Pick n Pay closes more stores across SA
One of South Africa’s leading retailers, Pick n Pay, has announced the closure of 32 supermarkets across South Africa as part of its turnaround strategy. This move comes amid efforts to stabilise the business following significant financial losses in recent years.
Source: Reuters/Siphiwe Sibeko
In a trading update for the 45 weeks ending 5 January 2025, Pick n Pay revealed that 24 company-owned stores and eight franchise stores have shut their doors. In addition, five company-owned stores were converted into franchise outlets.
At the time of last reporting (October 2024), the group had closed 24 supermarkets, including 10 corporate stores and 14 franchise stores — meaning the total has increased by 8 since.
This decision is reported to be part of the retailer’s ‘Store Estate Reset’ plan aimed at optimising operations and focusing on profitable locations.
The company embarked on this turnaround journey after reporting a staggering after-tax loss of R3.2bn for the fiscal year ending February 2024. This included a R2.8bn non-cash impairment on company-owned assets. Pick n Pay Grocery alone recorded a trading loss of R1.5bn, which significantly offset the R1.9bn profit from its Boxer stores.
To regain financial stability, Pick n Pay raised R4bn through a Rights Offer in August 2024, which was more than double oversubscribed.
Additionally, the separate listing of Boxer stores generated another R8bn, strengthening the company’s financial foundation. Boxer reportedly saw strong sales growth in the 45-week period, with sales up 11.4% and 6.7% on a like-for-like basis.
Related
