‘More than 80% of the staff are redeployed within the group or voluntarily elect early retirement or retrenchment.’
Pick n Pay has announced that it has closed the doors of 32 stores and converted five company-owned supermarkets to franchises.
The group said in its trading update for the 45 weeks ended 5 January 2025 that store closures are part of the “Store Estate Reset” plan.
“Implementation of the Store Estate Reset plan resulted in total sales lagging like-for-like sales momentum, which was a natural consequence of the planned store closures and conversions.”
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Redeployment of Pick n Pay staff
The giant retailer told The Citizen that all staff affected by the store closure and conversions are consulted according to the necessary processes.
“More than 80% of the staff are redeployed within the group or voluntarily elect early retirement or retrenchment.”
Pick n Pay’s performance
The group (including SA and the rest of Africa) recorded improvements with like-for-like sales growth of 1.6% and 1.9% for Pick n Pay South Africa.
Leaving out like-for-like sales, the group’s sales declined by 0.4%, while PnP SA recorded a decline of 0.1%.
Online sales increased by 42.5%, driven by the continued growth of Pick n Pay asap! and Pick n Pay Groceries on the Mr D app.
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PnP Clothing
The trading update added that Clothing sales growth in standalone stores (reported within the PnP segment) was 10.0%, or 1.7%, when considering the like-for-like comparison.
“Clothing sales momentum improved in the latter 19 weeks of the period to 10.3% (3.6% like-for-like), vs. 9.8% (0.2% like-for-like) previously reported for H1 FY25.”
Boxer remains a star
This is Boxer’s first update since listing on the Johannesburg Stock Exchange (JSE) on 28 November 2024.
The discount retailer recorded 11.4% sales growth and 6.7% like-for-like growth, making it the group’s key growth driver.
“Boxer is on track to meet its FY25 guidance on Superstore rollout, including PnP conversions.
“However, delays in granting liquor licences for several planned liquor store openings have impacted them.
“Boxer is pushing to finalise the outstanding licences before the financial year ends, but the outcome is not fully within management’s control.”
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