Pick n Pay announced that Spencer Sonn will join the company on February 1, 2027 as CEO-designate, working closely with CEO Sean Summers.
The grocery retail group, which is in the throes of a longer-than-expected financial turnaround, said on Tuesday that Sonn is a highly experienced leader with deep operational retail experience, strong fresh-food and grocery credentials, and impressive international experience.
An integral part of Summers’ role was identifying a successor in good time before his contract expires in May 2028. This will give Sonn time to settle into executive leadership and work with Summers on the company’s turnaround.
The group said Sonn is a “seasoned and respected retail leader” who had a 26-year career at Woolworths South Africa, including five years as MD of the Food Division - Woolworth's Food Division has been a strong performer in terms of winning market share against its competitors.
“Spencer brings to Pick n Pay a wealth of retail knowledge, as well as a proven track record of leadership in challenging conditions in New Zealand. His experience abroad is particularly valuable, given the similarities to Pick n Pay’s operations, as it encompassed both franchise and corporate stores and 22,000 employees,” Pick n Pay's board said.
Summers said in a statement that throughout their engagements, Spencer had expressed "admiration for the values and founding principles on which Pick n Pay was built."
Sonn said: “This is an exciting challenge for me after working across every part of grocery retailing. I am looking forward to working closely with Sean. Pick n Pay is a strong and much-loved brand with enormous potential, as well as motivated and loyal people. I am looking forward to playing my part, continuing the turnaround,” he said.
Anchor Capital investment analyst Stephan Erasmus said the appointment alone was unlikely to move the share price materially. Getting the Pick n Pay stores to break even would probably move the price up, but the target date for the group to reach financial break even had been moved twice.
“Spencer Sonn’s Woolworths Food background speaks directly to fresh produce, where Sean Summers admits Pick n Pay handed business to its rivals. That said, in my view, the crux of the matter is labour costs, and no new CEO moves the dial until that is settled. A further challenge will be winning back market share from some pretty established competitors. Until the labour issue is settled, I’d stay on the sidelines,” he said.
Pick n Pay’s share price gained 1.66% to R19.60 on the JSE on Tuesday afternoon. It had steadily fallen over a five-year period from as much as R62.97.
edward.west@nationalmg.co.za
THE NATIONAL