Why are South Africa’s retail legends, the Ackerman family, stepping back from pick n Pay?
South Africa’s retail landscape has entered a new chapter as the founding Ackerman family of Pick n Pay has significantly reduced its stake in the supermarket chain, marking the end of an era for one of the nation’s most iconic retail families. On Tuesday, the company announced that the family would sell approximately 64 million shares in an accelerated bookbuild, further reducing their influence over the retailer they helped build.
This latest move comes more than a year after the Ackermans signalled their intention to cede control of Pick n Pay, a decision aimed at supporting a major corporate restructuring designed to restore profitability, reduce debt, and regain market share. Gareth Ackerman, who has been with the company for 40 years and served as chairman for 14, also announced his retirement, paving the way for new leadership.
The shares, sold at R25.50 each, represent 8.5% of Pick n Pay’s total issued ordinary shares, raising roughly R1.6 billion. This sale will reduce the family’s voting interest from 49% to about 36.8%, though they remain the largest shareholder and a key long-term investor committed to supporting the retailer’s ongoing turnaround.
Founded by Raymond Ackerman in 1967, Pick n Pay has faced significant challenges in recent years. The retailer reported a R3.2 billion loss for the 2024 financial year, following the disappointing rollout of the Ekuseni strategy. This ambitious plan sought to restructure the company into separate business silos, elevate the Pick n Pay brand into the premium market to compete with Woolworths, and introduce the “QualiSave” brand targeting the middle-market segment.
Despite the strategic vision, the execution faltered, prompting the company to reverse course under the leadership of returning CEO Sean Summers. The turnaround included a two-step recapitalisation: a R4 billion rights offer and the IPO of Boxer, one of Pick n Pay’s best-performing divisions, which raised over R8 billion. These measures helped stabilise the company and reduced the Ackermans’ voting rights below majority control, while still retaining a substantial stake.
Following the latest share sale, the Ackerman family will hold 135.4 million ordinary shares. Gareth Ackerman reflected on the transition: “As a family, we’ve always seen ourselves not just as shareholders, but as stewards of something bigger—a business with purpose, people at its heart, and a deep belief in doing good while doing well. That belief has not changed. We remain committed to supporting Pick n Pay as it continues to evolve.”
The leadership baton is now passing to James Formby, former CEO of RMB and long-time executive at FirstRand, who will take over as chairman. Formby, already serving as the chairman of Boxer, will collaborate closely with CEO Sean Summers, whose contract has been extended until 2028.
Recent interim results show that Pick n Pay is gradually regaining its footing. For the 26 weeks through August 2025, the group’s turnover rose by 4.9% to R58.8 billion, and trading profit jumped 273.5% to R310 million, largely driven by Boxer’s strong performance. The core Pick n Pay brand, however, continues to face challenges, recording a turnover of R36.3 billion and a trading loss of R621 million, though this represents a 13.5% improvement compared with earlier results.
While the Ackermans are stepping back from majority control, they remain invested in Pick n Pay’s long-term success, serving as anchor shareholders while the retailer navigates its path to profitability. This historic shift signals both a changing of the guard in South Africa’s retail sector and the enduring legacy of one of the country’s most influential business families.
FAQs
Q: How many shares did the Ackerman family sell in Pick n Pay?
A: Approximately 64 million shares were sold in an accelerated bookbuild.
Q: What percentage of Pick n Pay does the Ackerman family still control?
A: Their voting interest now stands at about 36.8%, down from 49%.
Q: Who is the new chairman of Pick n Pay?
A: James Formby, former CEO of RMB and chairman of Boxer, will serve as chairman.
Q: Will the Ackerman family remain involved in Pick n Pay?
A: Yes, they remain anchor shareholders and long-term investors in the company.
Q: What were the main challenges that led to the family reducing their stake?
A: Pick n Pay faced a R3.2 billion loss in 2024, partly due to the unsuccessful Ekuseni strategy and rising operational costs.
Q: How has Pick n Pay performed recently?
A: The group’s turnover rose 4.9% to R58.8 billion, with trading profit up 273.5%, largely due to Boxer’s strong performance.
