Pick n Pay CEO Pieter Boone has resigned from the top role, effective 30 September, the retail giant announced on Monday.
Sean Summers, a Pick n Pay veteran who ran the group as MD and CEO for 11 years, will replace Pieter with immediate effect.
“I want to thank Pieter for his dedication to Pick n Pay over the past two-and-a-half years. He became our CEO while the Covid pandemic was still raging, and has led the business through some extraordinary challenges, including the transition out of the Covid lockdown, the unprecedented civil unrest in 2021, and the current loadshedding crisis,” said Chairman Gareth Ackerman.
“Despite this, he devised and led the launch of our Ekuseni strategic plan, overseeing the very pleasing acceleration of our Boxer, Clothing and Omnichannel growth engines, and launching our new QualiSave brand.
“Unfortunately, in a very difficult environment, the performance of our core Pick n Pay business has been very challenging over the past months, and has not met expectations. Pieter accepts that the Board has decided on a change in leadership. He leaves us with our heartfelt thanks and best wishes for the future.”
Summers worked previously for the Group between 1974 and 2007, rising to become Managing Director in 1996, and CEO in 1999. He left the Group in 2007. He has a unique understanding of the business and South African grocery retailing. During his tenure, Pick n Pay was the clear grocery market leader in South Africa.
Over the coming weeks, Sean will relocate physically to South Africa, and will spend time analysing the business and meeting staff and customers.
Ackerman, said: ‘We are delighted that Sean is coming back to Pick n Pay. His knowledge and experience are unrivalled. He is passionate about getting Pick n Pay back on to the right trajectory, and winning the trust and confidence of customers new and old. He is absolutely the right person for the job at this time”.
Said Summers: “I am very excited to be coming home to Pick n Pay. Retailing is my passion, and this company is in my blood. I have great excitement and energy for the task ahead. I look forward to leading the Group back to the position it deserves.”
Trading update
The Group experienced a particularly challenging H1 FY24 (26-week period ended 27 August 2023), driven by a weak consumer environment, loadshedding costs, and heightened competitive intensity.
Continued strong sales momentum in the Ekuseni growth drivers of Boxer, Online and Clothing was offset by muted sales growth in Pick n Pay SA supermarkets, gross profit margin pressure, and load shedding cost pressures. While Boxer managed to withstand the combined impact of these pressures, the impact on Pick n Pay SA supermarkets was significant.
