Pick n Pay withdrew its restructuring consultation under Section 189A of South African labour law on Thursday, October 22, after reaching an agreement with SACCAWU, its main labour partner.
The retailer did not disclose the concessions agreed with the union or the number of employees covered. The process launched in May addressed store labour arrangements, including schedules, benefits and allowances, as part of the group’s turnaround plan.
Pick n Pay also expects its headline loss per share to narrow by 25% to 35% for the 26 weeks ended August 30. The loss is forecast at between 38.85 cents and 44.83 cents, compared with 59.77 cents a year earlier.
Its loss per share is expected at between 33.77 cents and 40.52 cents, an improvement of 40% to 50%. The group attributed the change to trading profit growth at discount chain Boxer and a moderately smaller trading loss in the core Pick n Pay business.
The figures have not been reviewed by external auditors. Pick n Pay is due to publish its full interim results on Monday, October 26, when it also plans to provide further information on the labour agreement.