Annual Report




Our six capitals

Our ability to create long-term sustainable value for stakeholders depends on the use of various capitals within our business. The International Integrated Reporting <IR> Framework supports integrated financial reporting, and, in particular, the reporting of the Group's business model across these six forms of capital. Refer to "Our business model" on pages 20 to 21 for more information.




Social and relationship



Our key stakeholders

The Group is committed to open and constructive engagement with all our stakeholders. Our business model and strategy are designed to consider and address the issues and concerns most relevant to our key stakeholders. Refer to the "Engaging with our stakeholders" section on pages 38 to 41 for more information.







Our business acceleration pillars

The second stage of our strategic long-term plan is organised around seven business acceleration pillars. These pillars represent the material growth opportunities that can materially affect our ability to create value over the short, medium and long term. Refer to our "Strategic focus" section on pages 44 to 51 for more information.

Better for customers

A flexible and winning estate

Efficient and effective operations

Every product, every day

A winning team

a national brand

Rest of Africa – a second engine of growth



We are pleased to present our
2018 integrated annual report
for the 52 weeks ended
25 February 2018.

The Board acknowledges its responsibility to ensure the integrity of the integrated annual report and believe it provides stakeholders with an accurate and balanced view of the Group's strategy, past performance, and future prospects, and addresses the material issues faced by the Group. The Board approved the integrated annual report for release to stakeholders on 22 June 2018.

Gareth Ackerman

Richard Brasher
Chief Executive Officer


The integrated annual report is our primary report to stakeholders. It is principally aimed at providers of financial capital, being our shareholders and debt providers; however, it considers the information needs of all our stakeholders. This includes customers, suppliers, franchise partners, employees and wider community groups.

We believe this report provides our stakeholders with a good understanding of our business and how our strategy supports sustainable value creation in the short, medium and long term. This report provides insight into the Group’s financial and operational performance, as well as the opportunities and related risks faced by the Group. It further demonstrates how these risks and opportunities underpin our business model, strategic objectives, governance structures and remuneration policy.


Materiality has been applied in determining the scope and content of the integrated annual report, to ensure the report focuses on information that the directors believe is material to its stakeholders’ understanding of the business and its ability to create sustainable value over the short, medium and long term. In determining materiality and material issues, the Board takes into account the macroeconomic environment, changing industry and consumer trends, and the expectations and concerns of stakeholders. Material issues are also considered with reference to the Group’s underlying capitals, which impact its ability to create value over time.

Materiality is determined, reviewed and approved annually by the Board. The Board considers those matters that could substantially affect the Group’s ability to create value over time and materially impact the Group’s current and projected revenue and profitability. These material matters include:

  • Consumer environment
  • Competitive environment
  • Effectiveness of our procurement and distribution channel
  • Food and other health and safety standards
  • Effective execution of our strategy and long-term sustainable value creation
  • Effectiveness of our information systems and technology
  • Building and retaining a talented and diverse retail team
  • Volatility of the Group’s Rest of Africa division

For more insight into our materiality determination process, see the diagram on page 32 of this report.


This report covers the integrated financial and non-financial performance of Pick n Pay Stores Limited and its subsidiaries and associate (the Group).

For more detail on the scope and boundary of this report, including forward-looking information, assurance, report structure and feedback, and distribution through online reporting, please pages 102 to 103.

Any comments or requests for additional information can be emailed to our Company Secretary at

To best meet the needs of our various stakeholders, we produce a suite of publications that are tailored to meet our readers’ specific information requirements, and comply with the reporting frameworks detailed below.

Integrated annual report 2018

A review of the Group’s strategy, material issues, risks and opportunities and our operational and financial performance for the period. The report includes relevant extracts of the 2018 annual financial result, disclosure on environmental and social sustainability, our governance structures and our remuneration report.

  • The King IV Report on Corporate Governance™ for South Africa 2016 (King IV™)
  • The Global Reporting Initiative’s Standards (for reporting non-financial information)
  • The Companies Act, No 71 of 2008, as amended (Companies Act)
  • The JSE Listings Requirements
  • International Financial Reporting Standards (IFRS)
  • The International Integrated Reporting Framework
Annual financial statements 2018

The audited Group and Company annual financial statements for Pick n Pay Stores Limited for the 2018 financial period. The report includes our audit, risk and compliance committee and directors’ reports.

  • Companies Act
  • The JSE Listings Requirements
  • IFRS
  • King IV™
Corporate governance report 2018

A review of the Group’s commitment to good corporate governance in the implementation of the Group’s strategy and governance framework. The report includes our notice of the annual general meeting and Board committee reports.

  • King IV™
  • Companies Act
  • The JSE Listings Requirements
Summarised results and 2018 AGM notices

A high-level review of our operational and financial performance, including summarised audited Group annual financial statements, remuneration report, relevant shareholder information, and notice of the annual general meeting and proxy voting form.

  • Companies Act
  • The JSE Listings Requirements
  • IFRS
  • King IV™
Sustainable living report 2017

This report is published in full every two years, and details our sustainability strategy and performance against strategic non-financial targets.

  • King IV™
  • The Global Reporting Initiative’s Standards
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  Print version icon Print version available