The retailer said it expects its headline loss per share to be more than 20% higher than last year’s.
Pick n Pay told shareholders it expects a larger financial loss than the one reported in the 2025 financial year due to a weak performance during the festive season, especially in November.
The retailer on Tuesday said it expects the headline loss per share (HEPS) for financial year 2026 to increase by more than 20% when compared with the headline loss per share of 61.54 cents reported for the previous financial year.
“The expected increase in the financial year 2026 loss per share vs financial year 2025 is due to the below-expectation turnover noted above impacting on the group’s previous guidance of the financial year 2026 trading loss being broadly in line with financial year 2025,” it said.
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Pick n Pay set to lose more than R400m
HEPS shows how much loss comes from its core business, helping investors understand how badly the company is really performing without once-off items.
According to the finanical results for the 53 weeks ended 2 March 2025 (financial year 2025), the group reported it suffered a loss of R408 million. If the retailer expects the loss to increase by more than 20% for the 48 weeks ended 1 February 2026, the group is looking at a loss of more than R489 million.
These losses come during a period when CEO Sean Summers returned to Pick n Pay, tasked with implementing a turnaround strategy to restore the retailer to its former glory after a period of insolvency.
How Pick n Pay lost almost R490 million
In the trading statement, Pick n Pay said group turnover for the past 22 weeks reflects financial pressure on consumers.
For the period, the group’s turnover increased by 1.3%, including a 1.7% like-for-like increase. When it comes to Pick n Pay South Africa, the retailer said its 1.4% turnover decline for the period is due to the planned closure or conversion of underperforming stores.
The retailer’s online business saw turnover growth of 31.8%, as a result of the continued growth of Pick n Pay asap! and Pick n Pay groceries on the Mr D app.
Pick n Pay Clothing also expected some challenges, with turnover growth being 4.9%. “The clothing market was exceptionally challenging over the last few months of the period, which resulted in a year-on-year decline in turnover and like-for-like sales for the last 22 weeks,” said the retailer.
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Is trouble brewing at Boxer?
Boxer, the retailer’s saving grace, outshone Pick n Pay SA. The discount business turnover grew by 11.9%, and 3.9% on a like-for-like basis.
Boxer was bought by Pick n Pay group in 2002 and later listed separately on the Johannesburg Stock Exchange (JSE). This was done to help Pick n Pay raise enough money to solve its financial woes.
Just last week Boxer reported strong sales in September and October. However, November was weaker than expected as people were under strain during the extended Black Friday period.
The discount retailer said trading conditions improved gradually in December and January, but not enough to make up for November’s performance.
Disappointed
The retailer has described the financial year 2026 loss as a disappointment, but notes that there have been some operational improvements.
“While the expected FY26 loss is a disappointment, the group notes the substantial on-the-ground operational improvements that have been achieved to date and that the Pick n Pay segment’s trading profit recovery will not be linear,” it said.
“Despite the macro challenges, the group continues to deliver on the strategic initiatives designed to return the Pick n Pay segment to profitability.”
The group’s financial results for the period will be published on 25 May 2026.
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