Pick n Pay has reported strong growth in its online, on-demand grocery delivery platform, which continues to thrive despite challenges in the broader group’s turnaround efforts.
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For the first half of the 2025 financial year, ending 25 August 2024, the group’s Pick n Pay business saw trading losses increase by 9.1% to R718.9 million due to a reduced gross profit margin. However, the company’s clothing and online segments showed solid performance, with promising improvements in its company-owned supermarkets.
Group turnover rose by 3.7% to R56.1 billion, with a trading profit increase of 159% to R81.5 million. However, headline earnings per share fell by 16.3%, resulting in a loss of 136.6 cents. The group’s half-year loss reflects continued struggles within its core supermarket segment, coupled with higher borrowing costs. Pick n Pay reported a pre-tax loss of R1.1 billion, up from R837.2 million the previous year.
CEO Sean Summers remains optimistic, targeting a 50% reduction in trading losses in Pick n Pay’s core business by year-end. The group’s discount chain, Boxer, delivered positive results, with a trading profit rise of 16% to R801.4 million, fueled by a 12% sales increase. Pick n Pay also announced plans to list Boxer separately on the JSE to unlock shareholder value.
Online sales have been a significant driver of growth, increasing 60.6% year-over-year, largely due to the on-demand Pick n Pay asap! platform, which, alongside Mr D’s Pick n Pay Groceries, operates from 550 Pick n Pay stores. The asap! app was relaunched in October 2023 with enhanced functionality, including AI-driven search, alternatives, and personalization features. Improvements in logistics, order fulfilment, and customer experience have also boosted customer satisfaction by 24%.
Pick n Pay aims to close the gap with market leader Shoprite Holdings, whose Checkers Sixty60 app has maintained a stronghold in the competitive on-demand grocery delivery sector.
