South African retailer Pick n Pay’s shares took a large hit on early Monday morning trade.
The shares crashed by more than 11.14 percent and traded at R32.88 at 13:30.
The shares have dropped by 33.1 percent in the last year.
CEO GETS THE BOOT
The reason for this drop could be attributed to the fact that the company let go of its CEO Pieter Boone early on Monday.
Boone was with Pick n Pay for less than two and half-years.
He will be replaced by former CEO Sean Summers, according to the retailer.
In a statement, the Pick n Pay board said that Boone had agreed to vacate his position, effective September 30.
Boone became CEO during the height of the Covid-19 pandemic and according to the company “led the business through some extraordinary challenges, including the transition out of the Covid lockdown, the civil unrest in 2021, and the current load shedding crisis”.
He was instrumental in creating and leading the launch of the Ekuseni strategic plan, Pick n Pay said.
Moreover he also oversaw the acceleration of the Boxer, clothing and Omnichannel growth engines and the launch of the QualiSave brand.
NEW LEADERSHIP
Summers has worked with the Pick n Pay group between 1974 and 2007, and was installed as CEO in 1999.
The group said that “he has a unique understanding of the business and South African grocery retailing. During his tenure, Pick n Pay was the grocery market leader in South Africa”.
“We are delighted that Sean is coming back to Pick n Pay. His knowledge and experience are unrivalled,” Gareth Ackerman, chairman of the Pick n Pay Group said.
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