Retailer Pick n Pay has concluded the formal consultation process regarding the restructuring of its store personnel, reaching an agreement with the main union SACCAWU.
On Thursday, the company announced the withdrawal of the Section 189A consultation process, which was initiated in accordance with the Labour Relations Act, following the agreement reached with the South African Commercial, Catering and Allied Workers Union (SACCAWU).
Pick n Pay acknowledged that this process was difficult for the affected employees and thanked the union representatives for their constructive participation.
More detailed information on the agreements reached will be presented along with the interim financial results on Monday, October 26.
Loss Reduction
This announcement coincided with a trading statement forecasting a smaller loss over the 26 weeks ending August 30, 2026, compared to the same period last year.
Pick n Pay expects its earnings per share (EPS) net loss to improve by 25%–35%, decreasing from 59.77 cents in the first half of the previous fiscal year to a range of 38.85 cents to 44.83 cents.
The EPS loss is projected to decrease by 40%–50%, falling from 67.53 cents to a range of 33.77 cents to 40.52 cents.
The expected improvement in net EPS reflects stronger trading profits at the Boxer discount retailer, as well as a moderate reduction in trading losses recorded by the Pick n Pay supermarket business.
However, the retailer cautioned that the percentage improvement in net EPS is partly due to the relatively small net loss of 439 million rand recorded in the first half of the previous fiscal year.
These figures remain forecasts and have not yet been verified by the group's external auditors.
Pick n Pay's interim results are scheduled for release on Monday, when the company is also expected to provide further details on the labour agreement.