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Ackerman family resign control of Pick n Pay

Ackerman family resign control of Pick n Pay
Pick n Pay Group CEO Sean Summers. (Photo: Supplied)
Georgina Crouth
By Georgina Crouth
27 May 2024
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The Ackerman family say they are confident in the retailer’s future, despite a blue Monday for Pick n Pay as it published bleak results.

Synonymous with the Pick n Pay brand, the Ackerman family are relinquishing control of the retail giant almost 60 years after Raymond Ackerman established the retailer.

Pick n Pay has announced that Ackerman Investment Holdings (AIH) is giving up its majority shareholding in the struggling group and Gareth Ackerman, the chairperson of PnP, will be stepping down after 14 years in the position.

Ackerman assumed the chair vacated by his father, Raymond Ackerman, who died last year. 

Gareth Ackerman is also co-chair of the Consumer Goods Council of South Africa.

The Ackermans, who hold a controlling stake in the group, have made a firm written confirmation to follow their rights under the anticipated Pick n Pay Rights Offer, subject to reasonable satisfaction with its terms and conditions. The exact mechanism has not been finalised yet but their voting rights will fall below 50% after the rights offer.

PnP Ackerman Pick n Pay chairperson Gareth Ackerman. (Photo: Dwayne Senior / Bloomberg via Getty Images)



Pick n Pay is fighting for its survival. On Monday, 27 May, the retailer – which was once the market leader – posted a full-year loss after tax of R3.19-billion. A year ago, it posted a profit of almost R1.2-billion. 

It also abruptly reappointed Sean Summers in October 2023 to turn the retailer around, after warning that it would post its first interim loss. He has warned it could take at least 18 months to return it to profitability.

In a company statement, PnP said the Ackermans’ representation on the board of directors will be reduced to three members from this year’s annual meeting. Gareth, Suzanne and Jonathan Ackerman will remain on the board. Deputy chairperson David Robins, who has served on the board for 22 years, will retire at the FY24 AGM.

The board is in the process of identifying Ackerman’s successor as non-executive chairperson.

Pick n Pay Summers Pick n Pay Group CEO Sean Summers. (Photo: Supplied)



Suzanne Ackerman will remain as chairperson of the social, ethics and transformation committee and will retire from the nominations committee with immediate effect.

Over the next 18 months the board will be rotating or retiring long-serving non-executive directors.

Striking a positive tone, Gareth Ackerman said the family’s rights offer revealed their faith in the future of Pick n Pay: “The changes in the control structure being announced today are intended to support the business in its transformation under the leadership of CEO Sean Summers and his management team.

“The Ackerman family has for some time been considering the changing operating environment and the need for renewal at Pick n Pay, including at board level. To quote a favourite expression of my father, ‘We need to listen to the whispers of tomorrow’. The difficulty the business has found itself in recently has proved an opportune moment to accelerate the renewal process.”

Ackerman said that on a personal level he had been wanting to retire as chairperson for some time. He planned to stay on as chairperson to support the management through the transition until the publication of their FY25 results. DM

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