Pick n Pay CEO rewarded with R56.6m in shares as turnaround advances

Pick n Pay has shown a vote of confidence in CEO Sean Summers’ turnaround efforts, officially handing him ownership of half of the 4-million performance-based shares he was awarded last year.

The company said that 2-million shares to the value of R56.6m vested at the end of October after two pillars of the turnaround strategy were successfully implemented.

The pillars, including a new leadership and operational structure, form a part of the group’s multi-year plan to restore the struggling core Pick n Pay business back to profitability after it failed to adapt to changes in the sector, leading to billions in losses, a failed Ekuseni strategy and a loss of market share.

“The board views this vesting as an important milestone in the delivery of Pick n Pay’s turnaround plan, marking the achievement of foundational structural and leadership objectives that underpin the next phase of the multi-year strategy,” Pick n Pay said.

The remainder of the shares will vest upon completion of the strategy which, according to the group’s latest annual report, includes the development of a CEO succession plan and breakeven, which is expected by 2028.

Summers was brought back to the group from retirement to reassume the role of CEO in October 2023 under a three-year contract, which was recently extended to May 2028 as the retail giant scrambles to find internal talent to groom for the position.

Upon his return, Summers prioritised the reversal of the failed 2022 Ekuseni strategy, which split the core business into two brands, including the Qualisave stores for lower- to middle-income shoppers and Pick n Pay for middle- to high-income shoppers.

In his two–year tenure, he has closed and converted multiple underperforming stores to other outlets and led the initial public offering of Pick n Pay’s discounter Boxer that raised R8.5bn in proceeds later used to clear the business’s debt.

He has been hard at work improving product offerings, leveraging partnerships and recapitalising the business. He recently told Business Day, however, that his main focus has shifted from quantity to quality, saying that the race to becoming the biggest retailer by scale was over.

For the 2025 financial year to end-March, Pick n Pay narrowed its losses, posting a headline loss per share of 61.54c after a loss of 172.21c in the comparable period.

Its attributable loss after tax narrowed to R736m. 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.

Summers earned a R25m basic salary with no additional benefits or short-term bonuses, according to the annual report.

For the interim period to August, Pick n Pay reported further improvements in its financials narrowing its headline loss per share to 59.77c in the 26 weeks to August, down from 136.6c a year earlier.

The group also cut net finance costs by 44.8%, driven by improved funding interest and lower lease interest at Pick n Pay, despite growth at Boxer.

Pick n Pay Clothing expanded its footprint by opening its 400th stand-alone store, boosting turnover by 12%, while online sales saw strong double-digit growth, reflecting growing competitiveness in digital retail.