Shares in Pick n Pay rose sharply on Friday after the retailer said it expected to halve its interim loss for the first half of its 2026 financial year due to stronger trading at Boxer and signs of recovery in its core supermarket business.
In a trading update for the six months to end-August, the retailer said it expected a headline loss of R399m-R479m, narrower than the loss of R803m in the same period last year.
The headline loss per share is expected to decrease 50%-60% to 54.31c-67.97c, compared with a loss of 136.6c previously.
The group’s shares closed 8.57% higher on Friday at R29.90, having risen 14.65% in the past six months, though year to date shares are down 2.6%.
The improvement comes as Pick n Pay rolls out its turnaround plan and benefits from lower funding costs after last year’s capital raise.
Group turnover rose 4.9%, with like-for-like sales up 4.7%, on firmer trading across its supermarket formats in recent months.
Boxer again led the way, with turnover up 13.9%, while Pick n Pay grew like-for-like sales 4.3%. Online sales climbed 34.4%, driven by the growth of Pick n Pay asap! and its partnership with Mr D.
Selling price inflation remained contained at 2.1%, well below national food inflation of 4.6%, reflecting the tough consumer environment.
“Pick n Pay’s turnaround plan is showing green shoots. The narrowing of the interim loss shows signs that the execution of the plan put out by management is making progress,” said MP9 Asset Management chief investment officer Aheesh Singh.
The retailer will publish its interim results on October 27.
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