Bruising battle between Pick n Pay, Checkers, Spar, and Woolworths

South African retailers are fighting for market share as the local economy has stagnated, and eating each other’s lunch is now the name of the game.

South Africa has excellent food retailers. Shoprite Checkers, Pick n Pay, Woolworths, and Spar are world-class businesses.

These retailers are some of South Africa’s strongest brands and have become highly innovative in serving their customers.

However, as food retailers’ performance is closely linked to the economy, South Africa’s poor economic performance has put pressure on this sector.

Instead of experiencing organic growth due to increased economic activity, South African food retailers had to find other ways to grow.

South Africa’s real GDP per capita is lower than seventeen years ago, illustrating the challenging environment for local retailers.

This means that Shoprite, Pick n Pay, Spar, and Woolworths are trying to wrestle market share from each other for growth.

Checkers and Spar, for example, are targeting the high-end food market, which has traditionally been Woolworths’s home turf.

Pick n Pay and Shoprite, through the Boxer and Usave brands, are aggressively rolling out stores in the low-end market.

It is also not uncommon to see a Checkers take the space of a Pick n Pay store that closed down, which shows the fight for market share.

Although this is good for consumers, investors have not favoured this sector as there are no signs of a strong recovery in economic growth.

Without significant economic growth, the food retailers will continue to struggle to show meaningful growth and experience low margins.

This is illustrated in the share price performance of Pick n Pay, Checkers, Spar, and Woolworths in 2025.

All the major food retailers’ share prices have declined year-to-date, showing the challenging trading environment for these companies.

South African food retailers’ financial comparison

South African food retailers’ share price comparison