In the aftermath of a leadership shakeup and a concerning trading update, Pick ‘n Pay, a retail giant founded by the late Raymond Ackerman, witnessed a dramatic 14.95-percent drop in its share price on the Johannesburg Stock Exchange in just 24 hours.
This decline resulted in substantial losses amounting to millions of dollars for the wealthy Ackerman family, who have a significant stake in the company.
According to data provided by Billionaires.Africa, Pick ‘n Pay shares owned by the multimillionaire Ackerman family saw their market value plummet by more than R689.5 million ($35.73 million) during the trading session on Mon., Oct. 2, 2023.
Pick ‘n Pay, founded in 1967 and holding a prominent position in South Africa’s retail sector, has been grappling with a challenging business environment. It ranks as the second-largest retailer in the nation, closely following Shoprite Holdings, and boasts an extensive network of more than 2,000 stores spread across eight African countries.
The Ackerman family, renowned for their wealth, expansive real estate ventures, and diverse private holdings, owns a substantial 25.53-percent stake in Pick ‘n Pay, equivalent to 124,677,238 shares in the retail behemoth.
The recent decline in Pick ‘n Pay’s share price from R37 ($1.92) at the opening of the Johannesburg Stock Exchange on Monday to R31.47 ($1.63) on Tuesday marked a concerning development for the Ackerman family.
This swift drop resulted in the market value of their Pick ‘n Pay holdings shrinking from R4.61 billion ($239.06 million) to R3.92 billion ($203.33 million) within 24 hours.
This sharp decrease follows the group’s announcement of the abrupt departure of Pieter Boone, the CEO of Pick ‘n Pay. Boone, a South African business executive, stepped down from his position with immediate effect after serving a little over two years as the company’s leader.
His exit comes at a challenging juncture for the company, grappling with a variety of issues including a weak consumer environment, the financial impact of load-shedding, and heightened competition within the retail sector.
As Pick ‘n Pay navigates these challenging times, the board of directors is turning to Sean Summers, a seasoned Pick ‘n Pay veteran who served as the managing director and CEO for 11 years from 1996 to 2007.
Summers has been entrusted with guiding the company through its present challenges and revitalizing its market position.
