Massive loss incoming for Pick n Pay – BusinessTech

Pick n Pay is expecting its headline loss to increase to a minimum of R490 million amid lower turnover for the period.

In a trading statement for the 2026 financial year, the group told shareholders it expects the headline loss per share to increase by more than 20% from the 61.54 cents per share loss in FY25.

Given the headline loss of R407 million in FY25, the group’s headline loss in FY26 will thus be at least R489.6 million.

The group has no reasonable certainty around its expected earnings per share for FY26.

The expected increase in FY26 loss per share is due to below-forecast turnover, which has impacted the group’s previous guidance that the FY26 trading loss would be broadly in line with FY25.

“While the expected FY26 loss is a disappointment, the group notes the substantial on-the-ground
operational improvements that have been achieved to date, and that the Pick n Pay segment’s trading profit recovery will not be linear,” it said.

“Despite the macro challenges, the group continues to deliver on the strategic initiatives designed to return the Pick n Pay segment to profitability.”

The group also released a trading update for the 48 weeks to 1 February 2026, with group turnover and like-for-like sales up 3.2% and 3.4%, respectively.

Pick’n Pay South Africa’s like-for-like sales grew by 2.9%, with the Pick’n Pay SA company-owned supermarkets seeing like-for-like sales at 3.5%.

A 1.4% Pick n Pay SA turnover decline was due to the result of a, now largely completed, planned closure or conversion of underperforming company-owned supermarkets.

Boxer Retail turnover grew 11.9%, and 3.9% on a like-for-like basis. Pick’n Pay still owns a majority stake in Boxer after the value retailer’s IPO in 2024.

Group turnover for the last 22 weeks of the period increased 1.3%, including a 1.7% like-for-like increase.

The trading performance for the latter 22 weeks of the period was mainly driven by a soft November, reflecting general market conditions. Boxer also reported a weak Black Friday period.

Online turnover growth for the period was 31.8%, driven by Pick n Pay asap! and Pick n Pay groceries on the MR D app.

Clothing turnover growth in standalone stores for the period was 4.9% (0.4% like-for-like). The clothing market was exceptionally challenging over the last few months of the period, the group said.

This resulted in a year-on-year decline in turnover and like-for-like sales in the clothing segment for the last 22 weeks.

The group did stress that PnP Clothing had a strong base over multiple years compared to its peers, delivering like-for-like growth of 10.7% and 3.8% delivered for H2 FY24 and H2 FY25, respectively.

Pick n Pay SA’s internal selling price inflation for the period was 2.7%, which was below CPI Food of 4.5%.

Supermarkets show signs of life

The group noted that its supermarkets, which have been the primary driver of its heightened losses over the last couple of financial years, continued to face challenges, but did see improvements near the end of the period.

Its company-owned supermarkets, which account for the majority of PnP SA’s sales, recorded like-for-like sales growth of 3.5% for the period.

Like-for-like sales growth in franchise supermarkets for the period was 1.5%.

“The performance over the latter 22 weeks of the period was below expectation and the result of a highly constrained market, particularly over the extended Black Friday period,” it said.

On a month-by-month basis, like-for-like sales momentum in PnP SA Supermarkets grew moderately in September and October, declined in November, and grew in December and January.

“Like-for-like sales momentum is back on a growth trajectory for PnP SA Supermarkets, and recovered to mid-single-digit growth in Pick n Pay Clothing over January,” it said.

* RoA = Rest of Africa (operations outside South Africa)

This article has been updated to fix an error regarding the loss.