Pick n Pay expects to post a significantly larger headline loss in its 2026 financial year, as pressure on its core supermarket operations and clothing business continues in a difficult retail environment.

The retailer said weaker trading in its main supermarket division over the 22 weeks to 1 February 2026 weighed on performance, citing a highly constrained consumer market. This was compounded by its ongoing plan to close or convert underperforming stores, which has reduced turnover in the short term.

Pick n Pay has been executing a turnaround strategy since Sean Summers returned as CEO in 2023, following several years of declining performance. The group has previously cautioned that the recovery would be gradual and uneven.

In a trading update released after market close on 9 February, covering the 48 weeks to 1 February 2026, the group reported turnover growth of 3.2%, or 3.4% on a like-for-like basis. Growth was driven mainly by Boxer, the discount retailer unbundled and separately listed in 2024, which recorded turnover growth of 11.9%.

By contrast, the Pick n Pay South Africa division saw total turnover decline by 1.4%, although like-for-like sales increased by 2.9%. Online sales were a bright spot, rising 31.8%, supported by Pick n Pay asap! and grocery sales through the Mr D platform.

The clothing business faced tougher conditions, with standalone store turnover up 4.9% but almost flat on a like-for-like basis. The group said trading deteriorated in the final months of the period, though it highlighted strong comparative growth in prior years.

Pick n Pay warned that headline loss per share for 2026 is expected to be more than 20% worse than in 2025, largely due to softer-than-expected turnover, particularly during the extended Black Friday period. Despite this, the retailer said operational improvements remain on track and that its strategy is aimed at restoring profitability over time. Full-year results are expected around 25 May 2026.

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