Pick n Pay is still losing money. Here’s what that means for your grocery bill
· The South African
Pick n Pay’s results show its turnaround is making progress, but the retailer is still losing money.
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Its headline loss has narrowed by almost a third.
Its biggest rival, meanwhile, keeps growing.
So what does it mean for the millions of South Africans who do their weekly shop there?
WHAT PICK N PAY’S RESULTS SHOW
Pick n Pay released its interim results for the 26 weeks ended 30 August 2026 on Monday, 26 October.
The group’s headline loss narrowed by 31.9% to R299 million, down from R439 million a year earlier.
Group turnover rose by 2.4% to R60.5 billion, driven largely by its discount chain, Boxer, which grew by 6.3%.
But the core Pick n Pay business is still struggling.
It recorded a trading loss of R516 million, although that’s an improvement on the R621 million loss a year earlier.
The group won’t pay an interim dividend.
SIGNS OF PROGRESS
There are some positives.
Pick n Pay’s company-owned South African supermarkets recorded like-for-like sales growth of 2.4%.
The group’s gross margin also improved by 0.7 percentage points, to 18.8%.
The group ended the half-year with R10 billion in net cash, boosted by the sale of part of its stake in Boxer in May.
On Thursday, 22 October, Pick n Pay also withdrew a restructuring process it announced in May, after reaching an agreement with the South African Commercial, Catering and Allied Workers Union (Saccawu).
The retailer is aiming to break even by 2029, under incoming CEO Spencer Sonn.
A MARKET DOMINATED BY ONE GIANT
Pick n Pay’s struggles come as its biggest competitor, Shoprite, continues to grow.
According to retail research firm Trade Intelligence, Shoprite has extended a seven-year run of market share gains, and its stores are within 5km of 85% of South African households.
Shoprite’s market value is now greater than that of Pick n Pay, Boxer, Woolworths and Spar combined.
Analysts say Shoprite and Boxer have gained market share from Pick n Pay and Spar, which have faced both market pressure and internal challenges.
WHAT IT MEANS FOR YOUR WALLET
For shoppers, healthy competition matters, since it helps keep prices in check.
For now, the market remains competitive. Boxer is expanding fast with low prices, while Spar, Woolworths, smaller chains and independent stores all compete for customers.
The Competition Commission has also stepped in before.
In 2019, its Grocery Retail Market Inquiry found that long-term exclusive lease agreements in shopping centres, which stop competitors from opening nearby, were anti-competitive and harmful to consumers and smaller retailers. Pick n Pay has until 31 December 2026 to phase out its own exclusive leases.
If Pick n Pay recovers, shoppers benefit from stronger competition.
If it keeps shrinking, more of the market could end up in fewer hands.
HOW TO KEEP YOUR GROCERY BILL DOWN
- Compare prices across stores, since specials differ every week.
- Try house brands, which are often cheaper than big-name brands.
- Use loyalty programmes to collect discounts and rewards.
- Shop with a list, and stick to it.
WHERE DO YOU DO MOST OF YOUR GROCERY SHOPPING, AND WHY?
Let us know in the comments below…