PICK N PAY STORES LIMITED - Trading update for the 20 weeks ended 19 July 2026

Pick n Pay Stores Limited
Incorporated in the Republic of South Africa
Registration number: 1968/008034/06
JSE and A2X share code: PIK
ISIN: ZAE000005443
("Pick n Pay")

Trading update for the 20 weeks ended 19 July 2026


Turnover of the Company and its subsidiaries ("the Group") for the 20-week period to 19 July 2026
("the Period") grew 2.7% and 2.5% on a like-for-like basis.


Growth for the Period for the Group's key turnover segments was as follows:


-   Pick n Pay like-for-like sales grew 2.6%, with turnover flat year-on-year. Pick n Pay SA like-for-like
    sales grew 1.9%, with a 0.4% decline in turnover resulting from the recent completion of the
    planned closure or conversion of underperforming company-owned supermarkets. Pick n Pay SA
    company-owned supermarkets like-for-like sales growth was 3.3%.

-   Boxer Retail Limited Group ("Boxer") turnover grew 7.2%, and 2.2% on a like-for-like basis. Further
    detail on Boxer's performance can be found in its trading update released on the Stock Exchange
    News Service ("SENS") on 28 July 2026.


Online turnover growth for the Period was a robust 37.5%, driven by continued growth of Pick n Pay
asap! and Pick n Pay groceries on the Mr D app.


Clothing turnover growth in standalone stores (reported within the Pick n Pay segment) for the Period
was 3.3% (-1.3% like-for-like). Clothing like-for-like sales in the Period showed improved momentum
relative to the disappointing -5.6% like-for-like reported for H2 FY26.


Pick n Pay SA's internal selling price inflation for the Period, as measured on a volume-held-constant
basis, was 1.3%, showing a further moderation from the 1.9% reported for full-year FY26. Internal
food inflation was below CPI Food of 2.5%, reflecting Pick n Pay's continued drive to offer excellent
value to customers.


                                                            20 weeks ended 19 July 2026, % growth
                                                    Turnover                   Like-for-like
 Pick n Pay (SA & RoA*)                             0.0%                       2.6%
   Pick n Pay SA                                    -0.4%                      1.9%
 Boxer (SA & RoA*)                                  7.2%                       2.2%
 Group turnover                                     2.7%                       2.5%
  *Rest of Africa (operations outside South Africa)

Pick n Pay ("PnP") SA Supermarkets momentum


Like-for-like growth remains the Group's key target indicator within PnP SA Supermarkets. Company-
owned supermarkets, which represent the majority of PnP SA turnover, showed like-for-like growth
of 3.3% for the Period, with implied like-for-like volume growth of 2.0%. Like-for-like growth in
franchise supermarkets for the Period was 1.3%. Both company-owned supermarkets and franchise
supermarkets reported improved like-for-like momentum compared with H2 FY26.


 Like-for-Like sales growth                         26 weeks                  26 weeks            20 weeks ended
                                                     H1 FY26                   H2 FY26              19 July 2026
 PnP South Africa                                       4.4%                      1.3%                      1.9%
 PnP SA Supermarkets                                    3.7%                      1.9%                      2.6%
  PnP SA company-owned supermarkets                     4.8%                      3.0%                      3.3%
  PnP SA franchise supermarkets                         1.8%                     -0.2%                      1.3%
 PnP Clothing standalone stores                         7.5%                     -5.6%                     -1.3%
 Notes: 1) PnP SA Supermarkets includes Hypermarkets and excludes standalone clothing stores. 2) Franchise sales 
 refer to wholesale sales from PnP to franchisees


Market conditions remain highly constrained, with soft economic growth, elevated fuel prices and
continued subdued food price inflation all impacting turnover growth. In these circumstances, the
Group is pleased that Boxer continues to gain market share. Within the Pick n Pay segment, PnP
Clothing is regaining its momentum, and PnP SA Supermarkets is showing an improved like-for-like
performance relative to H2 FY26. Despite this improvement, much remains to be done. The Pick n Pay
segment requires the achievement of the full range of its turnaround initiatives, including the
successful conclusion of the S189A process addressed below, in order to meet the previously
announced break-even profit objective within the targeted timeframe.


Update on consultation process in terms of Section 189A of the Labour Relations Act


On 4 May 2026, Pick n Pay informed investors that it had initiated a consultation process in terms of
S189A of the Labour Relations Act with its primary labour union, SACCAWU, and other affected parties.
The consultation process remains ongoing under the auspices of the CCMA. As part of SACCAWU's
opposition to the S189A process, it has made an application to the Labour Court and has referred a
dispute to the CCMA. These matters are pending. Pick n Pay remains fully committed to engaging in
good faith and in accordance with all applicable legal requirements.


The proposed changes to terms and conditions (as alternatives to retrenchment) form part of the
Group's ongoing turnaround strategy and are aimed at ensuring that store-based labour practices,
organisational structures and terms and conditions of employment remain sustainable, competitive
and aligned with the requirements of the retail market.


The consultation process has not yet concluded, and no final outcomes have been determined. Pick n
Pay will provide further updates as the process progresses.

By order of the Board

Cape Town
6 August 2026


Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)


Forward-looking information contained in this announcement


This announcement contains certain forward-looking statements which may relate to Pick n Pay's
possible future actions, long-term strategy, performance, liquidity position and financial position. All
forward-looking statements are solely based on the views and considerations of the board and, in
particular, as at the date hereof. These statements involve risk and uncertainty as they relate to events
and depend on circumstance that may or may not occur in the future. Pick n Pay does not undertake
to update or revise any of these forward-looking statements publicly, whether to reflect new
information, future events or otherwise. These forward-looking statements have not been reviewed
or reported on by Pick n Pay's external auditors.

Date: 06-08-2026 07:10:00

Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.