Store reset weighs on PnP sales, but underlying growth improves

Pick n Pay reported group turnover growth of 2.7% for the 20 weeks ended 19 July, while like-for-like sales increased 2.5%.

In a trading update released on Thursday morning, the retailer notes that underlying trading momentum in its core South African supermarket business improved over the first 20 weeks ended 19 July 2026, even as the group’s reported sales continued to reflect the impact of closing and converting underperforming stores.

Read:
Boxer sales growth slows as staple food deflation dents revenue
Pick n Pay wants to give CEO more shares to achieve turnaround

Pick n Pay uses like-for-like sales as a key performance metric that measures revenue generated by stores that have been open for the same period in both the current and previous year.

The measure excludes the impact of new store openings, closures and store conversions with the retailer’s reported sales continuing to be affected by its store estate reset.

Pick n Pay shares traded at R18.88 early on Thursday – 0.9% lower than the previous day.

Within the Pick n Pay business, turnover was flat year-on-year, but like-for-like sales grew 2.6%.

In South Africa, turnover declined 0.4%, while like-for-like sales increased 1.9%.

The retailer explains that the decline in reported turnover was the result of the recent completion of its planned closure or conversion of underperforming company-owned supermarkets.

Read:
Pick n Pay: Still a long way to go
‘Pick n Pay won’t be another Stuttafords’ – Sean Summers
‘We have no intention of selling down Boxer any further’

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Company-owned supermarkets, which account for the majority of Pick n Pay South Africa’s turnover, recorded like-for-like sales growth of 3.3% during the period, with implied like-for-like volume growth of 2%.

Franchise supermarkets reported like-for-like growth of 1.3%.

Both company-owned and franchise supermarkets showed improved like-for-like momentum compared with the second half of FY26.

Online and clothing 

Online remained a standout performer, with turnover increasing 37.5%, driven by continued growth in Pick n Pay asap! and grocery sales on the Mr D app.

Read: PnP adds AI magic to asap! as battle with Sixty60 escalates

Standalone clothing stores recorded turnover growth of 3.3%, although like-for-like sales declined 1.3%. However, this is an improvement on the 5.6% decline reported in the second half of FY26.

Internal selling price inflation moderated further to 1.3%, below CPI food inflation of 2.5%, which the retailer says reflected its continued focus on offering customers value.

Boxer continued to outperform the core Pick n Pay chain, with turnover growing 7.2%, although like-for-like growth slowed to 2.2% as deflation in staple food categories reduced basket values.

Market conditions, however, remain challenging.

Turnaround progress 

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The core Pick n Pay supermarket business is in the middle of a multi-year turnaround under CEO Sean Summers.

Moneyweb previously reported that of the six strategic priorities outlined by Summers in May 2024, two are complete – the recapitalisation of the group as well as a reset of its store estate.

The retailer planned to close as many as 100 of its loss-making company-owned supermarkets set for conversion to either Boxer or Pick n Pay franchise stores, or close them.

In April, Summers said that 27 of the 101 outlets had turned profitable and would no longer be shut.

Update on Section 189A process

Pick n Pay notes that the consultation with the South African Commercial Catering and Allied Workers Union (Saccawu) and other affected parties is continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA).

Read: Can fragile Pick n Pay survive a debilitating strike?

The retailer noted that the union has challenged the process through an application to the Labour Court and a dispute referred to the CCMA, with both matters still pending.

“The consultation process has not yet concluded, and no final outcomes have been determined,” it notes.

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