The South African Ackerman family, known for their extensive wealth and investments, has incurred a substantial year-to-date loss exceeding $205 million due to their holdings in the retailer, Pick ‘n Pay, as investors continue to reduce their positions, causing a significant downturn in the company’s stock price.
Data tracked by Billionaires.Africa reveals that the Ackerman family’s stake in the retailer has dwindled by R3.06 billion ($205.37 million) since the beginning of the year, reflecting sustained pessimism on the Johannesburg Stock Exchange (JSE).
Founded in 1967 by the late Raymond Ackerman, who passed away just 12 days ago, Pick ‘n Pay maintains a dominant presence in South Africa’s retail sector, ranking as the second-largest retailer after Shoprite Holdings.
With a widespread footprint encompassing more than 2,000 stores across eight African nations, the brand has cemented its position as a household name in the Southern African region.
The Ackerman family, renowned for their wealth, extensive real estate investments, and private holdings, holds a significant 25.53-percent stake in Pick ‘n Pay, equating to a total of 124,677,238 shares in the retail giant.
Since the start of the year, Pick ‘n Pay shares have witnessed a significant decline of 42.27 percent, plummeting from R58.13 ($3.072) on Jan. 1 to R33.56 ($1.773) as of Sept. 19. This has resulted in substantial financial losses for shareholders, including the late Raymond Ackerman’s family.
As a result of the decline in Pick ‘n Pay’s share price, the company’s market capitalization has fallen below the $1-billion mark to R16.56 billion ($812.80 million), relegating it from the list of South African billion-dollar firms.
The decline in Pick ‘n Pay’s shares has led to a decline of R3.06 billion ($205.37 million) in the market value of the Ackerman family’s stake in the retailer since the start of the year. Their holdings fell from R7.25 billion ($426.26 million) on Jan. 1 to R4.18 billion ($220.89 million) when drafting this report.