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The Group’s strategy is focused on unlocking and growing shareholder value by:

  • Returning the Pick n Pay segment to profitability via execution of a turnaround strategy in Pick n Pay supermarkets
  • Continuing to accelerate the key growth drivers of Boxer, Pick n Pay Clothing and Online (the latter two businesses reported within the Pick n Pay segment)
  • Listing the Boxer business to ensure Boxer is accorded a market value which appropriately reflects its superior growth and Return on Invested Capital (ROIC)
  • De-gearing the Group via the two-step Recapitalisation Plan, which will substantially reduce Group debt service costs, reduce risk, and provide management with the operational flexibility and resources to drive the Pick n Pay segment’s return to profitability

The primary objective of the Pick n Pay strategy is a return to operational excellence and long-term business sustainability. The overall success of the Group is highly dependent on the performance of its core Pick n Pay supermarkets business (groceries, liquor and general merchandise). As such, the Group’s strategy is keenly focused on returning Pick n Pay to profitability over the medium term, while continuing to drive the exceptional growth of its Clothing and Boxer businesses.

CEO’s reflections: restoring and revitalising Pick n Pay

Our turnaround is built around six key priorities designed to revitalise our Pick n Pay core retail business and restore its profitability:

We introduced a simplified leadership structure, bolstered with the return of seasoned executives who bring a wealth of experience and a deep understanding of both the retail industry and Pick n Pay.

The new leadership team is focused on local decision-making, enhanced accountability and strong succession planning. Each operating region now has dedicated buying and store management teams to better meet the specific needs of its local customers.

We are taking a hard look at our store portfolio to create a more sustainable and profitable estate. This involves converting some stores to Boxer, securing experienced franchisees for others, and closing those stores that are no longer viable.

This strategic reconfiguration will help us optimise our footprint and better serve our customers.

We are refocusing on products and services that matter most to our customers. This includes restructuring our commercial teams, enhancing our fresh produce and private label offerings, and ensuring competitive pricing and promotions.

Strengthening our store management and employee training will also improve the overall shopping experience.

Efficiency is key to improved profitability. We are simplifying processes, reducing waste, and driving productivity across the Group.

This will result in a more efficient head office, a streamlined store estate, and a robust supply chain.

Our success hinges on strong relationships with our key stakeholders, including franchise partners, suppliers and employees. We are committed to strengthening these relationships through regular engagement, training and collaboration.

Our goal is to create a capable, engaged and empowered team that can drive our Group forward.

A solid capital raising plan supports our transformation. The Rights Offer and the planned listing of Boxer will provide the necessary funds to invest in our business, rebuild our profitability and settle our debt.

The recapitalisation is crucial to implement a sustainable capital structure and for long-term financial stability.

Please find more detailed information on our Group Strategy 1.4MB

Integrating ESG into our long-term strategy

Working with a long-term view, sustainability has taught us much over the decades. We have learnt that, while philanthropic giving remains critical in the face of dire need, positive ESG impact achieves greater traction and scale when integrated within long-term strategy. Much of our integration work has focused on innovating to deliver positive ESG impact while also reducing costs, increasing revenues or improving the operating efficiency. We are also clear that effective intervention in ESG challenges requires full systems view and long-term, committed partnerships. Though clearly not unique, these insights continue to inform our sustainability strategy and approach to ESG.

Read more in our 2024 Sustainability Report 8MB