Pick n Pay’s store network has undergone significant changes over the past decade, with its store reset programme seeing the footprint shrink significantly.
However, Pick n Pay CEO Sean Summers said this programme, which targeted loss-making stores, has now been successfully concluded and has aided the group’s financial health.
Now, the group is embarking on a review of its store labour model, having initiated Section 189 proceedings in early May.
In addition, with its store reset programme completed, the company can now focus on optimising and refurbishing its existing network, as well as rolling out new stores that better align with the group’s strategy.
Pick n Pay released its results for the 2026 financial year on Monday, 25 May, which showed some progress in the company’s ongoing turnaround.
One notable milestone was the conclusion of Pick n Pay’s store reset programme, which was launched in the 2024 financial year.
This programme was considered a core element of the group’s turnaround strategy, aimed at eliminating losses from underperforming company-owned Pick n Pay stores.
At the start of this programme, Pick n Pay identified 112 loss-making stores that would either be closed, converted to Boxer stores, or converted to Pick n Pay franchises. By 2025, this had increased to 114 stores.
This decision came at a cost. Since the stores had limited scope for reaching profitability, resetting the estate triggered a huge non-cash asset impairment of over R1.73 billion in the 2024 financial year.
In 2025, an impairment loss of R93 million was recorded relating to the reset stores.
However, Summers previously explained that this short-term pain would be worth the long-term gain.
To his point, the store reset programme was projected to lead to associated savings and loss avoidance of around R850 million in the 2024 financial year.
This programme, along with other factors, has significantly altered Pick n Pay’s footprint over the past two years, though the group now still has more stores in its network than it had a decade ago, as seen in the table below.
Financial Year
Pick n Pay (Company-Owned)
Pick n Pay (Franchise)
Boxer (Company-Owned)
FY16
596
549
208
FY17
661
614
229
FY18
722
660
246
FY19
749
719
270
FY20
794
774
298
FY21
N/A
761
N/A
FY22
N/A
N/A
N/A
FY23
957
747
428
FY24 (Store estate reset programme started)
1,007
722
477
FY25
971
697
525
FY26
992
620
576
Note: The exact split between Pick n Pay and Boxer company-owned stores is not explicitly detailed in the company’s reports for FY21 and FY22. However, the group reported a total of 1,172 company-owned stores and 761 franchise stores at the end of FY21.
Boxer booming as Pick n Pay shrinks
As Pick n Pay has been implementing its store estate reset programme, its subsidiary, Boxer, has only seen its network grow over the past few years.
Boxer is currently one of the fastest-growing retailers in South Africa, having grown its network by 99 stores between the 2024 and 2026 financial years.
Over that same period, Pick n Pay’s company-owned stores declined by 15 stores, while the franchise network shrank by 102 stores.
Boxer’s network naturally benefited from Pick n Pay’s store reset programme, as some loss-making stores were converted to Boxer stores.
However, Boxer’s footprint has also grown in its own right, with the group’s network having more than doubled from 208 to 576 stores over the past decade.
While Pick n Pay’s store reset programme was specifically aimed at company-owned Pick n Pay stores, the group has also seen a significant reduction in franchise stores over the past few years.
Franchise stores have historically been a vital part of Pick n Pay’s strategy, with the network having peaked at 774 stores in the 2020 financial year.
However, in recent years, this footprint has shrunk significantly, due to a combination of closures, conversions, and the termination of the Namibian master franchise agreement.
The termination of this agreement led to 36 franchise stores being closed in the 2026 financial year alone.
The closures and conversions of franchise stores occurred independently of Pick n Pay’s store reset programme, with many starting even before it was launched.
For example, in 2021, the group converted 34 franchise stores to company-owned formats, another 7 the year after, 22 more in 2023, and another 10 in 2024.
In mid-2025, Pick n Pay also acquired the franchise operations in Botswana from its master franchisee for R36 million. This deal effectively “corporatised” the region, converting 13 franchise supermarkets into corporate-owned stores.
These conversions allowed Pick n Pay’s corporate-owned store network to decline far slower than its franchise network, despite the store estate reset programme.
The ANC has instructed Sisi Tolashe to step down as Member of Parliament and as the ANC Women’s League (ANCWL) president. Image: Itumeleng English / Independent Newspapers
ANC has moved against ANC Women’s League president Sisisi Tolashe, instructing her to resign as both an MP and ANCWL president after the party’s integrity commission found her guilty of misconduct in public office.
This was confirmed by senior party insiders to IOL, who said this was discussed over the national executive committee (NEC) meeting over the weekend.
Behind closed doors, however, the sources described an atmosphere of fury, frustration, and political exhaustion.
“The organisation reached a point where it could no longer defend the indefensible,” said a senior ANC source familiar with the NEC discussions.
“Leaders agreed that failing to act against Tolashe would destroy whatever credibility the ANC still has on issues of ethics and accountability.”
Another senior party figure said the decision was meant to send a message across ANC structures.
“This is the strongest signal yet that the era of protection and excuses is being challenged,” the source said. “The ANC understands the public is watching closely.”
