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Pick n Pay has withdrawn its proposed retrenchment consultation process that threatened to affect around 22,000 store-based employees.

The retailer said it reached an agreement with its primary labour partner, the South African Commercial, Catering and Allied Workers Union (SACCAWU).

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The section 189A process was initiated in May, as part of its turnaround strategy, with Pick n Pay arguing that changes to its labour model were needed to improve competitiveness and reduce operating costs.

Pick n Pay’s plans sparked strong opposition from labour unions, with Employment and Labour Minister Nomakhosazana Mthethwa intervening in June to facilitate negotiations.

The withdrawal of the proposed retrenchment consultation process comes as the retailer makes progress in reducing its losses.

Pick n Pay expects its headline loss per share to narrow by between 25 and 35% in the first half of its 2027 financial year, supported by improved group trading performance and growth at its Boxer discount retail business.

The retailer is expected to release its interim results on Monday.

Further details on the agreement with SACCAWU are expected in those results.

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