Retailer Pick n Pay Stores has reported a mixed trading performance for the 45-week period ending 5 January 2025, as it navigates the challenging retail landscape with a focus on improving operations.
While the company saw overall sales growth of 3.6%, a significant component of its strategy – the planned store closures and conversions under the “Store Estate Reset” plan – has impacted total sales figures, leading to a net closure of 32 supermarkets across South Africa.
The group’s SA operations closed 24 company-owned stores and 8 franchise stores, including the conversion of five company-owned supermarkets to franchise operations. This move is part of a broader effort to streamline operations and reposition stores for long-term sustainability, despite the natural consequences of reduced overall sales during the transition period.
Despite the closures, Pick n Pay’s like-for-like sales in its core supermarket segment showed improvement, rising 1.6% for the period. Pick n Pay South Africa, in particular, demonstrated solid growth momentum, with a 3.0% increase in like-for-like sales during the final 19 weeks of the period.
The Group remains optimistic, with the performance of Boxer Retail Limited standing out as a bright spot. Boxer, which operates in the lower-income segment, saw an 11.4% sales growth, including a 6.7% increase in like-for-like sales, reflecting strong demand for affordable groceries in both local and regional markets.
In the clothing sector, standalone Pick n Pay clothing stores experienced a 10% sales increase, with momentum accelerating to 10.3% during the final 19 weeks of the period.
Online sales also showed robust growth, rising by 42.5% as consumers increasingly turned to Pick n Pay’s e-commerce offerings, including the popular Pick n Pay asap! service and groceries through the Mr D app.
While store closures have impacted overall performance, the company is confident that its continued focus on improving retail disciplines, enhancing customer value, and refining its store estate will set the stage for further growth in the years ahead.
The group’s efforts to modernize its operations, combined with the strong performance from Boxer and online sales, reflect a balanced approach to navigating industry challenges while positioning for long-term success.
Shares in Pick n Pay have recovered remarkably over the past year, up more than 40%.
