Pick n Pay has withdrawn the restructuring consultation process it announced in May after reaching an agreement with the South African Commercial, Catering and Allied Workers Union (Saccawu), the retailer said on Thursday 22 October.
The company also expects its headline loss per share for the 26 weeks to 30 August to be between 38.85c and 44.83c, an improvement of 25% to 35% on the 59.77c loss a year earlier.
What Pick n Pay said
The retailer said the agreement with Saccawu ended the consultation process it began in May. In the coverage we reviewed, the terms of the deal were not published.
The company attributed the expected improvement in headline loss per share to higher trading profit at its discount chain Boxer and a smaller trading loss in the core Pick n Pay business.
When the consultation began, the union said the restructuring put about 22,000 jobs at risk, according to coverage at the time. The company's latest statement, as reported, does not say how many jobs are affected.
The turnaround and the leadership change
Pick n Pay is running a multiyear turnaround plan focused on improving its product offering, closing underperforming stores and cutting costs. Woolworths executive Spencer Sonn was appointed chief executive in September and succeeds Sean Summers on 1 February.
What we do not yet know
- The terms of the agreement, including what it means for the jobs and stores that were in scope.
- How many jobs were ultimately affected. The 22,000 figure reflects the union's position in May and has not been repeated in the company's latest statement.
- When the full interim results will be released. The loss figures are the company's guidance, not final results.
Figures and statements in this report come from published coverage, not from the original company announcement.
