Cape Town – Pick n Pay has closed 284 stores across South Africa and its other markets since September 2023, as the struggling retailer continues to restructure its operations in an effort to restore profitability.
According to BusinessTech, the closures form part of a turnaround strategy introduced by group CEO Sean Summers after his return to the company in September 2023.
The strategy focuses on reducing the retailer’s exposure to underperforming stores and building a smaller but more profitable business.
In its latest interim results, covering the 26 weeks ended 30 August 2026, Pick n Pay reported that it had closed another 20 stores, comprising 15 company-owned outlets and five franchise stores.
The closures follow 53 stores shut in 2024, a further 103 in the subsequent financial year and 108 in the 2026 financial year.
Of the 284 stores closed over the period, 118 were Pick n Pay supermarkets and hypermarkets.
“Moving forward, the Group’s focus for Pick n Pay will not be ‘scale-at-all-cost’. We will focus on being a smaller but more profitable business in the short term, with fewer but better stores,” Summers said.
The restructuring has also involved converting some underperforming Pick n Pay outlets into Boxer stores, allowing the group to retain viable locations while expanding its discount retail business.
Losses narrow as turnaround gains momentum
The closures come as Pick n Pay begins to report improvements in its financial performance, although the business remains under pressure.
In its October 2026 financial results coverage, Business Day reported that the group narrowed its headline loss to R299 million for the six months ended August 2026, compared with R439 million in the corresponding period a year earlier.
Its trading loss also improved by 16.9% to R516 million from R621 million.
Group trading profit increased by 58.1% to R490 million, supported by improved performance from Boxer.
However, Pick n Pay’s core supermarket business continues to face profitability challenges, with the retailer targeting a return to sustainable profitability in its 2029 financial year.
The company is also reviewing the size of its existing stores to reduce operating costs.
According to The Citizen, Summers said many of the retailer’s outlets were still too large for their current needs.
“There are a lot of stores that are still too big and not fit for purpose,” he said.
The retailer plans to reduce store space as leases come up for renewal, potentially lowering rental and operating costs.
Meanwhile, Reuters reported that Pick n Pay had withdrawn a previously announced restructuring consultation process after reaching an agreement with its labour union.
The agreement forms part of efforts to introduce a more flexible and cost-effective labour model.
Despite the progress, Pick n Pay still faces the challenge of rebuilding its core supermarket business in an increasingly competitive retail environment.
The group is banking on its restructuring programme, improved store performance and cost reductions to put the business on a sustainable path to profitability.
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Compiled by Betha Madhomu
