Boxer’s listing on the JSE is a first for a South African discount retailer and forms part of Pick n Pay’s turnaround, its CFO Lerena Olivier believes.
Soft discount retailer Boxer, which is part of the Pick n Pay retail group, officially listed on the JSE on 28 November 2024.
Lerena Olivier, Pick n Pay CFO, says: “Boxer’s listing is a milestone moment for both the Boxer and Pick n Pay teams. Boxer has delivered incredible growth over several years and the listing enables the business to access local and international capital markets to support their expansion plans.”
According to Lerena, the listing will unlock value for Pick n Pay shareholders, as Pick n Pay has retained just over a 60 percent stake in Boxer. “For Pick n Pay, the listing completes our two-step recapitalisation plan and has recapitalised our balance sheet. We now have R4 billion surplus cash to drive our Pick n Pay turnaround plan.”
Boxer, which was started in KwaZulu-Natal’s Empangeni community in 1997, is now one of the fastest growing discount supermarkets in Southern Africa. The chain, which was acquired by Pick n Pay in 2002, comprises over 500 stores across South Africa and Eswatini, with an annual turnover of approximately R40 billion.
Discount retail shows untapped market potential of R105 billion
According to Marek Masojada, Boxer CEO, the listing offers investors direct access to a ‘soft discounter’ that targets South Africa’s high-growth value retail market, worth R1.1 trillion. Soft discounters offer low prices for customers along with value-adds such as a slightly wider and diversified product offering, as well as in-store services, like financial services.
Furthermore, global strategy research house Futureworld estimates there’s an untapped market potential of R105.5 billion grocery spend in Boxer’s customer target market in locations without a Boxer presence.
“The value retail sector has the largest number of customers and is the fastest-growing segment, despite limited spending power,” says Marek. “We have high brand awareness and preference within this customer segment as our unrelenting focus on unbeatable value, quality and service resonates with the communities where we trade.”
According to Pick n Pay CEO, Sean Summers, the Boxer listing has attracted significant investor interest, and shares valued at R8.5 billion were placed at the top end of the guide price, at R54 each.
“Retaining a +60 percent stake in Boxer secures an investment in a highly attractive and valuable growth engine. It also allows us to raise the capital necessary to settle our long-term debt and invest in Pick n Pay’s core supermarket business,” comments Sean.
“We saw the potential in Boxer over 22 years ago when we first bought the company, and I have no doubt it will grow as a formidable contender in the retail sector. It’s come full circle,” he adds.
