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Pick n Pay says its overall sales increased in the 2026 financial year, but its main supermarket business continued to shrink as store closures weighed on performance.The group on Monday reported a 3.4% rise in total turnover to R120.3bn for the year to end-March, driven by strong 12.3% growth from Boxer, while Pick n Pay supermarkets saw sales decline by 1.6% after the company closed underperforming stores as part of its reset plan.Even with the decline, company-owned Pick n Pay supermarkets showed some improvement, with like-for-like sales growth of 3.9%, up from 3.3% the year before. The group also reported growth in its online business, where sales increased by 32.7% over the period.Pick n Pay CEO Sean Summers said the turnaround plan is making progress. “While Pick n Pay’s FY26 trading loss increased, the business today is fundamentally stronger than it was two-and-a-half years ago as a result of the action we have taken and the investments we have made,” he said.The group’s trading profit fell 4.2% to R1.7bn. This was due to a higher loss in the Pick n Pay supermarket division, which widened to R1bn, even as Boxer increased its trading profit to R2.6bn.Headline loss per share narrowed to 52.58c from 61.54c a year ago.Summers said fixing costs remains key to recovery. “Our objective is clear: to align our cost structure with industry standards while safeguarding jobs wherever possible.”The company recently started a formal consultation process to address high store labour costs. This forms part of its plan to improve competitiveness and return the supermarket business to break-even.Summers said the company has made changes to management costs and is focusing on store operations. “Without this recalibration, we cannot solve the group’s cost base or return the business to profitability in a thin margin industry.”According to Pick n Pay, the store reset programme is largely complete, and it has seen improvements in store standards, product availability and customer growth.Business Day
