Pick n Pay, backed by Ackerman family, opens new store after closing 32 locations

Key Points

• The retailer, backed by the Ackerman family, opens a new store at Westown Square, enhancing convenience and freshness.
• The ‘Super Seven’ store upgrades boost sales by up to 100%, enhancing customer experience with improved layouts and curated product selections.
• Despite strategic moves, Pick n Pay posted a R3.2 billion loss ($171 million) in 2024, navigating intense competition and rising costs.

Pick ‘n Pay, the South African retailer backed by the Ackerman family, has opened a new supermarket at Westown Square, a mixed-use development in Shongweni, KwaZulu-Natal. This comes barely two months after the company closed 32 stores as part of its restructuring plan. A Pick n Pay Clothing and Liquor store is also set to open in the shopping centre.

Pick n Pay reshapes store network strategy

“We’ve implemented several improvements in the Westown store that we are rolling out as part of our targeted store revitalisation programme,” said Sean Summers, CEO of Pick n Pay. “These features are designed to enhance freshness, improve our fresh produce sections, and optimize convenience for customers.” 

Summers emphasized that the company has made significant strides in reshaping its store network. “The bulk of the estate reorganization is behind us, and we are now accelerating store revitalization and opening strategically located new stores in high-potential areas.” 

The move comes amid intense competition in South Africa’s retail sector. Pick n Pay recently ceded its Hyde Park location to Shoprite’s Checkers FreshX, marking a strategic reshuffle in Johannesburg’s premium retail market. This shift underscores the broader battle for dominance between Pick n Pay and market leader Shoprite.

‘Super Seven’ initiative drives store upgrades

Pick n Pay’s restructuring includes the ‘Super Seven’ initiative, which has transformed seven stores with better layouts, a more focused product selection, and improved staff training. The changes are paying off, with some stores doubling their sales and receiving positive customer feedback.

At the same time, the retailer is strengthening key partnerships to speed up its recovery. It recently became the main grocery partner for FNB’s eBucks programme and signed a top-tier sponsorship deal with SA Rugby, boosting its brand visibility.

Financial challenges and market outlook

Despite these strategic moves, Pick n Pay continues to face significant financial hurdles. With over 2,000 stores across eight African countries, the company posted an after-tax loss of R3.2 billion ($171 million) in 2024. The loss reflects the ongoing challenges of rising operational costs and escalating market competition. 

The Ackerman family, which retains a 16.71 percent stake (124.68 million shares) in Pick n Pay, has been focused on restoring investor confidence. Recent actions, such as M&G Investment Managers increasing its stake from 0.43 percent to 10.16 percent, with a current holding worth over $115 million, suggest a stabilizing outlook for the retailer. 

As the company continues its restructuring, the focus remains on improving efficiency, enhancing the customer experience, and strategically expanding its store footprint to reclaim its position as South Africa’s second-largest grocery chain, competing closely with Shoprite.