Pick n Pay has launched its first hypermarket in Pietermaritzburg as part of its turnaround strategy, converting its Liberty Midlands Mall supermarket into a full-scale store offering everything from fresh produce and groceries to appliances and outdoor goods.
CEO Sean Summers said the company’s reset programme aims to convert underperforming stores, partner with landlords to right-size locations, and invest in targeted refurbishments.
“We’re moving away from scale for its own sake, focusing instead on a smaller, more profitable, higher-quality store base. At the same time, we’re enhancing our customer offer with a sharper product mix, improved services, and stronger customer engagement,” he said.
The relaunch comes against a tough retail backdrop. According to Nedbank Corporate & Investment Banking’s fast-moving consumer goods outlook, the retail recovery will remain muted this year, with GDP growth forecast at just 1.1% despite lower interest rates and an easing power crisis.
Consumer spending is being propped up by social grants, which support nearly half of households and account for 17% of retail sales.
Nedbank’s analysis shows Pick n Pay facing some of the sector’s steepest earnings pressure, with negative earnings revisions of more than 50% over the past year. The bank has a neutral rating on the retailer, forecasting a return to profitability only from 2026.
While traditional retailers battle weak momentum, the fast-growing discount segment is emerging as the standout story. Nedbank said Boxer and Pepkor are key winners, with discount grocery penetration still at only 6% at home compared with far higher levels globally, pointing to headroom for growth.
Pick n Pay’s hypermarket strategy is a bid to capture that demand, offering bulk value and one-stop convenience to a squeezed middle market. The company said the Liberty Mall outlet will be followed by revamps in Klerksdorp, Ottery and Longbeach in the coming months, part of the retailer’s effort to shrink unprofitable space while reinvesting in formats designed to capture future demand.
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