London-based M&G Investment raises holding in Pick n Pay to $117.3 million

Key Points

• M&G Investment Managers raised its stake in Pick n Pay from 0.43% to 10.16%, now holding over $115 million in shares.
• Pick n Pay closed 32 stores and secured R4 billion ($213 million) in funding to stabilize finances and return to profitability.
• Pick n Pay faces rising competition from Shoprite’s Checkers FreshX and Woolworths Food as it fights to regain market strength.

M&G Investment Managers, the London-based subsidiary of M&G Plc Group, has increased its stake in Pick n Pay, the South African retailer partly owned by the Ackerman family. The latest move brings M&G’s total holdings in the company above $115 million, underscoring its confidence in Pick n Pay’s turnaround strategy.

According to a regulatory filing on Mar. 25, 2025, M&G raised its stake from 0.43 percent as of Sept. 30, 2024, to 10.16 percent. This translates to an increase from roughly 3.23 million shares to 75.79 million shares, marking a major vote of confidence in the retailer’s efforts to stabilize its business and return to profitability.

Pick n Pay’s restructuring plan gains support

Once a dominant force in South African retail, Pick n Pay has struggled with financial losses, reporting a R3.2 billion ($171 million) after-tax loss in 2024. In response, the company has launched an aggressive restructuring plan, which includes closing underperforming stores and streamlining operations. M&G’s investment reinforces these efforts, signaling strong institutional backing for the retailer’s recovery.

As part of its “Store Estate Reset” initiative, Pick n Pay has shut down 32 locations—24 company-owned stores and eight franchises—while converting five more into franchises. The company also exited its flagship Hyde Park Corner store in September 2024, making way for Shoprite Group’s Checkers FreshX, a premium grocery concept.

To strengthen its financial position, Pick n Pay secured R4 billion ($213 million) through an oversubscribed rights issue in August 2024. M&G’s expanded stake provides additional stability, helping the company execute its turnaround strategy more effectively.

Competition heats up in South Africa’s grocery sector

Pick n Pay operates more than 2,000 stores across eight African countries, with the Ackerman family remaining a key shareholder, holding a 16.71 percent stake (124.68 million shares). Despite its challenges, the retailer remains South Africa’s second-largest grocery chain, competing closely with industry leader Shoprite.

The country’s grocery sector is becoming more competitive, especially with Shoprite’s Checkers FreshX expansion targeting high-end consumers. Woolworths Food is also strengthening its position in the premium segment. M&G’s increased investment in Pick n Pay signals confidence in the retailer’s ability to adapt, compete, and drive long-term growth despite market pressures.