Boxer Retail is off to a solid start after its JSE listing, reporting 11.4% sales growth. But how does Pick n Pay fare in its recovery? Find out more from Terri-Ann Brouwers.
Summary:
- Boxer Retail posted strong results, with a notable 11.4% increase in sales and 6.7% growth in like-for-like sales, meeting expectations since its JSE listing in November 2024.
- Expansion plans are on track, with Boxer focused on opening more stores in FY2025, although delays in liquor store rollouts are expected due to pending license approvals.
- Pick n Pay is seeing recovery, with a 3.6% increase in overall sales, driven by steady growth in their supermarket division, particularly a 4.1% boost in the last 19 weeks.
The discount retailer remains a key driver of growth for Pick n Pay Group, and continues to perform in line with expectations.
Boxer said it is on track with its FY2025 store expansion, including Pick n Pay conversions, although the rollout of new liquor stores has faced delays due to pending licence approvals.
The Durban-headquartered group’s performance aligns with the guidance provided during its November JSE listing, where it forecast FY2025 sales growth of 10%–12% and like-for-like growth of 5.5%–7.7%.
Modest PnP growth
Meanwhile, the broader Pick n Pay Group reported 3.6% total sales growth for the period and 3.3% like-for-like sales, with a 3.5% increase in the latter 19 weeks as the turnaround of its core supermarkets division gained traction.
Pick n Pay SA’s like-for-like sales grew by just 1.9%, improving to 3% in the last 19 weeks. However, total sales lagged due to the group’s Store Estate Reset plan, which saw 32 net supermarket closures, including five company-owned stores converted to franchise operations.
However, clothing sales in standalone stores jumped 10% (1.7% like-for-like sales), while online sales surged 42.5%, driven by continued growth in Pick n Pay asap! and the Mr D partnership.
A key turnaround indicator for Pick n Pay is like-for-like sales growth in SA supermarkets, which showed steady improvement:
- H2 FY2024: -0.4%
- H1 FY2025: 1.3%
- Last 19 weeks: 2.8%
Pick n Pay said it is pleased with Boxer’s continued strong performance and remains focused on sustaining its growth trajectory. As it looks ahead to FY2026, Boxer is working tirelessly to execute its store expansion plans while also enhancing retail disciplines and collaborating with franchisees to drive Pick n Pay Supermarkets’ sales momentum.
Both Boxer and Pick n Pay’s shares firmed on the trading update.
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