The retirement of Mr Price co-founder and chair Stewart Cohen after more than four decades in the business marks more than a leadership handover at the value fashion retailer — it reflects a broader generational shift in SA’s retail sector.
This, as founding families like the Ackermans at Pick n Pay step back, is paving the way for a new cohort to shape the future of the industry.
In recent years the retail sector has seen a shift in leadership as many of the industry’s most prominent companies transition away from family-run businesses to institutional structures and professional management.
The change is reflected most recently in the departure of Cohen, who cofounded Mr Price in 1985 and helped build it into one of the country’s most recognisable fashion retailers. His retirement from the board signals the closing of a chapter in the sector.
Pick n Pay, founded by Raymond Ackerman in 1967, also entered a new phase in 2024. The Ackerman family, which had held majority voting control for nearly six decades, officially relinquished control after a R4bn recapitalisation and the listing of Boxer in 2024.
Gareth Ackerman, who was the second generation to lead the retailer, stepped down as chair earlier this year, ending direct family oversight at board level. Raymond died in 2023.
Similar transitions have already played out at Shoprite and Pepkor.
Whitey Basson, who built Shoprite into Africa’s largest grocery chain, stepped down as CEO in 2016.
Christo Wiese, long the dominant shareholder in both Shoprite and Pepkor, has largely stepped back but remains on the Shoprite board, and the families that originally owned Shoprite exited decades ago.
Pepkor was founded by Renier van Rooyen — a former mentor of Basson — who died in 2018.
The shift comes at a time when the retail arena is becoming more complex and competitive. Increasingly, retailers face mounting pressures from digital disruption, changing consumer behaviours and macroeconomic challenges such as slow growth and inflationary headwinds.
These factors have made it harder for family-run businesses to maintain their traditional governance structures without professionalising management and diversifying ownership.
Retailers like Shoprite and Woolworths have long recognised this shift, listed on the JSE and acted early to introduce professional management teams with deep expertise in operations, supply chains and technology.
One example, Pieter Engelbrecht, who took over as Shoprite CEO in 2017, has been instrumental in driving the group’s digital and geographic expansion strategies.
Engelbrecht, a chartered accountant, rose through Shoprite’s ranks over two decades before stepping into the top role. His leadership reflects a broader industry trend towards professional executives who bring specialised skills and corporate experience rather than family legacy.
Similarly, Woolworths appointed Roy Bagattini as CEO in 2020, just months before the Covid-19 pandemic disrupted retail worldwide. Bagattini, who previously worked at Levi Strauss, inherited a group grappling with the costly David Jones acquisition in Australia and complex supply chain issues.
His focus has been on stabilising operations, streamlining the brand portfolio and investing in online retail — all critical initiatives that require a sharp professional management approach.
Pick n Pay’s turnaround efforts also highlight the need for experienced executive leadership in the prevailing environment.
Sean Summers who, at 70, returned as CEO in 2023, is no stranger to the company or its challenges. He had previously served in the role from 2015 to 2020 before stepping down.
With Pick n Pay technically insolvent at the time of his return and facing fierce competition, Summers led a recapitalisation that raised R8.5bn, including the successful IPO of Boxer.
This capital injection was essential to stabilising the group and repositioning it for growth, but the long-term turnaround still requires sustained executive focus and strategic discipline.
Spar recently experienced a leadership transition amid operational disruption. Angelo Swartz took over as CEO in late 2023 after the retailer’s SAP system rollout encountered significant difficulties.
A long-serving executive within Spar’s group structure, Swartz is now tasked with restoring operational stability and guiding the business through its next phase of growth.
The group said earlier on Tuesday his responsibilities had been extended to include leading Spar SA after outgoing CEO Max Oliva ditched the company for McDonald’s SA.
In apparel retail, TFG has also embraced a new generation of leadership focused on innovation and digital transformation. CEO Anthony Thunström has overseen the launch of the bullish online platform Bash and spearheaded expansion into new categories like sportswear and beauty.
While the founding families still hold significant stakes in many of these retailers, their role has evolved. Rather than directly controlling daily operations or making all strategic decisions, many have transitioned into advisory roles or non-executive board positions.
Institutional investors and professional managers now play a larger role in governance and decision-making.
This generational handover is not without challenges. Family founders often embody the culture and long-term vision of their companies, and their departure can raise questions about maintaining identity and values.
However, the retail sector appears to be embracing the reality that future growth and resilience depend on agile, capable leadership attuned to modern retail dynamics. This is evident in the retailers’ operational strategies and their respective successes over the years.
The question now remains: can the current generation of leaders deliver on these companies’ founding promises and what does the future hold for the next cohort?
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