Retailer Pick n Pay says its turnaround is taking shape after solving its debt challenges and driving a like for like sales recovery in its core supermarkets. The retailer reported on Monday, that it reduced its trading loss by R1 billion, ‘well ahead of forecast’.
However, CEO Sean Summers, speaking about the group’s results for the 53 weeks to 2 March 2025, said the path back to break-even, profitability and ultimately long-term sustainable success will take longer than initially envisaged, “as the chosen strategy is to build retail muscle memory for long-term success”.
As a consequence, where the Group previously guided that it anticipated the Pick n Pay segment to break-even on a trading profit-after-lease-interest basis in FY27, the group now expects an FY28 break-even.
In order to ensure stability of management and singularity of purpose at this critical time in the turnaround, Summers has agreed to extend his tenure to May 2028. “The ultimate success of my tenure will be judged in 5- and 10-years’ time, as today’s efforts to rebuild retail capacity and excellence bear fruit,” he said.
Group turnover increased 5.6%, with 13.2% growth from Boxer and 1.9% growth from the Pick n Pay segment. Group trading profit of R1.8 billion reflected a R2.3 billion Boxer trading profit and a R549 million Pick n Pay trading loss.
On a pro-forma 52/52-week basis, Group FY25 turnover grew 3.2%, driven by a 0.3% Pick n Pay decline and 10.4% Boxer growth. On this basis, Pick n Pay’s South Africa sales were flat (-0.1% year on year), while Pick n Pay’s Rest of Africa sales declined 5.7%.
“There are no surprises in this result, we are meeting the guidance that we have given every 6 months, making calm and steady progress. You cannot rely on quick wins in our situation, and it will continue to be a journey as we rebuild our Institutional Memory.” said Summers.
“This was an important year for Pick n Pay as we executed the first leg of our operational and financial recovery. We are exactly where we said we would be when presenting the strategy last May and in some aspects, we are tracking slightly ahead. Particularly pleasing is the reduction in our Pick n Pay trading loss by 64% after predicting a 50% reduction.”
The first of its six strategic priorities announced in May last year was to recapitalise the group. In this financial year, the group completed its two-step Recapitalisation Plan – raising R12.5 billion through the Pick n Pay Rights Offer (R4.0 billion) and the Boxer JSE listing (R8.5 billion) – and restoring the group to a net cash position of R4.2 billion.
“We have started to give much-needed attention to our core Pick n Pay supermarkets and we are pleased to see the early results in reporting positive like-for-like sales growth, notwithstanding the sustained pace of new store openings by our competitors in a restrained and competitive market.” said Summers.
The group maintained its focus on keeping selling prices down, the chief executive said, recording inflation in Pick n Pay of just 2.1% for FY25, sharply down on FY24’s 8.2%, and well below Statistics SA Food CPI of 3.9%.
The third priority, he said, was to reset its store estate – including closing or converting 40 loss-making SA supermarkets. “The group has made considerable progress either converting to Boxer, Franchising or closing those stores where there was no prospect of their returning to profitability”.
Summers said that a great deal of focus was put into certain of the loss-making stores, with some now returning to profitability. The retailer has also started opening and committing to new stores and will increasingly refurbish its supermarkets to meet and exceed customer expectations.

The fourth pillar of the strategy was leadership and people – with key steps already taken, including staff training to improve the customer experience, reinstating regional leadership structures.
The fifth pillar, strengthening partnerships, was clearly demonstrated in the tie-up with FNB e-Bucks, which has already helped attract customers across all segments.
The retailer reported a 48.7% growth in online sales for the 53 weeks, led by asap! and PnP groceries on Mr D. Pick n Pay asap! has grown to 600 locations and franchisee adoption of asap! has doubled in two years, with new growth potential unlocked with the launch of the new asap! App.
The growth in scale has now resulted in achieving profitability on a fully costed basis, the group said. “We are very happy with our balance between clicks and bricks,” said Summers.
Pick n Pay Clothing delivered 11.6% growth from standalone stores in FY25 and reported market share gains. It opened net 30 company-owned stores during FY25, to bring the total estate to 415 stores.
In the 8 weeks post period-end, the Pick n Pay segment’s South African turnover grew 0.8%, with like for-like sales +3.8%. Company owned supermarket like-for-like sales growth strengthened further to +4.0%, while franchise continued its like-for-like sales recovery to +2.1%.
Investors have been cheered by signs of recovery from the retailer, with its share price up some 32% over the past year, but off a low base.
