JOHANNESBURG – Retail giants are not immune to collapse, according to Pick n Pay Group Chief Executive Sean Summers, who has warned that even market-leading businesses can quickly lose their dominance if they fail to adapt to changing economic conditions.
Speaking on the challenges facing the retail sector, Summers said history has repeatedly shown that size and market power offer no guarantee of survival. He pointed to the decline of once-dominant South African retailers such as Stuttafords and Edgars as examples of companies that lost their competitive edge despite their strong market positions.
“No retailer is too big to fail,” Summers said, emphasising the increasingly disruptive nature of modern retail markets.
Summers also cited Zimbabwe’s largest supermarket chain, OK Zimbabwe, as a cautionary example of how rapidly fortunes can change in the retail industry.
“OK was a 10-tonne gorilla when Pick n Pay entered Zimbabwe in 2010,” he said. “Now, OK is going to be gone.”
The comments come as Zimbabwe’s formal retail sector faces mounting pressure from a combination of economic challenges, including the expansion of informal trade, complex regulatory requirements, currency instability and shifting consumer spending patterns.
Pick n Pay owns a 49 percent stake in TM Pick n Pay, one of Zimbabwe’s largest supermarket operators. Since 2024, however, the South African retail group has excluded the Zimbabwean operation from its consolidated financial results, reflecting the unique operating environment in the country.
Financial disclosures indicate that had TM Pick n Pay been consolidated into Pick n Pay’s results for the year ended March 2026, the group’s share of losses would have amounted to approximately US$2.3 million. While still loss-making, this represented an improvement from the US$3.1 million loss recorded in the previous financial year.
“No retailer is too big to fail.”
Pick n Pay SA CEO Sean Summers, who has the task to turnaround the troubled retail group, warns that even major retailers can fail. He points to once dominant retailers like Stuttafords and Edgars in South Africa as proof that size offers no… pic.twitter.com/nkr3h1BwgY
— newZWire (@newswireZW) May 30, 2026
Despite the difficult trading environment, TM Pick n Pay continues to maintain a significant footprint in Zimbabwe, operating 73 stores nationwide.
Industry analysts note that formal retailers in Zimbabwe have increasingly struggled to compete with informal traders, many of whom operate with lower compliance costs and greater pricing flexibility. The growth of the informal sector has altered traditional retail dynamics, forcing established supermarket chains to rethink their business models and supply chain strategies.
The challenges confronting Zimbabwe’s retailers mirror broader restructuring efforts underway within the regional retail industry. In South Africa, Pick n Pay itself has embarked on an extensive turnaround programme under Summers’ leadership, closing 56 underperforming stores over the past year as part of efforts to restore profitability and strengthen the group’s balance sheet.
Retail analysts say the experiences of both Pick n Pay and OK Zimbabwe underscore a fundamental lesson for the sector: market leadership is not permanent. In an environment characterised by changing consumer behaviour, economic volatility and intense competition, retailers must continually innovate, improve efficiency and adapt to evolving market realities.
As Zimbabwe’s retail landscape continues to evolve, the future of traditional supermarket chains will likely depend on their ability to compete with informal traders, manage currency-related risks and respond to the purchasing power constraints facing consumers across the economy.
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