Ackerman family to relinquish control of Pick 'n Pay after 60 years

Bruce Whitfield speaks to Sean Summers, CEO of Pick n Pay.

The big news in the South African business landscape on Monday was the announcement that spells the end of the Ackerman family control of Pick n Pay.

The retail supermarket chain's founder, Raymond Ackerman famously bought four stores from Jack Goldin in the 1960's, and grew it into empire into which we know it today.

Raymond Ackerman died in last year at the age of 92.

Goldin of course took the spoils from his four Pick n Pay stores and went onto create Clicks.

The Ackerman's have always had the final say on matters having to do with the group, however that's about to change. 

Towards the end of last year the family reappointed Sean Summers as CEO, where he's undergoing a complex capital raise.

Many commentators at the time of the announcement of Summers' return to Pick n Pay, suggested other shareholders would want to see an end to the family control of the business if they were to back the turnaround plan.

Gareth Ackerman, son of Raymond Ackerman will step down next year after 14 years as Pick n Pay chairperson.

The Ackerman's will invest a little over a R1bn as part of a R4bn capital raise, giving them just under 50% of the shares in issue at Pick n Pay. 

Speaking to Bruce Whitfield on The Money Show, Pick n Pay CEO Sean Summers says this is a big change given the long history of the supermarket group.

"In terms of the history and evolution of Pick n Pay, to a degree it's the closing of one chapter, but very positively, the opening of another."

- Sean Summers, CEO - Pick n Pay

"It's not as if you're say they've sort of closed the book on Pick n Pay at all. They're following their rights as a very significant investment, both in the management team and the turnaround strategy, absolutely keeping their link with Pick n Pay going forward, which is vital for us" 

- Sean Summers, CEO - Pick n Pay

"...the Ackerman's have always been Pick n Pay, and Pick n Pay has always been the Ackerman's. It's important for our people in the company and to the broader consumer market as a whole, across the country."

- Sean Summers, CEO - Pick n Pay

"They will still be very, very large shareholders in the company, but they acknowledge at this stage of the evolution of the company, it's right and appropriate that the board now evolve to a new governance and control structures".  

- Sean Summers, CEO - Pick n Pay

Scroll to the top to listen to the full interview.