Pick n Pay has delayed its break-even target by a year, now expecting to reach profitability only in its 2028 financial year.
CEO Sean Summers says the revision reflects the group’s deliberate decision to build long-term strength rather than chase quick fixes.
“When I returned in October 2023 I said this would be a multiyear journey, and that it would get worse before it got better,” Summers said, adding that he had previously flagged the possibility of some slippage, citing delays in building momentum, appointing the right leadership team and making upfront investments essential for a proper turnaround.
The main challenges delaying Pick n Pay’s recovery were structural inefficiencies and the need to reorganise the business for long-term sustainability, he said.
“You do not turn a supertanker around overnight. We need to fix the operating structure and invest ahead of the recovery.”
Summers, who has recently extended his tenure to 2028, rejected the idea of pursuing short-term gains just to meet an earlier timeline. He said it was not about quick wins. He could have left and handed over but wanted to see it through.
‘Future fit’
“It is part of my life legacy. So, for me to extend it through to May 2028 is an honour. It is a privilege to continue to lead this company and to see it restoring itself to its rightful place.”
Summers said the next 18-24 months would be focused on making Pick n Pay “future fit”. He said that he when leaves in May 2028 he would like to leave behind a company “that is once again self-sufficient and sustainable, a company that is profitable, a company that has a reinvigorated leadership and management team”. The real effect of rebuilding efforts would be judged over the next five to 10 years, he said.
The company’s turnaround plan has started to show results as the group narrowed its losses in the 53 weeks to end-March.
The group reported a headline loss per share for the year of 61.54c after a loss of 172.21c a year ago.
Its attributable loss after tax narrowed to R736m from R3.3bn a year ago. Trading profit surged more than fourfold to R1.76bn, boosted by another year of strong growth at Boxer and early signs of revival in Pick n Pay’s core supermarket operations.
The company declared no dividend for the year and while “well capitalised”, it said it would not be paying dividends “until it has returned to sustainable profitability”.
Pick n Pay acknowledged progress in reducing trading losses but conceded that the core business remained under pressure, especially when lease interest was included.
Streamlined platform
Also key to its turnaround strategy, the group said it had launched a powerful, new app that merged its on-demand delivery service asap!, Smart Shopper loyalty programme and value-added services into one streamlined platform. Marking its biggest digital milestone since 2020, the AI-powered app would deliver a faster, smarter shopping experience and was already in beta testing.
Online sales grew 48.7% in financial year 2025, and the online business was now profitable, it said. A revamped website, being launched in June, will also offer asap! deliveries from 600 locations without needing the app, at a lower R35 fee. The group is confident that its online business is ready for the next phase of growth.
“We now have all the pieces in place,” said retail executive for online Enrico Ferigolli. “Our latest upgrades enhance the customer experience and improve our efficiency and scalability. We’re positioned to grow faster than ever,” he said.
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