Pick n Pay narrows half-year loss by 31.9 percent to R299m

Pick n Pay has narrowed its headline loss and increased trading profit in the first half of FY27, as the retailer’s turnaround gains traction amid tough trading conditions and ongoing pressure on consumers

Pick n Pay has narrowed its headline loss by 31.9% to R299 million and increased group trading profit by 58.1% to R490 million in the first half of the 2027 financial year.

The retailer reported its interim results for the 26 weeks ended 30 August 2026, with group turnover growing by 2.4% and gross profit margin improving by 0.7 percentage points to 18.8%.

Group chief executive Sean Summers said the business was making progress despite market pressures.

“We have put the fundamentals in place, and they are delivering, despite the constrained trading environment,” he said.

The group’s loss before tax and capital items narrowed by 56.2% to R139 million, from R317 million in the previous comparable period.

However, the Pick n Pay supermarket business continued to struggle, reporting a trading loss of R516 million, although this was 16.9% lower than a year earlier.

Boxer remained a key contributor, increasing its trading profit by 8.1% to R1 billion.

Company-owned Pick n Pay supermarkets in South Africa recorded like-for-like sales growth of 2.4%, ahead of internal selling price inflation of 1.5%, indicating positive sales volume growth.

Summers said improving the customer experience remained central to the turnaround, with more than 50 new and upgraded fresh product lines introduced during the year.

Pick n Pay’s South African turnover declined by 0.5%, improving on the 1.4% decline recorded in the 2026 financial year.

The retailer also concluded consultations with its primary labour partners on a revised store labour model, with implementation set to begin on 1 November 2026.

Summers said the agreement would help put the business “on a more competitive footing, helps secure jobs, provides greater certainty for our employees and creates a stronger platform for future growth”.

Online operations delivered further growth, with Pick n Pay Online turnover increasing by 35.4% during the first half. Online clothing sales also rose by 137% between March and August compared with the same period last year.

The group ended the period with net cash on hand of R10 billion, including R7.7 billion within Pick n Pay.

Despite the improvements, Summers warned that elevated oil prices and pressure on consumers would make trading conditions difficult for the remainder of the financial year.

“Our foundations are stronger, and our hard work is delivering, despite a tough market, but there is still much to do. We must now build on this progress, further improve the customer experience and deliver the sustained sales growth and operational improvements needed to return Pick n Pay to profitability."