PnP's franchise horror

Since February, the retailer has shut four corporate stores and 12 franchise ones.

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IMPLEMENTATION MID-2025: WORK ON A NEW BUSINESS MODEL IS UNDERWAY

Pick n Pay has revealed the extent of the struggles in its franchise supermarket business, with sales down by 0.8% in the 21 weeks ending 21 July. It described this performance as "disappointing".

However, it needs to be seen in the context of internal selling price inflation of 4.7%, which means volumes through its franchise supermarkets were down by 5.5% versus last year over the March to July period.

The struggles across its franchisee base compare with sales growth of 3.6% across its company-owned supermarkets (and hypermarkets), excluding standalone clothing outlets.

It said "improved retail disciplines" has meant a strong turnaround from -0.5% in the second half of its previous financial year to the 3.6% level for the bulk of the first half of FY25.

It added: "The return of Pick n Pay Hypermarkets to positive sales growth after a sustained period of underperformance is particularly noteworthy."

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