The ANCWL is now expected to hold urgent discussions over Tolashe’s exit as fears mount over instability and factional battles inside the league.
Another source who backed the decision said the party had no choice.
“Painful as it is, accountability must apply to everyone… The movement cannot survive if leaders believe positions are shields against consequences,” the source said.
Despite mounting pressure, Tolashe had resisted calls to resign, insisting she would only step aside if Ramaphosa personally instructed her to do so.
The president eventually dismissed her from the Cabinet but now the ANC is moving to remove her from every remaining position she holds within the state and the party.
The matter reached a boiling point during a tense weekend meeting of the ANC’s NEC, where members endorsed the integrity commission’s findings and escalated the case to the party’s disciplinary committee.
On Tuesday, ANC secretary-general Fikile Mbalula confirmed that Tolashe and former police minister Bheki Cele were among five ANC members referred for allegedly bringing the organisation into disrepute.
“The constitutional disciplinary process will run its ordinary course,” Mbalula said.
Joe “Ferrari” Sibanyoni and his co-accused are expected to return to court on Thursday after their extortion case was struck off the roll. Image: Oupa Mokoena / Independent Newspapers
Mpumalanga taxi boss Joe “Ferrari” Sibanyoni extortion case is back on the court roll.
Sibanyoni and his three co-accused are expected to line up in the dock of the Delmas Magistrate’s Court.
The four accused are expected to appear in court on Thursday after the matter was transferred amid escalating tensions over the case’s sensitivity.
Sibanyoni and his co-accused face allegations of extorting more than R2 million in so-called protection fees from a local mining entrepreneur.
Tonjeni also issued a warrant for Ntaba’s arrest and convicted him of contempt of court, triggering sharp backlash from the National Prosecuting Authority (NPA).
The NPA has since accused the magistrate of misapplying the law and has moved to challenge the rulings in a higher court.
NPA spokesperson Kaizer Kganyago confirmed the authority has also lodged a formal complaint against Tonjeni with the Magistrates Commission.
“The formal complaint is premised on serious concerns that the NPA has in the manner in which she conducted the court proceedings on May 15 and 18 2026 that culminated in the two orders that she granted,” Kganyago said.
The controversial orders included the contempt conviction against Ntaba, the issuing of a warrant for his arrest and the decision to strike the criminal matter from the court roll under Section 342A of the Criminal Procedure Act.
The prosecuting authority has already filed a notice of intention to appeal both the contempt ruling and the arrest warrant, arguing that the developments have serious implications for the administration of justice.
The case has attracted intense attention due to allegations involving extortion, intimidation and organised criminal activity linked to Mpumalanga’s taxi industry.
Meanwhile, Santaco has re-elected Sibanyoni as its second deputy president despite ongoing legal troubles.
South African Reserve Bank governor Lesetja Kganyago. The Sarb already warned in March that the ongoing Middle East conflict is a clear instance of a supply shock, which raises prices while weakening demand. Image: Supplied
South African consumers could face a double blow in June as economists predict the South African Reserve Bank (Sarb) to raise interest and the government will end the R3-per-litre fuel levy relief.
The recent relief has helped motorists cope with rising global oil prices. The Sarb’s Monetary Policy Committee (MPC) is likely to take a hawkish stance on Thursday after inflation rose from 3.1% in March to 4.0% in April, mainly due to increasing fuel costs linked to the ongoing Middle East conflict.
Several economists now warn that inflation could climb closer to 5% in the coming months, increasing pressure on the Sarb to act pre-emptively to prevent higher prices from becoming entrenched in the economy.
The Sarb already warned in March that the ongoing Middle East conflict was a clear instance of a supply shock, which raises prices while weakening demand. The central bank said waiting for clear evidence risks leaving the policy response too late.
According to Nedbank economists Johannes (Matimba) Khosa and Nicky Weimar, the sharp jump in petrol and diesel prices has already started filtering through to broader transport and operating costs, pushing core inflation higher and increasing the risk of second-round inflation effects.
Nedbank acknowledged that the MPC had some space to wait and see how the global supply shock unfolds, as monetary policy remained moderately restrictive and the usual accelerants of spiking risk premia and significant rand weakness have not yet materialised.
“Despite these valid considerations, our analysis suggests that inflation expectations are particularly sensitive to petrol price increases, and we, therefore, see a relatively high risk of second-round effects,” they stated.
“As such, tightening monetary policy now would ensure that the inflationary consequences of the supply-side shock are temporary and likely minimise the need for more severe tightening later in the cycle.”
Nedbank expected the Sarb to raise the repo rate by 25 basis points to 7%, which would push the prime lending rate to 10.50%.
Adriaan Pask, chief investment officer at PSG Wealth, said the Sarb faced a difficult balancing act between protecting economic growth and defending its inflation credibility.
He argued that while higher fuel and electricity prices were largely supply-side shocks that interest rates could not directly solve, the Sarb could not risk appearing complacent about inflation drifting away from its preferred 3% target.
“The more durable solution lies in reforms that reduce supply-side costs, improve productivity and give South Africa a stronger, more sustainable growth platform,” Pask said.
