South Africa’s Ackerman family faces $22-million loss in just two weeks

The Ackerman family, one of South Africa’s wealthiest families, has suffered a significant blow to their fortune, experiencing a substantial decline of nearly $22 million in just two weeks. This setback is attributed to the sustained decrease in the market value of their stakes in the prominent retailer, Pick ‘n Pay.

Despite this recent downturn, the Ackerman family continues to maintain their position among the country’s richest families and top investors on the local bourse. However, the decline in the market value of their joint stake adds to the significant losses they previously endured on the Johannesburg Stock Exchange.

Pick ‘n Pay, founded in 1967 by Raymond Ackerman, remains a major player in South Africa’s retail landscape, ranked as the second-largest retailer behind Shoprite Holdings. With more than 2,000 stores across eight African countries, the company has been a staple in the region’s consumer market.

The Ackerman family, known for their extensive assets in real estate, private investments, and shares in publicly listed companies, holds a substantial 25.53-percent stake in Pick ‘n Pay, which amounts to 124,677,238 issued shares.

In recent times, the leading retailer, led by Gareth Ackerman, Raymond Ackerman’s son, witnessed a decline in its share price on the Johannesburg Stock Exchange. The company’s shares slumped to R37.54 ($2.101), representing a 7.7-percent decrease from a price of R40.67 ($2.276) on July 14.

As a result of this significant decline, the retailer’s market capitalization fell below $1.1 billion to R18.5 billion ($1.04 billion), causing it to lose its standing as one of the most valuable companies in South Africa.

The sustained decline in Pick ‘n Pay’s shares led to a decrease of R390.2 million ($21.86 million) in the market value of the Ackerman family’s stake in the retailer over the past two weeks. The family’s stake decreased from R5.07 billion ($284 million) on July 14 to R4.68 billion ($262 million) at the time of this report.

Despite the recent challenges, the Ackerman family’s legacy endures, underlining their continued significance in South Africa’s economic landscape. The market’s attention now turns to how they will navigate these challenging times and re-establish their stronghold on the Johannesburg Stock Exchange and beyond.