growth)<\/strong><\/th><\/tr><\/thead> Metric<\/strong><\/td> Turnover<\/strong><\/td> Like-for-Like sales<\/strong><\/td> Turnover<\/strong><\/td> Like-for-Like sales<\/strong><\/td><\/tr> Pick n Pay (SA & RoA*)<\/strong><\/td> 0.1%<\/td> 3.6%<\/td> 0.1%<\/td> 4.4%<\/td><\/tr> Pick n Pay SA<\/strong><\/td> 0.0%<\/td> 3.6%<\/td> 0.4%<\/td> 4.3%<\/td><\/tr> Boxer (SA & RoA*)<\/strong><\/td> 12.1%<\/td> 3.9%<\/td> 13.9%<\/td> 5.3%<\/td><\/tr> Group turnover<\/strong><\/td> 4.3%<\/td> 3.8%<\/td> 4.9%<\/td> 4.7%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Financials <\/h2>\n\n\n\n
Metric<\/strong><\/th> Expected Range of Improvement (% change)<\/strong><\/th> 26 weeks to 31 August 2025 (H1 FY26)<\/strong> \u2013 Expected Range<\/em><\/th> 26 weeks to 25 August 2024 (H1 FY25)<\/strong> \u2013 Reported<\/em><\/th><\/tr><\/thead> Absolute earnings metrics<\/strong><\/td> <\/td> <\/td> <\/td><\/tr> Headline earnings (Rm)<\/td> 40% \u2013 50%<\/td> -479 to -399<\/td> -803<\/td><\/tr> Per share earnings metrics<\/strong><\/td> <\/td> <\/td> <\/td><\/tr> Earnings per share (EPS)<\/td> 45% \u2013 55%<\/td> -77.39 to -63.31<\/td> -140.83<\/td><\/tr> Diluted EPS<\/td> 45% \u2013 55%<\/td> -77.38 to -63.31<\/td> -140.67<\/td><\/tr> Headline earnings per share (HEPS)<\/td> 50% \u2013 60%<\/td> -67.97 to -54.31<\/td> -136.60<\/td><\/tr> Diluted HEPS<\/td> 50% \u2013 60%<\/td> -67.96 to -54.31<\/td> -136.44<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"