Pick n Pay raises $282 million from Boxer stake sale to aid turnaround

Pick n Pay Stores Ltd., the South African grocery chain, has raised $282 million by selling part of its stake in discount retailer Boxer, giving the supermarket group more room to fund its recovery plan after one of the toughest periods in its history.

The sale, confirmed on Tuesday, involved about 57.3 million Boxer ordinary shares, equal to roughly 12.5 percent of the company’s issued shares.

Even after the deal, Pick n Pay will remain Boxer’s controlling shareholder with a stake of about 53.1 percent. 

The move comes as Pick n Pay continues efforts to steady its business after years of losing ground to rivals such as Shoprite Holdings and SPAR Group.

Rising competition, weak consumer spending and operational setbacks have weighed heavily on the retailer in recent years. 

The pressure peaked in 2024 when Pick n Pay faced severe financial strain and was forced to rethink key parts of its business.

The group responded by reshaping leadership, closing weaker stores and focusing on improving performance in its core supermarket operations.

Boxer sale gives Pick n Pay breathing room 

Under chief executive Sean Summers, who returned to lead the company through the restructuring, Pick n Pay has focused on improving store standards, sharpening product ranges and cutting costs across the business. 

The retailer said money raised from the Boxer sale will support those efforts and help strengthen its balance sheet.

The company also said trading conditions in company-owned supermarkets have started to improve, with better like-for-like sales and improved margins. 

Pick n Pay added that a new logistics agreement should help lower costs and improve supply chain efficiency over time.

The group said it remains focused on returning its core supermarket division to cashflow break-even.

Boxer continues to outshine its parent company 

While Pick n Pay works through its recovery, Boxer has continued to grow rapidly and attract strong investor interest.

The discount retailer is now valued at about $2.4 billion, well above Pick n Pay’s market value of roughly $993.5 million. 

Boxer has benefited from growing demand for lower-priced groceries as South African consumers face higher living costs and stubborn economic pressure.

The retailer has steadily expanded its footprint across the country, strengthening its position in the discount grocery market. 

In the financial year ended March 1, Boxer opened 51 net new stores, taking its total footprint to 576 outlets nationwide.

The expansion included new superstores and liquor outlets, helping lift sales growth and reinforce Boxer’s standing as one of South Africa’s fastest-growing food retailers.