Pick n Pay has issued a stark warning to investors, revealing that its headline loss per share for the 2026 financial year is expected to widen by more than 20% compared to the previous year. The announcement sent the retailer’s share price into a tailspin, dropping 9% in early Johannesburg trading.
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The group pointed to a “highly constrained” trading environment during the critical Black Friday window as the primary driver for a significant second-half slowdown.
While group turnover grew by 3.2% for the 48 weeks ended 1 February 2026, the topline figure masks a sharp deceleration in momentum. After a relatively stable first half (4.9% growth), group turnover rose only 1.3% over the final 22 weeks of the period.
- Black Friday Slump: A weak November performance dragged down the entire second half. Like-for-like sales in South African supermarkets actually declined during November before recovering slightly in December and January.
- Clothing Hit: The disappointment was most visible in the clothing division. Pick n Pay Clothing standalone stores swung from 7.5% growth in the first half to a 6.8% decline in the final 22 weeks.
- The Boxer Outlier: In contrast to the core brand, the Boxer subsidiary remained a powerhouse, posting turnover growth of 11.9%.
Online sales provided a rare silver lining, surging 31.8%. This growth was fueled by the Pick n Pay asap! service and the brand’s integration with the Mr D app. However, the online surge was insufficient to offset the deeper losses in physical retail.
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Consequently, the retailer now expects its headline loss per share to worsen by more than 12.31c from the prior year’s 61.54c loss. This revised outlook is a notable retreat from previous guidance, which suggested the trading loss would remain “broadly in line” with 2025.
Despite acknowledging the results as a “disappointment,” management insists the broader restructuring plan is on track. The process of closing or converting underperforming company-owned supermarkets is now reportedly largely complete.
Full-year results are expected in late May 2026.
