PICK n Pay Stores Limited chief executive Sean Summers says the group’s Zimbabwe operations are not immune to worsening trading conditions, as pressure intensifies across the country’s formal retail sector.
His comments come after struggling rival OK Zimbabwe Limited froze salaries and wages under corporate rescue proceedings initiated in February. Management said the move was necessary to stabilise operations, preserve cash flows and restore profitability.
The developments highlight growing strain in Zimbabwe’s retail sector, which is being squeezed by weak consumer spending, liquidity shortages, and rising operating costs, including frequent power cuts that increase reliance on generators.
In its latest financial results for the 52 weeks ended March 1, 2026, Pick n Pay reported the closure of three stores in Zimbabwe, leaving 73 outlets operating in the country through its 49% stake in TM Supermarkets, its joint venture with Meikles Limited.
“In Zimbabwe, where we have our beautiful Pick n Pay, Gareth (former Pick n Pay chairperson Gareth Ackerman) and I were there right from the beginning when we made that acquisition of TM in Zimbabwe,” Summers said during a presentation to investors of the financial results for the year ended March 1, 2026.
“You know, if we think back then, OK was a ‘10 tonne gorilla’ in Zimbabwe... And you will see that last week in Harare, they had to suspend all payroll in OK. All payroll and wages are suspended with immediate effect, and OK is sadly going to disappear.
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“So, we mustn’t think that there is immunity to all this. The important thing for me is not what happens while I am here, but what happens after I am gone.”
UK-based realtor Knight Frank recently said Zimbabwe’s retail sector momentum is faltering following OK’s collapse.
Over the past three years, formal retailers have battled exchange-rate volatility, declining consumer spending, intensifying competition from the informal sector, and rising operating costs, including utility costs and generator expenses linked to power cuts.
For Pick n Pay, this is reflected in the closure of three stores.
“The group has a 49% investment in TM Supermarkets (Pvt) Limited (TM Supermarkets), a private company incorporated in Zimbabwe, which operates supermarkets throughout Zimbabwe,” Pick n Pay said.
The group accounts for the investment under the equity method in accordance with IAS 28 (Investments in Associates and Joint Ventures).
It also noted that, under IAS 29 (Financial Reporting in Hyperinflationary Economies), Zimbabwe is treated as a hyperinflationary economy, and TM Supermarkets’ results are reported accordingly.
The investment was fully impaired to nil in the 2024 financial year. The unrecognised share of losses for the current period stands at ZAR37 million (2025: ZAR51 million).
Although Pick n Pay still holds a 49% stake in TM Supermarkets, the investment has been written down to zero, meaning its share of ongoing losses is no longer recognised in full in its accounts.
Had the investment retained value, the losses would have amounted to US$2,26 million (ZAR37 million) for the period, down from US$2,28 million (ZAR51 million) previously.
This underscores continued pressure on the group’s Zimbabwe retail operations.