Retail giant Pick n Pay is taking a new route to solve its financial problem.
The retailer will close its underperforming stores and convert some stores to the Boxer brand, Moneyweb reveals.
MW reports that ‘more than 100 stores will be converted or closed.’
With this move, Pick n Pay aims to prioritize “profitable, meaningful stores” that cater directly to the needs of their local communities. This strategic shift comes amidst a period of financial strain for the company, marked by a net loss and mounting debt.
The company owns 300 supermarkets across South Africa.
The news also comes following the announcement that the founding Ackerman family has announced they will relinquish their majority voting control in Pick ‘n Pay. Gareth Ackerman, son of founder Raymond Ackerman, will step down as chairperson next year after 14 years. Despite disappointing full-year results showing an 87% trading loss for the year ending February 25, 2024, investors are focusing on the retailer’s turnaround plans.
CEO Sean Summers aims to return the business to profitability through strategic closures and conversions of loss-making stores, emphasising renewed customer focus and improved store execution. The Ackermans will reduce their control to under 50% and invest R1 billion as part of a R4 billion capital raise.
source: moneyweb
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