Pick n Pay Shuts 56 Stores as Retailer Pushes Ahead With Turnaround Strategy
Pick n Pay Shuts 56 Stores as Retailer Pushes Ahead With Turnaround Strategy. Pick n Pay has closed 56 stores across South Africa during its 2026 financial year as the retailer continues implementing a large-scale turnaround and restructuring strategy aimed at restoring profitability.
The retailer revealed the store closures in its financial results for the 52 weeks ended 1 March 2026, describing the move as part of a broader “store reset” programme that is now largely complete.
The restructuring affected multiple parts of the business, including supermarkets, hypermarkets, liquor outlets and franchise operations.
According to the group, overall turnover increased by 3.4% during the financial year, supported largely by strong growth from Boxer, which reported turnover growth of 12.3%.
However, turnover within the core Pick n Pay business declined by 1.6%, with the company attributing the drop partly to the impact of store closures linked to the reset strategy.
The retailer closed 39 company-owned stores during the year, although some of the closures were offset by 33 converted openings.
The largest reduction occurred within the franchised supermarket business, where store numbers declined from 260 in 2025 to 211 in 2026.
Pick n Pay also reduced its franchised liquor network, closing 29 liquor stores over the period under review.
Despite the restructuring, Pick n Pay Clothing continued to expand, increasing its footprint from 396 stores in March 2025 to 419 stores by March 2026.
Overall, company-owned stores across the group increased from 971 to 992, while franchised stores fell from 697 to 620, resulting in a net closure of 56 stores nationwide.
The retailer said there were signs that its operational recovery plan was beginning to show progress.
Company-owned supermarkets recorded like-for-like sales growth of 3.9%, an improvement from 3.3% in the previous financial year. The group also maintained internal selling price inflation below the national food inflation rate.
Online sales continued to perform strongly, with Pick n Pay’s online business reporting turnover growth of 32.7% during the year.
The group’s gross profit margin improved by 0.5% to 18.8%, although trading profit declined by 4.2% to R1.7 billion.
Pick n Pay chief executive officer Sean Summers said the company’s turnaround plan remained on track despite ongoing financial pressure.
Summers said the retailer had completed several major recovery milestones, including recapitalising the business, rebuilding leadership structures and resetting its store estate.
He also acknowledged that the turnaround process would involve difficult decisions, including labour cost reductions through the Section 189 consultation process announced earlier this year.
The company added that a R4.7 billion Boxer share placement completed in May 2026 had strengthened the group’s balance sheet and would support continued investment in the recovery strategy.
