Pick n Pay has reported mixed results for its 2025 financial year, with overall sales growth driven primarily by its discount retail arm, Boxer. However, excluding Boxer’s strong performance, Pick n Pay’s core supermarket business faced challenges, including a net closure of 32 stores.
In a trading update for the 45 weeks ended 5 January 2025, released on Tuesday, 4 February, Pick n Pay announced a 3.6% increase in total sales, with like-for-like sales rising by 3.3%. However, this growth was largely attributed to Boxer’s impressive performance, following its spin-off in November 2024.
Boxer reported an 11.4% increase in sales and a 6.7% rise on a like-for-like basis, showcasing its resilience in the highly competitive discount retail sector.
Boxer, now independently listed, also shared its first trading update, highlighting a 6.1% internal food inflation rate for the period—up from 5.3% in the first half of its 2025 financial year. The company clarified that its reported inflation is based on the year-on-year change in average unit prices and does not account for mix change impacts influenced by promotional activity.
When normalised for mix change effects, Boxer’s adjusted inflation stood at 0.0% for the period, compared to 0.5% in the first half of 2025. The retailer noted that this method provides a more accurate reflection of the real inflation rate experienced by its customers. Additionally, Boxer confirmed that its gross profit margin year-to-date remains in line with expectations.
Without Boxer’s contribution, Pick n Pay’s supermarket segment struggled, reporting a 0.4% decline in total sales and a modest 1.6% increase on a like-for-like basis. Despite this, the retailer considered the slight improvement in like-for-like sales a positive sign, as it marked progress compared to the 0.4% decline reported in the second half of its 2024 financial year.
The company stated that it remains focused on improving its supermarket performance by enhancing retail strategies and collaborating with franchise partners to drive sales.
Pick n Pay acknowledged that its Store Estate Reset plan played a role in the weaker sales figures, with total sales lagging behind like-for-like sales due to planned store closures and conversions. During the 45-week period, Pick n Pay South Africa closed a net 32 supermarkets—24 company-owned and 8 franchise stores—and converted 5 company-owned supermarkets into franchises.
Despite challenges in its core supermarket business, Pick n Pay’s clothing segment showed strong performance, with sales momentum improving by 10.3% in the latter 19 weeks of the period. Online sales also surged by 42.5%, driven by continued growth in Pick n Pay asap! and Pick n Pay Groceries on the Mr D app.
Additionally, Pick n Pay South Africa’s internal selling price inflation for the period was 2.4%, down from 3.4% in the first half of its 2025 financial year, reflecting a more stable pricing environment.
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