Casparus Treurnicht, research analyst and portfolio manager at Gryphon Asset Management, said he had expected stronger improvement in Pick n Pay’s trading margins and more visible progress in stores at this stage of the turnaround.
Pick n Pay says its turnaround strategy remains on course, but CEO Sean Summers has warned the recovery process could take longer than initially expected.
According to Business Report, the retailer, South Africa’s second-largest grocery chain, launched its recovery plan in late 2023 to restore profitability, simplify operations and revive its core supermarket business.
Speaking on Monday, Summers said management had initially hoped the turnaround would take about three years, but acknowledged the process may now extend beyond that timeframe despite steady progress.
Pick n Pay reduced its operating loss by 5.4% to R386 million for the 52 weeks ended March 1.
