Business
Whitey Basson Speaks: Why Pick n Pay’s Comeback Might Surprise You
The Retail Veteran’s Unexpected Take
Few names carry as much weight in South African retail as Whitey Basson. The former Shoprite chief executive, known for transforming the grocery chain into a continental powerhouse, has now shared rare insight into his long-time competitor, Pick n Pay, and his verdict may surprise you.
Speaking at the Toyota Stellenbosch Woordfees in conversation with Mia Spies, Basson said Pick n Pay is doing better than people think. His comments come after a turbulent decade for the retailer, which saw it lose ground to Shoprite, battle financial strain, and even flirt with technical insolvency.
A Decade of Decline, and a Turnaround in Motion
Pick n Pay’s troubles began in the late 2000s, when the company steadily lost market share to Shoprite. The gap widened dramatically as Shoprite expanded aggressively into townships and other African markets.
By 2023, the situation had become critical enough that Sean Summers, who previously led the group in its heyday, was brought back as chief executive to steer the recovery. Under his leadership, the retailer pulled off a much-needed capital raise, listed Boxer on the JSE, and began stabilising its operations and debt.
Basson acknowledged those efforts, saying, “Pick n Pay is not struggling that much. Many of the things they set out to do, they achieved, and they are doing fine.”
Where Things Went Wrong
Basson also offered a candid assessment of why Pick n Pay fell behind in the first place. He believes the decline was partly due to its family-business structure and a loss of strong leadership after founder Raymond Ackerman stepped back.
“Once Raymond began to move away, it became harder for ambitious employees to reach the top,” Basson said. “It was a company that relied heavily on family influence, which made internal growth tricky.”
He added that at one point, the retailer shifted its focus towards issues unrelated to its commercial health. “There was so much emphasis on non-business matters, like global warming, that it distracted from operational priorities. When there was a problem with tomatoes in stores, it took a backseat to these bigger-picture topics.”
Still a Sleeping Giant
Despite past missteps, Basson maintains that Pick n Pay’s core assets remain exceptional. “They have great stores and excellent locations in many cases, better than Shoprite. With the right focus, it can be turned around easily,” he said.
The turnaround appears to be underway. With improved balance sheets, a stronger focus on efficiency, and Summers’ reputation for execution, Basson believes the retailer’s best years may still be ahead.
When the Banks Came Calling
In a striking revelation, Basson shared that he was once approached by banks to take a stake in Pick n Pay during its lowest period. He declined, saying he did not want to compete against his former colleagues at Shoprite.
“I still have many friends there,” he explained. “I wasn’t willing to create a strategy for Pick n Pay that would make things difficult for the Shoprite team.”
Why His Words Matter
Whitey Basson rarely comments publicly on competitors, which makes his optimism noteworthy. Coming from a man whose business instincts reshaped African retail, his words carry weight.
His message is one of perspective: Pick n Pay may have stumbled, but its fundamentals remain strong. In a climate where South Africans are tightening belts and retailers are fighting for every rand, that resilience might just be what keeps Pick n Pay in the game.
Also read: PSG Warns South Africa: Strong Profits, Weak Reform Could Derail Growth
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Source: Business Tech
Featured Image: BusinessLIVE
