Business
Pick n Pay Closes 32 Stores in South Africa Amid Turnaround Strategy

Pick n Pay, one of South Africa’s leading retailers, has announced the closure of 32 supermarkets across the country as part of its aggressive turnaround strategy. This move comes amid efforts to stabilize the business following significant financial losses in recent years.
A Tough Call for a Fresh Start
In its trading update for the 45 weeks ending 5 January 2025, Pick n Pay revealed that 24 company-owned stores and 8 franchise stores have been shut down. Additionally, five company-owned stores were converted into franchise outlets. This decision is part of the retailer’s ‘Store Estate Reset’ plan aimed at optimizing operations and focusing on profitable locations.
Despite these closures, Pick n Pay has shown steady improvements. Like-for-like sales grew by 1.6%, with Pick n Pay South Africa reporting a 1.9% increase. However, when excluding like-for-like adjustments, overall sales saw a slight decline of 0.4% at the group level and 0.1% for South Africa.
The Road to Recovery
The company embarked on this turnaround journey after reporting a staggering after-tax loss of R3.2 billion for the fiscal year ending February 2024. This included a R2.8 billion non-cash impairment on company-owned assets. Pick n Pay Grocery alone recorded a trading loss of R1.5 billion, which significantly offset the R1.9 billion profit from its Boxer stores.
To regain financial stability, Pick n Pay raised R4 billion through a Rights Offer in August 2024, which was more than double oversubscribed. Additionally, the separate listing of Boxer stores generated another R8 billion, strengthening the company’s financial foundation.
Growth Amid Challenges
Interestingly, not all areas of the business faced setbacks. Clothing sales in standalone stores grew by 10.0%, with online sales soaring by 42.5%, driven by the success of Pick n Pay asap! and partnerships with the Mr D app. Boxer stores remained a strong performer, recording 12% growth (7.7% like-for-like) for the first half of FY25 and maintaining double-digit growth throughout the 45-week period.
Pick n Pay also managed to control its internal selling price inflation, which dropped to 2.4% from the 8.2% reported in FY24, reflecting better pricing strategies and cost management.
Looking Ahead
While store closures are often seen as a sign of struggle, Pick n Pay’s strategic moves reflect a deliberate effort to streamline operations and focus on sustainable growth. The retailer remains optimistic, buoyed by improved sales trends, robust online performance, and the continued success of Boxer stores.
As Pick n Pay navigates its path to recovery, the focus will remain on enhancing retail discipline, optimizing its store network, and leveraging digital growth to secure a stronger position in South Africa’s competitive retail landscape.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com