Retail group Pick n Pay has secured R4.7 billion from the sale of shares in discount chain Boxer as part of efforts to strengthen its ongoing recovery strategy.

The company announced on Monday, 18 May, that it planned to launch a bookbuild process involving Boxer shares valued at R4.7 billion. By Tuesday, 19 May, Pick n Pay confirmed that approximately 57.3 million Boxer ordinary shares had been sold, accounting for about 12.5% of Boxer’s issued ordinary share capital.

Following the transaction, Pick n Pay’s shareholding in Boxer decreased from more than 65% to roughly 53.1%, allowing it to maintain majority control of the business.

The retailer said funds generated from the sale would be directed toward supporting its turnaround programme.

Over the past two years, Pick n Pay has been working to revive its core supermarket business after an extended period of weak performance, increasing competition, and the fallout from an unsuccessful retail strategy.

The situation worsened in 2024 when the company was deemed technically insolvent, prompting leadership to accelerate restructuring efforts.

Key elements of the recovery plan included bringing back former chief executive Sean Summers, moving leadership away from the Ackerman family, and reducing exposure to underperforming stores.

Pick n Pay said meaningful progress had already been achieved across several parts of the strategy and that the Boxer transaction would provide additional momentum.

According to the retailer, product ranges have been improved, store operations strengthened, and the quality of its supermarket footprint enhanced.

The company also noted that a revised logistics partnership is expected to improve operational efficiencies in the years ahead.

These measures have contributed to stronger like-for-like sales growth in company-owned Pick n Pay supermarkets, alongside better gross margins, with management expecting additional gains in future.

The group said it remains focused on improving cash generation within the Pick n Pay division and restoring profitability.

Net proceeds from the Boxer share sale will be used to continue funding the turnaround and growth initiatives while preserving financial flexibility over the medium term.

Pick n Pay added that the capital injection would support ongoing investment plans and help move the core supermarket business toward cashflow break-even.

Despite reducing its holding, the retailer emphasised that Boxer remains central to the broader group and that it intends to retain a controlling interest in the discount chain.

Boxer’s valuation outpaces parent company

A notable development is the widening valuation gap between Boxer and its parent company.

Boxer has emerged as one of South Africa’s most valuable listed retailers, with a market capitalisation of roughly R40.5 billion, significantly exceeding Pick n Pay’s valuation of around R16.6 billion.

Much of Pick n Pay’s market value is now linked to its stake in Boxer.

Based on market capitalisation, Boxer is also valued above several other major South African retail groups, including SPAR at R12 billion, TFG at R19 billion, and Dis-Chem at R31.6 billion. It is approaching the valuation of Woolworths, which stands at approximately R41.6 billion.

Shoprite remains the country’s largest retailer by market value at R172.8 billion, while Pepkor is valued at R81.5 billion.

Meanwhile, Boxer continues to expand aggressively across South Africa as it grows its discount retail footprint.

In financial results for the year ended 1 March, Boxer reported that it opened 51 net new stores during 2026, taking its total store count to 576 nationwide.

The expansion included 18 superstores, 31 liquor outlets and two new build stores. Liquor outlets as a proportion of superstores increased from 55% to 61%.

According to Boxer’s results, newly opened stores contributed 7.8% to overall turnover growth, excluding like-for-like sales performance.

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