Pick n Pay has extended CEO Sean Summers’ contract until May 2028, securing his leadership through the retailer’s critical turnaround phase.
The group brought back Summers in late 2023 to lead its turnaround, following several years of strategic missteps, which lead to it losing market share to rivals.
The group, worth just under R20bn on the JSE, said the extension of Summers’ contract ensures continuity and stability in the leadership team during a “period of significant strategic” transformation.
“It also allows for a considered and deliberate succession process, including a comprehensive handover period in due course. Under Sean’s steady and decisive leadership, the group has stabilised, executed a successful recapitalisation and begun implementing a clear and actionable turnaround plan,” it said.
In another nod of confidence in Summers, he was also appointed to the crucial role of chair of Boxers’ board.
He will take the role in February 2026, replacing James Formby who is going to take the chair role at Pick n Pay — ending the founding Gareth Ackerman’s multiyear chairmanship of the group.
“The board is confident that Sean’s extensive retail experience and strategic insight will support the continued growth and performance of the company,” Boxer said.
Pick n Pay spun off Boxer last year, with the latter now worth just under R30bn on the JSE.
Formby, a former Rand Merchant Bank CEO, succeeds long-serving chair Ackerman, the group said in an announcement.
Formby, currently Pick n Pay’s lead independent director and chair of Boxer, will take over the role after the AGM in August. Pick n Pay said Formby would step down as chair of Boxer at the end of the 2026 financial year.
“James was appointed as lead independent director in July 2023 and has since played a key role in guiding the Pick n Pay turnaround strategy and in overseeing the successful execution of the group’s two-step recapitalisation plan. The board welcomes his appointment and looks forward to his continued leadership.”
Ackerman, who led the Pick n Pay board for 15 years, will remain a part of it, however, as a nonexecutive director and continue to serve on various committees.
“Gareth’s tenure spanned a period of considerable change and disruption in the retail sector, including a highly competitive trading environment, the unprecedented challenges of the Covid-19 pandemic, changes in executive leadership and the centralisation of the group’s supply chain,” Pick n Pay said.
“Under his principled leadership, the group navigated these complexities with resilience and integrity. Gareth was instrumental in securing the return of Sean Summers as CEO — an important milestone in restoring Pick n Pay to its rightful place in the SA retail sector.”
The Ackerman family’s investment vehicle, Ackerman Investment Holdings, last year ceased nominating the positions of chair, CEO and CFO, while the family’s representation on the board was reduced from five to three.
Meanwhile, in a trading update on Thursday, Pick n Pay said it has reduced its headline earnings losses for the 2025 financial year, showing a slight recovery after a tough year.
However, the results which will be published on Monday, will show the group is not back to profitability.
Pick n Pay warned that the core brand continues to generate losses on a trading profit after lease interest basis, a trend that is expected to persist in the short term.
“While the guided result signals a very meaningful FY25 earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis, and the group cautions that this is likely to remain the case for some time,” it said.
The company has said it expects to return to profitability in the 2027 financial year.
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