Pick n Pay closes 19 stores, loses R299m. What changes on 1 November
Pick n Pay lost R299 million in the six months to August 2026, down from R439 million, and closed 19 supermarkets in a year. A new store staff model starts on 1 November and there is no dividend.
Pick n Pay lost R299 million in the six months to 30 August 2026, down from a R439 million loss a year earlier, the retailer told shareholders on Monday, 26 October (SENS via Moneyweb). It also closed 19 supermarkets over the past year, leaving it with 520 (BusinessTech).
The group is still in the red and is not paying a dividend until it returns to profit (BusinessTech).
Why is Pick n Pay still losing money?
The problem is the Pick n Pay supermarket business. It made a trading loss of R516 million, smaller than the R621 million loss a year ago but still a loss (BusinessTech). Once lease interest is counted, that business lost R1.1 billion, and the company says "substantial further profitability improvement" is still needed (SENS via Moneyweb).
Boxer, its discount chain, is carrying the group. Boxer grew turnover by 6.3%, lifted trading profit to R1 billion and opened its 600th store (SENS via Moneyweb).
The key numbers for the 26 weeks (SENS via Moneyweb):
- Group turnover: R60.5 billion, up 2.4%
- Group trading profit: R490 million, up from R310 million
- Headline loss: R299 million, 31.9% smaller
- Cash on hand: R10 billion, including R7.7 billion in Pick n Pay
What changes for Pick n Pay staff on 1 November?
Pick n Pay says the deal with its unions that ended the Section 189A process (our earlier report) creates a "simplified and more competitive store labour model" with more flexible scheduling (SENS via Moneyweb). Implementation starts on 1 November 2026, the retailer said (BusinessTech).
The results announcement does not spell out what changes for individual workers, such as hours or pay. CEO Sean Summers said the agreement "helps secure jobs" (BusinessTech).
Will more Pick n Pay stores close?
The company has not named any further closures in its results announcement. The 19 closures came over the last 12 months as part of the turnaround plan that started in 2024 (BusinessTech).
Is the turnaround working?
Slowly. Like-for-like sales at company-owned South African supermarkets grew 2.4%, and gross margin rose to 18.8% (CNBC Africa/Reuters). Online sales jumped 35.4% (BusinessTech).
Pick n Pay is aiming to break even at the trading profit after lease interest level in its 2029 financial year. It warned that higher fuel prices since May and food inflation mean it has "low" visibility on trading for the rest of this year (SENS via Moneyweb).
FAQ
How much did Pick n Pay lose in the first half of 2026?
Pick n Pay reported a headline loss of R299 million for the 26 weeks to 30 August 2026, 31.9% smaller than the R439 million loss a year earlier.
How many Pick n Pay stores have closed?
Pick n Pay closed 19 supermarkets over the past 12 months, leaving 520, according to BusinessTech's report on the results.
When does Pick n Pay's new store labour model start?
Pick n Pay says implementation of the new store labour model agreed with its unions starts on 1 November 2026.
Is Pick n Pay paying a dividend?
No. Pick n Pay did not declare a dividend and does not expect to until it returns to profit.
When does Pick n Pay expect to break even?
Pick n Pay is targeting break-even at the trading profit after lease interest level in its 2029 financial year.