Pick ‘n Pay insists it’s not seeking mass retrenchments but says the move is critical to keep the 57‑year‑old retailer alive in the face of rising costs and a brutal trading environment.

It reported its financial results for the 52 weeks ended March 1st, 2026, with losses improving to R185 million in the 2026 financial year from R3 billion the year before.

CEO Shaun Summers has warned that Pick ‘n Pay will likely take longer to break even.

Earlier this month, Pick ‘n Pay announced that it had started a Section 189A consultation process that would affect certain store-based employees.

In response, the South African Commercial Catering and Allied Workers Union have accused the retailer of sacrificing 22 000 employees rather than restructuring the pay of the retailer’s executives.

At its results presentation on Monday, Summers told investors that the section 189, triggering consultation, is not automatic retrenchment. He says the intention is not to cut headcount but to ensure the company survives.

“We’ve been having discussions with our labour leadership and shop steward infrastructure in the company, since my return. In fact, I think it’s actually the force of the 5th of December 2023, when I went to my first plenary session and I called out already at that stage that this was an issue that we were going to have to deal with. So, we’ve been discussing this for the last two and half years and we ultimately found ourselves in a situation where we were making little or no progress in this regard,” says Summers.

Like many retailers, Pick ‘n Pay anticipates an increase in inflation towards the end of the year. The group expects the war in the Middle East to impact food inflation, logistical costs, and the ability of the consumer to spend.