By:  Marzanne Janse van Rensburg - MSN

After 57 years, the Ackerman family is stepping away from leading the big South African retailer Pick n Pay. This is a major change for Pick n Pay.

Retailer’s recent struggles

As reported by Business Tech, Pick n Pay has recently faced significant financial challenges. The company reported a loss of R3.2 billion for the financial year ending on 29 February 2024 (FY24). Despite profits at Boxer and Pick n Pay Clothing, the group’s core grocery business triggered a R2.8 billion non-cash impairment on the assets of Pick n Pay company-owned stores.

The retailer implemented a two-step capital raise plan as a result, which was a huge success.

Ackerman voting rights no longer majority

The Ackerman family reduced their percentage of voting rights by 3%, from 52% to 49%. This is in support of the business plan and transformation in an attempt to recover financially.

As a result, the family no longer has complete control over the direction of the company as it had in the past – a major change for Pick n Pay.

Raymond Ackerman resigned as chairman of Pick n Pay in 2010. Thereafter, his family maintained control over the retail group until now.

His son, Gareth, succeeded Raymond as chairman. However, due to the retailer’s poor financial results, Gareth Ackerman will also step down as chairman.

How did Pick n Pay begin?

The late Raymond Ackerman, founder of Pick n Pay, was the son of the Ackermans clothing group founder, Gus Ackerman. After a competitor company, Greatermans, bought Ackermans, Raymond worked for them.

However, the Greatermans Group later fired him. Following this, he was motivated to branch out on his own. 

Using two weeks’ severance pay, a bank loan, a modest inheritance, and shares purchased by his friends, Ackerman bought four small stores in Cape Town trading under the name Pick n Pay. He bought these for R620 000 in 1967 from Jack Goldin, according to Business Day.

Markedly, this was one of the earliest private equity deals in South Africa and had 50 investors in the unlisted Pick n Pay. The company was listed on the JSE in September 1968.