Pick n Pay drops restructuring plan as interim loss narrows

Pick n Pay has withdrawn a restructuring consultation process it announced in May and expects its first-half headline loss to narrow by as much as 35%.

The retailer said on Thursday it had reached an agreement with its primary labour partner, the South African Commercial, Catering and Allied Workers Union (Saccawu), ending the process.

It expects a headline loss per share of 38.85c-44.83c for the 26 weeks to August 30, an improvement of 25%-35% on the 59.77c loss a year earlier.

The narrower loss was driven by higher trading profit at its discount chain Boxer and a smaller trading loss in its core Pick n Pay segment.

The grocer is pursuing a multiyear turnaround plan focused on improving its product offering, closing underperforming stores and cutting costs.

Last month, it appointed Woolworths executive Spencer Sonn as its next CEO. He will succeed Sean Summers on February 1.