Pick n Pay Delivers Further Momentum in Turnaround

Cape Town, 27 October 2025; Pick n Pay today announced its interim results for the 26 weeks ended 31 August 2025 (H1 FY26), reflecting steady progress on its turnaround. The Group’s core Pick n Pay supermarket segment continued its recovery journey, while Boxer delivered outstanding results, achieving a market-leading 13.9% turnover growth, further cementing its position as South Africa’s leading grocery discounter. PnP Clothing opened its 400th stand-alone store as it expanded its reach and delivered further market share gains. Online sales recorded solid double-digit growth, underscoring the Group’s growing competitiveness in the digital retail space.

“These results demonstrate that our turnaround is gaining traction, and we remain on track with each of our strategic priorities. Like-for-like sales growth has accelerated, our customer numbers are growing, and Boxer continues to outperform. Importantly, Pick n Pay Supermarkets’ market share has stabilised, notwithstanding the reduction in the size of our supermarket estate under our Store Estate Reset programme, a clear sign that we are on the right path,” said Pick n Pay CEO, Sean Summers.”

H1 FY26 saw the Group successfully execute on multiple of its strategic initiatives, while also delivering a meaningful improvement to profitability, and positive LfL volume growth in Pick n Pay Supermarkets. The Group reduced its headline loss per share by 56%, driven by steady operational improvements and the interest savings resulting from the recapitalisation.

The Store Estate Reset programme, a key part of the Pick n Pay turnaround strategy, is now largely complete. “This is an important milestone. Going forward, any further changes to our store estate will simply be a normal part of assessing each stores performance as leases come up for renewal. Critically, the optimisation of our store estate has removed a large number of loss-making stores out of the system, allowing us to serve our customers better and to support our long-term sustainable growth,” said Summers.

Pick n Pay gross profit margin improved by 0.4% points, demonstrating that the like-for-like sales growth was driven by a considerably strengthened customer offer. Reflecting on this, Summers said that the Group’s focus remained on “strengthening the customer offer, accelerating like-for-like sales, establishing a sustainable future-fit business, and unlocking new growth engines to support the turnaround.”

Enhancing the customer offer through improved range, value, quality, and service has been a critical pillar of Pick n Pay’s recovery. A stronger Fresh product offer, more Own Brand lines, and customer service training for over 28,000 store employees have all enhanced the in-store experience, and saw customers increasingly turning to Pick n Pay as their supermarket of choice. In addition, the improved franchise operating model combined with closer engagement and collaboration with franchise partners, is driving improvements across the supermarket estate.

Importantly, the Group’s pricing discipline kept internal selling-price inflation at 2.1%, well below CPI food inflation of 4.6%, helping all customers, especially those who need it most. “Greater efficiency enables more investment in price, which is exactly what we are doing, and we are confident that our pricing is now consistently competitive which is borne out by leading independent market surveys.”

The Group confirmed it would invest R2.2-billion over the full financial year, focused on the expansion of Boxer and PnP Clothing, while capex on Pick n Pay Supermarkets would be prudently allocated to customer-facing initiatives and strategic store revamps.

Digital transformation remains a key growth engine. On-demand online sales continued to grow steadily, with asap! and PnP groceries on the Mr D app delivering 44% year-on-year growth in H1. The successful migration to the new asap! grocery on-demand app has provided a more seamless shopping experience and enhanced value for customers. Pick n Pay’s online product range now exceeds 35,000 products.

Complementing this, the Smart Shopper loyalty programme deepened customer engagement, adding over 600,000 new customers and growing registered smart shopper customers loyalty sales by 9% year-on-year.

Pick n Pay is also enhancing its retail media and data analytics capabilities to support growth, with the addition of key new partnerships to scale its retail media platform and to drive advances in its use of AI and data analytics.

Additionally, Pick n Pay announced a  strategic supply chain partnership with DP World. Summers noted that this partnership will “enhance distribution capabilities,  improve service levels, and is expected to deliver meaningful efficiencies from the 2027 financial year, reinforcing Pick n Pay’s commitment to operational excellence and to serving our customers better.”

Boxer, now a separately listed entity which is 65.6% owned by the Group, continues to contribute to Group performance with scale, execution, and innovation. It remains firmly on track with its growth plans, delivering impressive turnover growth and strong like-for-like sales.

Pick n Pay remains steadfast in living its founder’s values, continuing to invest in the future of South Africa. “Our commitment to the country in delivering a sustainable future for all our people has never wavered, and if anything, we’ve deepened it, from feeding vulnerable families through Feed the Nation, and supporting schoolchildren through our Schools Club, to growing food gardens and protecting our environment.”

Looking to the future, Summers said that “this is a trading environment that is seriously constrained. Our customers are under immense pressure. Given this, I’m encouraged by the progress made and proud of the team’s incredible hard work in rebuilding the business for long-term sustainability.

“Our focus in the second half of the year remains firmly on improving our offer for our customers and on improving our operational execution, laying the groundwork for Pick n Pay’s return to profitability. While reaching break-even remains a multi-year journey, the investments we are making to rebuild retail excellence will ensure sustainable, long-term profitability. The work we are doing now will manifest itself in the future, and every investment we make is to ensure our long term success.”

Source: Provided