Pick n Pay today announced its results for the 52 weeks ended 1 March 2026 (FY26), reflecting steady progress in its multi-year turnaround strategy, with underlying operational improvements across the core Pick n Pay supermarket business, and another year of strong growth from Boxer.

Pick n Pay’s systematic execution across its six strategic priorities announced in 2024 is strengthening the foundation for a sustainable recovery and long-term profitability. Three priorities have largely been completed – the recapitalisation of the business, the re-establishment of leadership structures, and the reset of the store estate. The remaining priorities are focused on restoring competitiveness, including the recently announced labour consultation process crucial to building a more competitive Pick n Pay.

Key FY26 highlights:

• Group turnover increased 3.4% (52/52w basis), with 12.3% growth from Boxer and a 1.6% decline from Pick n Pay as a result of store closures under the store reset
• Company-owned Pick n Pay supermarkets recorded like-for-like sales growth of 3.9%
• PnP SA internal selling price inflation at 1.9% – well below CPI food inflation of 4.4%, with deflation in Boxer at -1.2%
• Online business recorded a strong FY26, with turnover increasing by 32.7% (52/52w basis).
• Gross profit margin expanded 0.5% to 18.8%, with improvement in both Pick n Pay and Boxer
• Group trading profit declined 4.2% to R1.7 billion, due to the combined result of a R330 million increase in Boxer trading profit (to R2.6 billion) and a R404 million increase in the Pick n Pay trading loss (to R1.0 billion).
• While the Pick n Pay segment reported a larger FY26 trading loss vs FY25 as it continued to reposition the supermarket business, the Group reduced its Headline loss by R45 million to R363 million

Commenting on the results, Pick n Pay CEO Sean Summers said the turnaround strategy remained firmly on track, supported by improving topline growth, renewed operational disciplines, and careful cash management.

“While Pick n Pay’s FY26 trading loss increased, the business today is fundamentally stronger than it was two-and-a-half years ago as a result of the action we have taken and the investments we have made. We now have the balance sheet strength to support our return to profitability, but achieving break-even in Pick n Pay requires the successful execution of all six strategic initiatives, including the recalibration of our total employment costs.”

“We are now taking the difficult but necessary step of addressing our structurally high store labour costs through the formal Section 189 consultation process announced a few weeks ago.  This should come as no surprise. One of the first issues I raised on my return was that we needed to address Pick n Pay’s significantly distorted labour cost base relative to competitors, a major cost block.

“Our objective is clear: to align our cost structure with industry standards while safeguarding jobs wherever possible.  As an alternative to retrenchments, we have proposed a fair and competitive labour model that we believe offers a sustainable solution for all affected employees. Over multiple years successive labour concessions have materially compromised our cost base and this is now critical to address as we remain loss making.  This process is not about reducing our workforce, but about ensuring the long-term viability of our business and protecting employment into the future.

“Without this recalibration, we cannot solve the Group’s cost base or return the business to profitability in a thin-margin industry. We have engaged with organised labour structures on this issue for more than two-and-a-half years without progress and are now in a formal consultative process with our labour partners (the unions) and with those employees directly that do not have union representation.  The process is being facilitated by the CCMA. I am confident we will make our way through this with our labour partners.

“To be abundantly clear we have already taken action on our management and support office staff costs, with a salary freeze alongside the implementation of a future-fit structure that has seen a significant reduction in head count. The bulk of our labour cost is incurred in stores and operations and it is now time to deal with this remaining major cost block”

The steady improvement in company-owned Pick n Pay supermarket like-for-like sales growth – up to 3.9% vs 3.3% in FY25 – and the simultaneous improvement in the Pick n Pay segment’s gross profit margin by 0.4%, confirm the turnaround is heading in the right direction. The company is also encouraged by positive momentum in our customer growth over the past two years.

Pick n Pay has delivered improvements in store standards, product availability and product range, particularly across Fresh categories. Progress has also been made across several key priorities, including shortage reduction, support office efficiencies and supply chain optimisation, supported by a materially improved logistics contract and enhanced marketing initiatives.

“Our store estate reset is effectively behind us, and we have achieved some of the key milestones we set ourselves in our strategy.  The positive customer feedback that we are getting is really very encouraging,” says Summers.

The R4.7 billion Boxer share placement completed after year-end on 18 May 2026 further strengthened the Group’s balance sheet and financial flexibility, supporting continued investment in key turnaround priorities and operational improvements, while allowing Pick n Pay to retain a controlling stake in Boxer. “The Boxer capital raise is a crucial part of ensuring we have the funding and balance sheet strength required to complete this turnaround journey,” says Summers.

Summers concludes:

“As we move into Pick n Pay’s 60th year, the work we are doing is fundamentally shaping a new company for our customers – who are at the heart of everything we do.

“We continue to see encouraging progress across the business, but the reality is that the challenges facing Pick n Pay developed over an extended period. This means that rebuilding the business into a leading supermarket retailer again will take time, disciplined execution and difficult but necessary decisions.

“Current market conditions will add some pressure in the coming trading period, with higher diesel prices driving inflation and placing even more strain on an already overburdened consumer. However, this is affecting the whole retail sector and not just us, and it is our job to control the controllables.

“Encouragingly, in the nine weeks post period-end, the Pick n Pay segment’s South African supermarket like-for-like sales growth was slightly ahead of FY26 levels. We have a clear path to sustainability, driven by ongoing incremental gains, and remain confident that the initiatives we have put in place are starting to bear fruit as we rebuild a stronger, more competitive Pick n Pay for the long term.”