In a move that will give the family less oversight of Pick n Pay, Gareth Ackerman resigned as chairman on Tuesday.
Pick n Pay is entering a new era. For the first time since it was founded in 1967, the retailer will operate without an Ackerman family member in control.
The retailer was founded by Raymond Ackerman and his wife after buying four stores in Cape Town. He served as CEO till 1999 and stepped down as chairman in 2010, making way for his son, Gareth, to take over.
Despite Pick n Pay being listed on the Johannesburg Stock Exchange (JSE), the Ackerman family held majority control of the retailer. Today, Pick n Pay has more than 2 500 stores nationwide.
Ackerman family steps back
The Ackerman family reduced their percentage of voting rights from 52% to 49% in 2024, marking the end of the family’s control of the retailer. Although the family owns a significant stake in Pick n Pay, they no longer have the right to nominate the chairman, CEO, and CFO.
In a move that will give the family less oversight of the retailer, Gareth resigned as chairman on Tuesday. He delivered his last address at the annual general meeting (AGM), where he reflected on his journey at the company’s helm.
“When I stepped into the chair role 15 years ago, I knew it would be a privilege, but I didn’t realise how deeply I’d come to value the people, purpose, and potential of this business,” he said.
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Ackerman’s guiding principles
Raymond died in 2023 at the age of 92. Gareth said he used the two guiding principles that his father left him with to navigate his time as the chairman.
“My late father, my predecessor as Chair, often shared two guiding principles that shaped both his leadership and his life. More than just aphorisms, he lived them to the fullest.
“The first was, ‘Leaders deal in hope’. It was a belief he shared with former President Nelson Mandela, with whom he had many warm and thoughtful engagements over the years.
“The second was, ‘Leaders take people from where they are to where the leader believes they can go.’ These were not abstract ideas to him; they were practical tools, applied daily.”
Beginning of the trouble
Pick n Pay reported a R3.2 billion loss in the 2024 financial year due to the retailer’s attempt to restructure the company. The strategy included shifting the retailer into the premium market to compete with Woolworths and launching a new “QualiSave” brand to compete in the middle market.
After the unsuccessful implementation, Sean Summers was recalled as the retailer’s CEO to reform Pick n Pay back to its former glory.
Summers’ first tenure as CEO started from 1999 to 2007. He was brought back in late 2023 and formulated the strategy that is today making Pick n Pay profitable.
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Thanks to Summers
Gareth and Summers led the acquisition of Boxer supermarket in 2002, and today the retailer is viewed as Pick n Pay’s pride and joy due to its success. In 2003, Gareth led the establishment of Pick n Pay Clothing.
Summers was brought back to implement the strategy that included a two-step recapitalisation plan, which included a R4 billion rights offer and the IPO of Boxer, one of the group’s best performers, which raised over R8 billion for the group.
In his last address as chairman, Gareth expressed his gratitude to Summers for his role in what Pick n Pay is today.
“Today, the energy in the business is vibrant. Over the past 2 years, we have regained our momentum. We’re focused on execution. And thanks to the extraordinary leadership of Sean Summers and his team, we are seeing real progress.
“Sean brings a deep understanding of Pick n Pay and an unwavering commitment to its renewed success. His clarity, speed, and belief in what’s possible are key to getting us back on track.”
More to be done
Gareth believes there is still more to be done, “but the plan is sound, and the belief in the goal is back.”
Gareth will be succeeded by James Formby, chairman of Boxer Retail, and lead independent director of Pick n Pay.
“With Sean and James at the helm, I have every faith in the future of this business,” said Gareth.
“The values instilled in the business by Raymond and Wendy Ackerman were a key reason for me joining the board in 2022, and the concepts of ‘consumer sovereignty, doing good is good business and business efficiency’ are still relevant today,” said Formby.
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