Pick n Pay's Turnaround Story: A Beacon of Hope in South Africa's Retail Landscape
In a promising reveal for the retail sector, Pick n Pay is showing positive signs of recovery as part of its strategic turnaround plan. The retailer recently announced its performance for the six months ending August 31, 2025, and the figures are indicative of a business on the mend. Group sales climbed by an impressive 4.9% year-on-year, with losses more than halved, showcasing the efficacy of the company’s revitalization efforts.
A key player in this turnaround has been Pick n Pay’s discount chain, Boxer, which stood out with a remarkable 13.9% increase in sales, further solidifying its position as one of South Africa’s fastest-growing grocery brands. CEO Sean Summers expressed optimism about the company’s trajectory, noting, “Boxer continues to perform very well, our supermarket sales are improving, and we are on track with our turnaround plan.”
Sales growth was particularly notable in the core Pick n Pay supermarket division, which reported a 4.8% increase, significantly outpacing the internal inflation rate of 2.1%. The retail giant also observed a significant 34.4% surge in online revenue, fueled by the expansion of its asap! delivery service and its collaboration with Mr D. Moreover, Pick n Pay Clothing celebrated a milestone with a 12% rise in sales and the grand opening of its 400th stand-alone store.
As part of its comprehensive restructuring, Pick n Pay has undertaken a “Store Estate Reset,” which involves strategically closing underperforming sites and reallocating investments towards more profitable outlets. The retailer is committed to maintaining price competitiveness, successfully keeping inflation rates within the group below the national food inflation, which stands at 4.6%.
Looking ahead, Pick n Pay plans to invest a staggering R2.2 billion in capital expenditure this year, primarily aimed at accelerating Boxer’s expansion and enhancing its overall supermarket offerings. The company is also enhancing customer engagement, with 600,000 new members joining the Smart Shopper programme, resulting in loyalty-linked sales up by 9%.
In addition to prioritizing customer satisfaction, Pick n Pay has entered into a long-term partnership with global logistics powerhouse DP World, which will allow for modernizing and streamlining its supply chain operations—an initiative that promises operational benefits starting in 2027.
Despite the financial pressures faced by South African consumers, Summers remains optimistic. “Our focus now is on improving how we serve customers and running stores better. The hard work we’re doing today will help us return to profit in the future,” he stated. This dual focus on customer service and operational excellence underlines Pick n Pay’s dedication to not just weathering the storm, but emerging stronger on the other side.
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