Ackermans Scale Back Pick n Pay Stake as Turnaround Gains Momentum

In a move that marks another chapter in South Africa’s retail history, the Ackerman family has sold an 8.5% stake in Pick n Pay, reducing their voting power from 49% to just under 37%, and their economic interest to roughly 18%. The sale comes as the retailer shows signs of stabilising under its ambitious turnaround plan.

From Cape Town Corner Store to Retail Giant

Pick n Pay’s story began in 1967, when Raymond Ackerman purchased a single struggling shop in Cape Town. Over the decades, he built it into one of South Africa’s largest supermarket chains, earning a reputation for affordable groceries and exceptional customer service. Raymond remained a guiding force in the company until his passing in 2023, leaving a legacy that shaped the nation’s retail landscape.

Despite this history, recent years brought challenges. Competitors such as Shoprite and Checkers expanded aggressively, modernising stores and drawing market share away from Pick n Pay. Operational inefficiencies and underperforming outlets further strained profits, creating the need for a major strategic reset.

Rescue and Recovery

In 2024, the Ackermans implemented a restructuring plan that saw them stop being majority shareholders, while personally injecting R1.1 billion into the business to stabilise it. Their intervention was crucial in keeping the retailer afloat, particularly as it faced a shrinking market share and the pressures of an increasingly competitive retail sector.

The family’s backing gave CEO Sean Summers, who was persuaded out of retirement, the mandate to implement a bold turnaround strategy. This included closing or converting underperforming stores, streamlining operations, and refocusing on profitable growth.

Why the Sale Isn’t a Retreat

The Ackermans’ latest share reduction is not a retreat from Pick n Pay. They remain anchor shareholders, signaling their ongoing confidence in the company’s future. By selling in a structured way, the family is taking some money off the table while maintaining financial and leadership continuity.

Industry analysts suggest this measured approach balances liquidity with long-term commitment, ensuring Pick n Pay has the backing it needs to navigate South Africa’s fiercely competitive retail environment.

As Pick n Pay continues to regain footing, the combination of strategic leadership under Summers and the Ackermans’ support provides a strong foundation for sustainable growth. With competitors constantly evolving, the retailer’s ability to adapt and refocus on core strengths will determine its position in the market in the years ahead.

For a family that helped build the company from a single store into a retail giant, the latest share sale reflects both prudent financial management and enduring faith in the company they helped create.