Pick n Pay Closes First Hypermarket in South Africa

December 11, 2024
FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

VANDERBIJLPARK, South Africa – Pick n Pay has closed its Vaal Hypermarket in Vanderbijlpark, marking the first hypermarket closure in the company’s history. The store, located in the Bedworth Centre on Barrage Road (R42), ceased operations in November 2023.

The closure predates CEO Sean Summers’ recently announced store transformation strategy and stems from changing demographics in the surrounding areas over recent decades, according to retail industry sources.

“The overall market the store serves is very different now from when the hyper was opened,” said a company spokesperson. The decision to close the 14,000-square-meter store was made before Summers’ return to the retailer.

Vukile Property Fund, the center’s landlord, has already secured new anchor tenants. In an unusual arrangement, both Boxer Superstore and Shoprite have opened outlets side by side in the former hypermarket space.

The dual occupancy breaks from typical mall design principles, where anchor stores are usually positioned at opposite ends. However, the substantial size of the vacant space left by Pick n Pay’s exit necessitated this unconventional arrangement.

Industry analysts note this closure aligns with Summers’ stated approach to address underperforming stores. The timing suggests the Vaal location’s performance issues preceded the current management’s review of store operations.

The new Boxer and Shoprite stores will compete directly for local shoppers, despite their slightly different market positioning. Both retailers now serve as the primary anchor tenants for the Bedworth Centre.

This development comes as Pick n Pay undergoes broader strategic changes to revitalize its core business. While independent of current restructuring efforts, the closure highlights ongoing shifts in South Africa’s competitive retail environment.