By: Edward West- IOL Business

Pick n Pay’s 2025 financial year represented the first leg in what will be a multi-year turnaround to sustainable, long-term profitability, CEO Sean Summers said in the annual report.

The Pick n Pay trading loss had been reduced by two thirds, against the group’s target of a 50% reduction, and it was debt free. The supermarket estate was leaner, stronger, more targeted and better positioned for profitability.

“This progress is only the beginning, it is meaningful and has laid the essential groundwork for the next phase of recovery,” he said.

Priorities for the 2026 financial year were to raise execution standards across the store network, accelerate investment in the estate, enhance the offer, and embed operational efficiencies that drive performance and simplicity, he said.

He said that in 2025, the successful execution of a two-step Recapitalisation Plan had restored the balance sheet to a net cash position. “This was a significant achievement, delivered at pace. To execute a full debt restructure, a rights offer and a major listing in a single financial year is extraordinary by any standard, and was a fundamental enabler of our turnaround,” Summers said.

Over the past year, regional structures were reinstated to improve local decision-making and accountability. Investment in employee training was increased, particularly in customer service excellence, leadership accountability was strengthened, and key cultural programs were relaunched to restore capability, morale and pride across teams.

The Pick n Pay supermarket business had returned to positive like-for-like growth. Sales in company-owned stores improved 3.6% in the second half of the 2025 financial year and this momentum had continued to strengthen into the 2026 financial year, he said.

Improvements in product availability, pricing, promotion and execution were driving progress, reflected in both sales and customer count recovery – “a signal that our core offer is regaining relevance,” said Summers.

And while much of the early progress had been most visible in the company-owned estate, franchise partners were now also seeing improved results as operational support provided to them strengthened.

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