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Key Points
- Pick n Pay's stock dropped 9.28% on the JSE, lowering its market capitalization to below $1.2 billion and denting investor confidence.
- The Ackerman family’s stake in Pick n Pay fell by R370.29 million ($19.84 million) in 13 days, now valued at R3.62 billion ($193.95 million).
- Rising costs and changing consumer behavior are pressuring South Africa's retail sector, challenging Pick n Pay’s growth and its founding family's wealth.
The Ackerman family, founders of South Africa’s second-largest grocery chain, Pick n Pay, is facing a significant financial setback as the retailer’s shares take a sharp hit on the Johannesburg Stock Exchange (JSE).
The family, which owns a 16.71 percent stake in Pick n Pay, has seen the value of its holdings drop by R370.29 million ($19.84 million) in just 13 days. Their stake, previously valued at R4 billion ($213.8 million), now stands at R3.62 billion ($193.95 million).
This decline comes after a strong performance earlier in 2024, during which the Ackermans enjoyed gains of $50.63 million as the family’s stake grew from R2.9 billion ($160.95 million) at the start of the year to R3.81 billion ($211.58 million) by year-end.
Pick n Pay struggles with 9.28% stock decline
Founded in 1967, Pick n Pay operates over 2,000 stores across eight African countries, making it a key player in the continent’s retail sector. Despite its size and prominence as South Africa’s second-largest grocer, trailing only Shoprite Holdings (partly owned by billionaire Christo Wiese), the company has faced mounting challenges in recent weeks.
Its share price has fallen by 9.28 percent, slipping from R32 ($1.71) to R29.03 ($1.56). This sharp decline has pushed the company’s market capitalization below $1.2 billion, sparking concerns about its growth prospects and dampening investor confidence.
Pressure hits Ackerman family holdings
The drop in Pick n Pay’s share price has taken a toll on the Ackerman family’s wealth, reducing the value of their stake by nearly R370.29 million ($19.84 million) in less than two weeks.
While their financial position remains solid, the setback highlights the challenges South Africa’s retail sector is grappling with, including rising operational costs and shifting consumer spending patterns.
As the company navigates these headwinds, it remains to be seen how Pick n Pay—and its founding family—will adapt to sustain their position in an increasingly competitive market.
