Pick n Pay Sales Inch Up Amid Turnaround Efforts

Pick n Pay Stores announced a 2.4% rise in first-half sales to ZAR 60.5 billion, demonstrating progress in its turnaround strategy amid a difficult South African retail landscape. The company reported an improved trading profit of ZAR 500 million, an increase of approximately ZAR 180 million compared to the previous year.

Despite weak consumer demand and intense competition, Pick n Pay successfully narrowed its headline losses by 31.9% to ZAR 299 million. The retailer also saw its gross margin improve by 70 basis points to 18.8% and bolstered its cash reserves to ZAR 10 billion.

The Boxer discount chain continued its strong performance with sales growth of 6.3%, while the core Pick n Pay supermarket business, though still loss-making, showed an improved trading loss. Omnichannel sales experienced significant growth, climbing 35.4% and becoming the fastest-growing segment.

Management reaffirmed its long-term break-even target for FY 2029 and anticipates savings from labor restructuring to impact FY 2028. The company maintained its gross capital investment guidance for FY 2027 at ZAR 1.7 billion, with spending focused on store revamps and maintenance.