Pick n Pay disappointed as it faces potential loss of nearly half a billion

Pick n Pay group CEO Sean Summers. Picture: Supplied Pick n Pay told shareholders it expects a larger financial loss than the one reported in the 2025 financial year due to a weak performance during the festive season, especially in November. The retailer on Tuesday said it expects the headline loss per share (HEPS) for financial year 2026 to increase by more than 20% when compared with the headline loss per share of 61.54 cents reported for the previous financial year.

“The expected increase in the financial year 2026 loss per share vs financial year 2025 is due to the below-expectation turnover noted above impacting on the group’s previous guidance of the financial year 2026 trading loss being broadly in line with financial year 2025,” it said. HEPS shows how much loss comes from its core business, helping investors understand how badly the company is really performing without once-off items. According to thefinanical results for the 53 weeksended 2 March 2025 (financial year 2025), the group reported it suffered a loss of R408 million.

If the retailer expects the loss to increase by more than 20% for the 48 weeks ended 1 February 2026, the group is looking at a loss of more than R489 million. These losses come during a period when CEO Sean Summers returned to Pick n Pay, tasked with implementing a turnaround strategy to restore the retailer to its former gloryafter a period of insolvency. In thetrading statement, Pick n Pay said group turnover for the past 22 weeks reflects financial pressure on consumers.

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For the period, the group’s turnover increased by 1.3%, including a 1.7% like-for-like increase. When it comes to Pick n Pay South Africa, the retailer said its 1.4% turnover decline for the period is due to the planned closure or conversion of underperforming stores. The retailer’s online business saw turnover growth of 31.8%, as a result of the continued growth of Pick n Pay asap!

and Pick n Pay groceries on the Mr D app. Pick n Pay Clothing also expected some challenges, with turnover growth being 4.9%. “The clothing market was exceptionally challenging over the last few months of the period, which resulted in a year-on-year decline in turnover and like-for-like sales for the last 22 weeks,” said the retailer.

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