CEO Sean Summers outlines Pick n Pay's turnaround strategy for 2026

Pick n Pay’s 2025 financial year represented the first leg in what will be a multi-year turnaround to sustainable, long-term profitability, CEO Sean Summers said in the annual report.

The Pick n Pay trading loss had been reduced by two thirds, against the group’s target of a 50% reduction, and it was debt free. The supermarket estate was leaner, stronger, more targeted and better positioned for profitability.

“This progress is only the beginning, it is meaningful and has laid the essential groundwork for the next phase of recovery,” he said.

Priorities for the 2026 financial year were to raise execution standards across the store network, accelerate investment in the estate, enhance the offer, and embed operational efficiencies that drive performance and simplicity, he said.

He said that in 2025, the successful execution of a two-step Recapitalisation Plan had restored the balance sheet to a net cash position. “This was a significant achievement, delivered at pace. To execute a full debt restructure, a rights offer and a major listing in a single financial year is extraordinary by any standard, and was a fundamental enabler of our turnaround,” Summers said.

Over the past year, regional structures were reinstated to improve local decision-making and accountability. Investment in employee training was increased, particularly in customer service excellence, leadership accountability was strengthened, and key cultural programs were relaunched to restore capability, morale and pride across teams.

The Pick n Pay supermarket business had returned to positive like-for-like growth. Sales in company-owned stores improved 3.6% in the second half of the 2025 financial year and this momentum had continued to strengthen into the 2026 financial year, he said.

Improvements in product availability, pricing, promotion and execution were driving progress, reflected in both sales and customer count recovery – “a signal that our core offer is regaining relevance,” said Summers.

And while much of the early progress had been most visible in the company-owned estate, franchise partners were now also seeing improved results as operational support provided to them strengthened.

The Clothing business was consistently gaining market share across key categories. Partnerships were playing an increasing role in the recovery. For instance, alliances with banking partners ABSA and FNB had proven powerful engagement drivers, supported by compelling and innovative in-store campaigns.

“Our new four-year sponsorship of the Springboks has significantly elevated brand visibility and resonance. Across our franchise, supplier and platform partnerships, we are strengthening collaboration to unlock shared value."

In line with a measured approach to the turnaround, the break-even timeline for the Pick n Pay segment was increased to the 2028 financial year from the 2027 year, reflecting “our deliberate commitment to invest ahead of the turnaround, in order to drive recovery and sustainably rebuild core retail capability and operational resilience for long-term success, rather than chasing short-term gains.”

A store reset program in 2025 had included converting 8 under-performing stores to Boxer, converting 7 stores to the Pick n Pay franchise model, closing 25 loss-making stores not suitable for conversion, working with landlords to right-size certain locations and improve trading densities, targeted refurbishment and maintenance, and a shift in focus from scale to profitability, committing to a smaller, higher-quality store base.

CFO Lerena Olivier said they were entering the 2026 year with restored liquidity, a more agile balance sheet and a stable platform for disciplined growth. “The work done this year has created the stability we need to rebuild profitability and unlock future value for all our stakeholders,” she said.

The group had completed a two-step R12.5 billion recapitalisation over the course of 2025. There had been strong participation in both the Pick n Pay rights offer and Boxer IPO by the investment community.

“While Boxer is set to continue its growth, there is still hard work ahead within the Pick n Pay business. Our focus remains firmly on restoring Pick n Pay profitability and rebuilding long-term shareholder value – deliberately, transparently and with discipline. The group will consider the resumption of dividends once the Pick n Pay business returns to sustainable profitability," the group directors said.

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