However, the prospect of another rate increase is likely to deepen pressure on already heavily indebted households.
Workers and consumers are simultaneously facing rising transport costs, electricity tariff increases and expensive food and credit costs, while economic growth remains sluggish.
But beyond food prices, activists say the hunger crisis is also exposing deep government failures.
The coalition is now demanding an urgent national food plan, the creation of a national food council, and legal accountability for child deaths from malnutrition.
With the cost-of-living soaring, activists warn that hunger in South Africa is no longer just a charity issue, but a political emergency.
As protests and boycotts loom, pressure is mounting on government and big business to respond.
Analysts warned that although there is great potential upside with Pick n Pay, it carries significant risks based on a successful turnaround strategy.
They shared these comments after Pick n Pay released its audited annual financial statements for the 2026 financial year.
These statements contained many positives, including steady progress in its multi-year turnaround strategy and underlying operational improvements.
To fund this ongoing strategy, Pick n Pay disposed of a 12.5% stake in Boxer, raising R4.7 billion in gross proceeds.
Another positive was that the retailer’s overall level of debt decreased from R1.2 billion to just R200 million at the close of the 2026 financial year.
The remaining R200 million was repaid after the reporting date, leaving the Pick n Pay Group with no long-term debt.
Pick n Pay’s Online segment was another positive, with a 32.7% increase in turnover and successfully meeting its profitability targets.
There were also many concerning things in the numbers, including deepening trading losses in Pick n Pay’s core segment.
Group trading profit declined 4.2% to R1.7 billion, due to a R404 million increase in the core Pick n Pay segment’s trading loss to R1.0 billion.
Trading expenses as a percentage of turnover in the Pick n Pay segment rose to 21.7%, driven by above-inflation wage increases and higher advertising costs.
This showed that the turnaround still has a long way to go. It pushed out its break-even target for the Pick n Pay segment to the 2029 financial year, rather than 2028.
Turnover for the Pick n Pay segment declined 1.6%, largely due to the store estate reset program involving store closures and conversions.
It also continues to burn through cash. Its net cash reduced from R4.2 billion at the end of the 2025 financial year to R3.1 billion at the end of the 2026 financial year.
Pick n Pay has also initiated a Section 189A statutory consultation process to restructure its store labour model, which creates uncertainty.
Pick n Pay CEO Sean Summers’ feedback
Pick n Pay CEO Sean Summers
Pick n Pay CEO Sean Summers remains upbeat about the retailer’s prospects, saying the turnaround strategy remains firmly on track.
“The turnaround is supported by improving topline growth, renewed operational disciplines, and careful cash management,” he said.
“While Pick n Pay’s trading loss increased, the business today is fundamentally stronger than it was two-and-a-half years ago.”
He cited the steady improvement in company-owned Pick n Pay supermarket like-for-like sales growth and a 0.4% increase in gross profit margin.
Summers added that the company now has the balance sheet strength to support its return to profitability. However, it still needs a lot of work.
“Achieving break-even in Pick n Pay requires the successful execution of all six strategic initiatives, including the recalibration of our total employment costs,” he said.
The retailer is addressing its structurally high store labour costs through a formal Section 189 consultation process.
“One of the first issues I raised on my return was that we needed to address Pick n Pay’s significantly distorted labour cost base relative to competitors,” he said.
“Our objective is clear: to align our cost structure with industry standards while safeguarding jobs wherever possible.”
The Pick n Pay CEO said the company’s store estate reset is effectively done, and it has achieved some of the key milestones needed to achieve growth.
“We continue to see encouraging progress across the business, but the reality is that the challenges facing Pick n Pay developed over an extended period,” he said.
“This means that rebuilding the business into a leading supermarket retailer again will take time, disciplined execution and difficult but necessary decisions.”
Analyst opinion about Pick n Pay
Jonathan Fisher, a wealth manager at PSG Wealth Sandton, described Pick n Pay’s latest results as a “shocker”.
He said that although Pick n Pay managed to decrease its headline loss per share, the overall financial results were not good.
“The market’s negative reaction, with the share price declining 5% on the day, shows investors aren’t buying the turnaround narrative yet,” he said.
He described Pick n Pay’s turnaround as “a huge oil tanker that’s really trying to turn around but is just not turning”. “It’s taking forever,” he said.
He said the entire consumer market is under massive pressure, and that there are better alternatives in the retail sector, such as Shoprite.
Simon Brown from JustOneLap was also negative about Pick n Pay, pointing to the turnaround timeline, which gets moved out again and again.
He also flagged the ongoing Section 189 staff retrenchment process as an operational risk, especially if it leads to strike action.
Brown said Pick n Pay’s core brand is moving in the wrong direction and losing ground to competitors like Woolworths and Checkers.
“Pick n Pay is pulling back, dropping leases, and closing stores while its competitors are aggressively opening new stores,” he said.
Brown and Fisher highlighted that there is massive potential upside if Pick n Pay’s turnaround is successful. However, it is not guaranteed.
This means Pick n Pay is currently a highly speculative investment that carries significant risks associated with the turnaround.
