Behind closed doors, many of South Africa’s major consumer goods suppliers quietly agree on one point: the country’s retail landscape works best when Pick n Pay is healthy and competitive.

While you won’t hear it publicly, suppliers such as Tiger Brands, RCL Foods, Premier, Rhodes Food Group, AVI, and global giants like Coca-Cola, Unilever, PepsiCo (through Pioneer Foods), and Procter & Gamble are far more comfortable when both Pick n Pay and Shoprite Group are in strong form. The alternative—a single, overly dominant player—is not in their best interests.

An uneasy market with a weak pick n pay

The concern became evident when it was clear Pick n Pay was struggling under former CEO Pieter Boone’s leadership. His attempt to split the brand into two—traditional Pick n Pay stores and the more price-focused QualiSave banner—failed to gain traction.

A stronger Checkers (or, more broadly, a stronger Shoprite Group) without effective competition could squeeze suppliers harder, demanding lower prices to protect or even grow its already industry-leading profit margins. That’s a scenario manufacturers would rather avoid.

This explains why several suppliers have, behind the scenes, supported Pick n Pay’s recovery with better pricing and extended discount terms. For instance, the retailer has been able to run longer promotional campaigns—four-week deals instead of the usual two—likely made possible by these improved supplier arrangements.

The consumer wins when competition is strong

For shoppers, this competitive pressure translates into more aggressive deals and lower prices. When the two largest grocery players are actively vying for market share, customers see the benefits in their baskets.

Pick n Pay’s road to recovery

CEO Sean Summers is currently leading Pick n Pay through a complex, multi-year turnaround plan, anchored on six strategic pillars. The retailer now expects to break even on a trading profit basis in its 2028 financial year—pushed back from an earlier FY27 target.

Summers notes that the path forward requires a careful balancing act: boosting like-for-like sales while overhauling its operations and store footprint.

Out of 112 underperforming stores, 70 are earmarked for closure. Another 17 will be converted to franchise operations, while nine will transition to Boxer stores. Eighteen stores are expected to return to profitability.

Encouragingly, early signs suggest the plan is beginning to take hold. In the first half of the most recent financial year (March–August), Pick n Pay-owned stores saw a 3.1% rise in like-for-like sales. That figure improved to 3.6% in the second half (September–February). Franchise sales also improved, swinging from negative growth in H1 to a 1.1% gain in H2. Across its broader South African supermarket network, including Hypers, sales increased 1.3% in H1 and 2.7% in H2.

A broader stakeholder interest

The implications of Pick n Pay’s performance go beyond suppliers and consumers—property owners and mall operators also have skin in the game.

As exclusivity clauses in lease agreements begin to expire in 2026 (with some already removed), retailers are gaining the freedom to open stores in malls previously locked down by competitors. This shift has already benefited Woolworths Food, which has opened locations in centres formerly dominated by Spar, Checkers, or Pick n Pay.

Pick n Pay’s store rationalisation has opened up new opportunities, often seized by Checkers or Boxer. But with Checkers already expanding aggressively, finding non-overlapping, profitable locations is becoming more difficult. In some instances, Checkers has moved into spaces vacated by Pick n Pay, sometimes within a 1–2 km radius of existing stores—raising speculation that it may eventually consolidate older sites in favour of higher-spec new ones offering better lease terms.

The bottom line

South Africa’s retail ecosystem functions best when there is healthy rivalry between the country’s leading supermarket chains. A revitalised Pick n Pay not only strengthens competition—it helps keep pricing fair, gives suppliers more balanced bargaining power, and ensures a vibrant mix of retailers for property owners and consumers alike.

In short, everyone has a stake in seeing Pick n Pay succeed.

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