Pick n Pay plans to open 100 new stores by 2026 as part of expansion strategy
Key Points
- Pick n Pay plans to open 100 new stores by 2026, including corporate and franchise locations, starting in mid-2025.
- The retailer's recovery strategy includes listing Boxer Superstores, a R4 billion ($229 million) rights offer, and exiting Nigeria.
- CEO Sean Summers aims to cut losses by half, modernize underperforming stores, and restore market share amid recent financial setbacks.
Pick n Pay, one of South Africa’s leading retailers is set to open 100 new outlets by 2026 as part of a major expansion initiative.
The retailer, partly owned by the South African billionaire Ackerman family, is positioning itself for a recovery following previous financial setbacks.
CEO Sean Summers outlined the company’s revitalization efforts, which include a public listing of the Boxer brand and the closure of underperforming stores.
This plan aims to not only boost Pick n Pay’s footprint across South Africa but also restore its financial health and market share, which have shrunk in recent years.
Expansion to begin in mid-2025
Pick n Pay’s growth strategy kicks off in mid-2025 with the opening of 100 new stores, including both corporate and franchise locations.
The expansion is part of a broader effort to enhance its presence in key markets and ensure continued competitiveness in the grocery retail sector.
The company will also modernize existing stores that have struggled to keep up with market demands, as it looks to improve customer experience and operational efficiency.
Revival efforts supported by $229 million rights offer
Pick n Pay’s recovery plan is further supported by a R4 billion ($229 million) rights offer, which helped the Ackerman family reduce its control over the business.
Additionally, the company plans to list its Boxer Superstores on the Johannesburg Stock Exchange, targeting a raise of up to R8 billion ($459 million).
Despite posting a core loss of R1.5 billion ($80 million) for the 2024 financial year, Summers expressed optimism about the retailer’s future.
He emphasized the “encouraging progress” made and affirmed the company’s goal to cut its losses in half, highlighting the significant changes already underway.
Pick n Pay has also made the strategic decision to exit Nigeria following financial losses in the region, opting to focus on markets with more favorable growth prospects.
Pick n Pay’s resilient future
With more than 2,000 stores across eight African countries, Pick n Pay is determined to leverage its strong presence in the retail sector.
The Ackerman family, which holds a 25.53 percent stake in the company, continues to play a significant role in its recovery and growth plans.
As the company works to modernize its operations and expand its reach, Pick n Pay’s recovery efforts signal a bold new chapter for the retailer, positioning it for long-term success in a competitive market.