Pick n Pay expects smaller losses as Boxer does the heavy lifting

Pick n Pay says it expects its half-year losses to decline by at least 25% following an improvement in the group’s trading profit. At most, it projects losses would narrow by 35%.

This is again mostly thanks to its standout performer, Boxer.

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The discount retail chain delivered trading profit growth and the Pick n Pay segment delivered a moderately reduced trading loss.

The group released a trading statement for the 26 weeks ended 30 August 2026 on Thursday.

“The group notes that the large percentage reduction in the expected headline loss per share is partially a function of the relatively small absolute H1 FY26 headline loss (R439 million), which means that a moderate reduction in the absolute headline loss leads to a relatively large percentage change,” the retailer said.

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Snapshot of Pick n Pay’s first half projections

Image: Sens

Pick n Pay plans to release its half-year financial results on Sens on Monday.

Withdrawal of Section 189A consultation process

In a stunning turnabout in the retailer’s retrenchment plans, the group also confirmed a breakthrough agreement with the majority labour union, the South African Commercial Catering and Allied Workers Union (Saccawu).

The exact details of the agreement are unknown, except that: “Shareholders are advised that Pick n Pay has reached agreement with Saccawu, its primary labour partner, marking a successful conclusion to the consultation process.

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“As a result, the Company has formally withdrawn the consultation process initiated in terms of Section 189A of the Labour Relations Act.”

Pick n Pay declined to provide further details before the release of the interim results.

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Pick n Pay initiates Section 189 process to reset labour cost base
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Earlier this year, it announced it was tackling the high cost and inflexibility of its store staffing as the next step in its long-term turnaround strategy, which continues under CEO Sean Summers.

While the affected labour union claimed it would lead to job losses in the thousands, Pick n Pay rebutted that the process is not “intended” to reduce headcount, but rather to “bring the retailer’s labour practices more into line with its competitors, to compete on an even footing”.

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