In a significant financial setback, the Ackerman family, one of South Africa’s most affluent and influential business dynasties, has reported a year-to-date loss amounting to $218.2 million from their joint stake in the leading retailer, Pick ‘n Pay.
The Ackerman family, known for their wealth, expansive real estate ventures, and diverse private holdings, owns a substantial 25.53-percent stake in Pick ‘n Pay, equivalent to a staggering 124,677,238 shares in the retail giant.
According to data tracked by Billionaires.Africa, the market value of the Ackerman family’s stake in the retailer has plummeted by R3.96 billion ($218.18 million) since the beginning of the year.
However, this decline in their fortunes reflects the sustained selling pressure in Pick ‘n Pay’s shares, which has seen the company’s stock price slump by 55.98 percent, from R56.79 ($3.126) on January 1 to R25 ($1.376) at the time of drafting this report.
Pick ‘n Pay’s share price plunge triggers decline in Ackerman family’s fortune
Pick ‘n Pay, founded in 1967, is a major player in South Africa’s retail sector, boasting an extensive network of more than 2,000 stores spanning eight African countries. It is the nation’s second-largest retailer, trailing behind Shoprite Holdings.
The downward trajectory in Pick ‘n Pay’s shares has not only affected the Ackerman family but also resulted in a drop in the company’s market capitalization below the $1-billion mark to R12.33 billion ($678.45 million). This marks the retailer’s ousting from the list of South African billion-dollar firms.
For the Ackerman family, this financial loss equates to a year-to-date decline of R3.96 billion ($218.18 million) in the market value of their Pick ‘n Pay stake.
Their holdings have decreased from R7.08 billion ($389.75 million) on January 1 to R3.12 billion ($171.58 million) as of the time of writing. This financial setback has marked a challenging period for one of South Africa’s most prominent business dynasties.
Dwindling earnings highlight Pick ‘n Pay’s ongoing challenges
Investors’ strategic move to trim their equity stakes in Pick ‘n Pay, amidst dwindling earnings, has spotlighted the formidable hurdles confronting the retailer. This has consequently translated into significant financial setbacks for shareholders, including the esteemed Ackerman family of the late Raymond Ackerman.
The Ackerman family’s substantial financial hit underscores the broader challenges facing the South African retail sector, which has witnessed fluctuations in recent times.
As they navigate this period of economic uncertainty, the Ackerman family faces a financial test that has significant implications for their standing as prominent business leaders in the nation.
