Pick n Pay and its units grew turnover 2.7% in the first five months of its financial year as market conditions remained constrained, though the group noted steady growth in online sales and a recovery in its clothing division.On a like-for-like basis, growth was 2.5% in the 20 weeks ended July 19, the group said in an update on Thursday.Pick n Pay like-for-like sales grew 2.6%, with turnover flat year-on-year, it said. Pick n Pay South Africa like-for-like sales grew 1.9%, with a 0.4% decline in turnover a result of the recent completion of the planned closure or conversion of underperforming company-owned supermarkets. Boxer Retail’s turnover grew 7.2%, and 2.2% on a like-for-like basis. Last month the retailer said it remains firmly on track to deliver its ambitious store expansion strategy, with its pipeline for new stores at its strongest level despite a tougher consumer environment and slowing sales growth.Boxer CEO Marek Masojada said the discount retailer, which was spun off from struggling Pick n Pay in 2024, remained committed to the medium-term rollout plan outlined when it listed on the JSE, with expansion opportunities still available across South Africa.His comments came soon after Boxer released a trading update showing turnover for the 20 weeks ended July 19 grew 7.2%, slowing from the 10.9% growth reported in the second half of its 2026 financial year. Boxer opened 19 new stores during the first 20 weeks, comprising six superstores and 13 liquor stores. Pick n Pay continued to grow online sales, with online turnover growth for the period at 37.5%, driven by continued growth of Pick n Payasap! and Pick n Pay groceries on the Mr D app.Clothing turnover growth in standalone stores was 3.3%, but down 1.3% on a like-for-like basis. Clothing like-for-like sales showed improved momentum after the disappointing 5.6% like-for-like decline reported for the second half of the previous financial year.In its South Africa supermarkets unit, company-owned supermarkets, which represent most of PnP South Africa turnover, showed like-for-like growth of 3.3%, with implied like-for-like volume growth of 2.0%. Like-for-like growth in franchise supermarkets for the period was 1.3%. Both company-owned supermarkets and franchise supermarkets reported improved like-for-like momentum compared with the second half of last year. “Market conditions remain highly constrained, with soft economic growth, elevated fuel prices and continued subdued food price inflation all impacting turnover growth. In these circumstances, the group is pleased Boxer continues to gain market share,” it said.Within the Pick n Pay segment, PnP Clothing is regaining its momentum, and PnP SA Supermarkets is showing an improved like-for-like performance, it added.“Despite this improvement, much remains to be done. The Pick n Pay segment requires the achievement of the full range of its turnaround initiatives, including the successful conclusion of the S189A process, to meet the previously announced break-even profit objective within the targeted timeframe.”In May, the group advised it had initiated a consultation process in terms of S189A of the Labour Relations Act with its primary labour union, the South African Commercial Catering and Allied Workers Union (Saccawu), and other affected parties. The consultation process is continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA). Saccawu has made an application to the Labour Court and has referred a dispute to the CCMA. Pick n Pay maintains the proposed changes to terms and conditions, as alternatives to retrenchment, form part of the group’s ongoing turnaround strategy. The changes are aimed at ensuring store-based labour practices, organisational structures and terms and conditions of employment remain sustainable, competitive and aligned with the requirements of the retail market, it said.The consultation process has not yet concluded, and no final outcomes have been determined. Business Day