Pick n Pay, one of South Africa’s leading retail chains, has reported a narrowing of its half-year losses, signaling cautious progress in its turnaround strategy. For the 26 weeks ending 31 August 2025, the group posted a 4.9% increase in turnover, reaching R58.8 billion. This modest growth was largely driven by its discount subsidiary, Boxer, which delivered an impressive 13.9% surge in turnover to R22.52 billion. Boxer’s strong performance has become a cornerstone of the group’s recovery efforts, providing a financial buffer amid ongoing challenges in Pick n Pay’s core retail operations.
The main retail division, however, continues to struggle. Turnover growth was virtually flat at 0.1%, totaling R36.30 billion, a reflection of subdued consumer spending and the impact of nearly 60 store closures. These closures were part of a broader restructuring plan aimed at streamlining operations and cutting costs. Despite these setbacks, the group remains committed to its long-term strategy under the leadership of CEO Sean Summers, who has projected that core operations will only reach break-even by the full-year 2028.
Pick n Pay’s recapitalization efforts, including Boxer’s separate listing in 2024, have helped stabilize the business and restore some investor confidence. The company is now focused on operational efficiency and strategic investment in high-performing segments. While the flagship brand faces headwinds, Boxer’s growth trajectory offers a promising path forward, especially in South Africa’s price-sensitive market. The group’s ability to adapt to shifting consumer dynamics and maintain momentum in its discount segment will be critical to its recovery.
Looking ahead, Pick n Pay’s leadership is betting on disciplined execution and targeted innovation to drive profitability. The narrowed losses reflect incremental progress, but the road to full recovery remains long and complex. As the retail landscape evolves, the company’s resilience and agility will determine whether it can reclaim its position as a dominant force in South African retail.