Investor Relations
Welcome to the Pick n Pay Group
Investor Relations
Welcome to the Pick n Pay Group
Pick n Pay today announced its interim financial results for the 26 weeks ended 30 August 2026 (H1 FY27), showing the foundations of a more sustainable business as its turnaround efforts begin to take hold.
Highlights include:
Pick n Pay successfully concluded its Store Labour Model consultation process last week, reaching an agreement with its primary labour partners. The agreement establishes a more flexible, efficient and sustainable store labour model, with implementation commencing on 1 November 2026. This is expected to strengthen Pick n Pay’s competitiveness as it works to restore sustainable profitability.
“We are pleased that we have reached agreement through the formal consultation process. This puts us on a more competitive footing, helps secure jobs, provides greater certainty for our employees and creates a stronger platform for future growth. We extend thanks to all involved for the constructive and respectful nature of the engagement, which is a testament to the strength of the relationships we have built over time,” says Pick n Pay CEO Sean Summers.
The agreement marks the latest achievement in the six-point strategic turnaround plan set out two and a half years ago. Other priorities achieved include the successful recapitalisation of the business, the completion of a store estate reset to address loss-making stores, the strengthening of key partnerships to enhance the customer offer and drive innovation, and the implementation of leadership succession plans. Last month, Pick n Pay announced Spencer Sonn as CEO-designate, who will join the business next year.
“We have put the fundamentals in place, and they are delivering, despite the constrained trading environment. Notwithstanding these market challenges, we have delivered a strong like-for-like performance in our company-owned supermarkets, ahead of competitors, and with further benefits to come as we systematically work towards our FY29 break-even target,” says Summers.
Group trading profit increased by R180 million to R490 million, while the Group headline loss narrowed by 31.9% to R299 million. Group turnover grew by 2.4%, supported by Boxer’s 6.3% growth, while the Pick n Pay segment was broadly flat, reflecting the strategic store closures over the past 12 months. Group gross profit margin expanded by 0.7 percentage points to 18.8%, reflecting improved margins across both businesses, driven by product range optimisation and improved supply chain efficiencies.
The Group’s loss before tax and capital items improved by 56.2% to R139 million, compared with R317 million in the prior comparable period. Boxer’s trading profit increased by 8.1% to R1.0 billion, while Pick n Pay’s trading loss reduced by 16.9% to R0.5 billion. The improvement in Pick n Pay’s segment performance was driven by gross profit margin accretion and contained trading expense growth.
Pick n Pay’s company-owned South African supermarkets recorded like-for-like sales growth of 2.4%. With internal selling price inflation at 1.5%, this translated into positive like-for-like volume growth, indicating sales increased in real terms. “Improving the customer experience is central to our turnaround and is supporting sales growth. Our renewed focus on fresh produce quality has seen us introduce more than 50 new and upgraded fresh lines this year, driving stronger category growth and increased customer participation in fresh,” says Summers.
Pick n Pay’s South African turnover declined by 0.5% in the period, an improvement on the 1.4% decline recorded in FY26. The now-concluded store estate reset continues to weigh on total turnover, although this effect is diminishing. In the four weeks following the reporting period, like-for-like sales growth at Pick n Pay South African supermarkets was slightly ahead of the first-half rate.
Pick n Pay Online continued to grow strongly, with turnover increasing by 35.4% in the first half. Following a significant technology overhaul in recent years, the business has accelerated the rollout of enhancements in H1 FY27. This includes improvements to the shopping and checkout experience and the launch of Penny, South Africa’s first conversational AI-powered grocery shopping assistant on asap!, which has helped customers discover more products, plan menus and shopping lists and grow basket sizes.
The introduction of Pick n Pay Clothing on the asap! app brings groceries and clothing together in a single shopping journey, strengthening the retailer’s omnichannel offer. From March to August 2026, online clothing sales grew by 137% year on year, compared with the same period in 2025, when customers could shop the range online only through the website.
Pick n Pay Clothing’s standalone stores recorded turnover growth of 3.9%, while like-for-like sales declined by 0.7%. Despite a challenging South African clothing market, the business continued to gain market share, improving its like-for-like performance compared with the second half of FY26, and remains focused on returning to positive like-for-like growth.
Boxer continued to contribute to Group growth, with profit before tax and capital items increasing by 10.6%. Its performance reflects the strength of its value-led proposition and expansion strategy.
The Pick n Pay segment’s trading loss of R516 million underscores the scale of work still needed to restore sustainable profitability. Delivery has been systematic and incremental against a clear multi-year plan.
The Group ended the half-year with net cash on hand of R10.0 billion, including R7.7 billion within Pick n Pay. This stronger financial position provides a foundation for continued investment in the customer offer and operational improvements.
Looking ahead, Summers says elevated oil prices and pressure on consumers will make trading conditions challenging for the remainder of FY27, but that Group remains focused on the operational improvements within its control as it builds towards its FY29 break-even target.
“Our foundations are stronger, and our hard work is delivering, despite a tough market, but there is still much to do. We must now build on this progress, further improve the customer experience and deliver the sustained sales growth and operational improvements needed to return Pick n Pay to profitability. We thank our colleagues and franchise partners for their continued commitment as we work together to rebuild Pick n Pay for a stronger, more sustainable future,” concludes Summers.