On Monday, 4 May 2026, Pick n Pay launched a Section 189A consultation process with the South African Commercial, Catering and Allied Workers Union, marking a new step in its ongoing turnaround strategy.

The process applies specifically to store-level employees within the non-management bargaining unit, and does not include management or support office staff.

Discussions will centre on improving labour flexibility and reviewing the overall cost of employment for certain in-store roles. This includes looking at guaranteed working hours, as well as selected benefits and allowances—particularly those considered above prevailing market levels. The company emphasised that hourly wage rates themselves are not expected to be reduced.

According to the retailer, the goal is not to cut jobs but to introduce a staffing model that better balances competitiveness with fair employment practices. The intention is to enable stores to align staffing more closely with customer shopping habits and service demands.

Pick n Pay said the consultation process is aimed at enhancing operational efficiency and ensuring the business can adapt in a fast-evolving retail landscape.

Chief executive Sean Summers noted that certain elements of the company’s current labour structure no longer reflect market realities or consumer behaviour. These include rigid scheduling, minimum guaranteed hours, and certain benefits that exceed industry norms.

He explained that the proposed changes are designed to bring the retailer in line with competitors, particularly as shopping patterns shift toward later hours and increased weekend activity, requiring more flexible staffing approaches.

Part of a broader recovery plan

Summers said the move forms a key part of Pick n Pay’s turnaround plan, which has been underway for the past two years.

He outlined that the company has followed a phased strategy aimed at stabilising operations and building a foundation for long-term competitiveness. This has included significant structural and financial adjustments, such as changes to the group’s holding structure and the listing of Boxer to help reduce debt.

In addition, the retailer has reviewed its store footprint, restructured its support office operations, and implemented a salary freeze for head office employees.

At the same time, efforts have been made to drive sales growth through stronger promotional activity, improved marketing, and enhancements to the in-store shopping experience.

Summers acknowledged that the current store labour model has been misaligned with market conditions for some time, becoming increasingly complex and limiting the company’s ability to respond effectively to customer needs and retail trends.

He stressed that addressing these challenges is essential for restoring profitability and safeguarding the business against future pressures.

“Our aim is to position Pick n Pay for renewed growth, enabling us to expand our store network and continue creating employment opportunities,” he said. “To do that, we need to remain competitive, financially sustainable, and responsive to how our customers choose to shop.”

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