Pick n Pay reaches union deal as projected losses narrow

Pick n Pay has reached an agreement with its primary labour union, SACCAWU, ending a formal consultation process aimed at restructuring the retailer's store-based workforce. The company withdrew the Section 189A consultation process, citing the difficulty it caused for affected employees and expressing gratitude to union representatives for their constructive engagement.

Further details on the agreement will be provided alongside Pick n Pay's interim financial results, set to be released on Monday, October 26. The announcement comes alongside a trading statement that anticipates a narrower loss for the 26 weeks ended August 30, 2026, compared to the same period last year. The company expects its headline loss per share to improve by between 25% and 35%, from 59.77 cents to between 38.85 cents and 44.83 cents.

This improvement is attributed to stronger trading profit at Boxer, a discount retailer, and a moderate reduction in the trading loss of Pick n Pay's supermarket business. However, the retailer cautioned that the improvement partly reflects the relatively small headline loss of R439 million recorded in the first half of the previous financial year; these figures remain forecasts and have not been reviewed by external auditors.

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