The end of an era is upon Newcastle, as the well-known Pick n Pay QualiSave on Scott Street prepares to close its doors for the last time. This comes after decades of dedicated service to the Newcastle community, marking a significant chapter in the town’s retail history.
An insider from the store confirmed that the closure is scheduled for Sunday, 20 October 2024.
“Half of the staff have been retrenched, while the other half will be relocated to the Richards Bay branch or other Pick n Pay outlets in Newcastle,” she revealed. As this news broke, staff members could be seen packing stock and clearing shelves, while customers made their final purchases in a store that has been a staple of the community for years.
This closure is part of a broader financial struggle faced by the Pick n Pay group, which has led to the closure of several stores across Southern Africa. According to a trading statement for the 26 weeks ending 25 August 2024, released on Tuesday, 15 October 2024, Pick n Pay reported a sales decline of -0.3% (+0.5% like-for-like), with South African sales rising by a mere 0.1% (1.1% like-for-like). ” Pick n Pay sales growth lagged like-for-like sales growth due to the closure of 24 net supermarkets during the Period,” the company explained. These closures included 10 corporate stores and 14 franchise outlets.
Earlier this year, the company acknowledged that its company-owned supermarkets, which generate the majority of the group’s sales, had underperformed in recent years. As a result, Pick n Pay began the process of shutting down a number of its stores as part of a wider strategy outlined by CEO, Sean Summers in May 2024.
Moreover, Summers’ plan was aimed at closing 35 underperforming stores and converting 70 more to the Boxer brand, which caters to the mass market, or handing them over to Pick n Pay franchise operators where it makes strategic sense.
Overall, more than 100 stores will either be closed or converted, a significant proportion of the retailer’s footprint, given that it operates 300 company-owned supermarkets in South Africa.
In the latest trading statement released on Tuesday, the company reiterated that company-owned Pick n Pay supermarkets, which account for the majority of its segment sales, have been a major focus of its turnaround plan.
“As a result of improved retail operations, like-for-like sales growth for this segment increased from -0.5% in H2 FY24 to 3.1% for the Period. Against this, like-for-like sales growth in Franchise Supermarkets was a disappointing -1.4% for the Period. Company-owned Supermarkets have rarely outperformed Franchise over recent years; while the Group views this trend reversal as further confirmation of early progress in the turnaround of Company-owned Supermarkets, revitalising the performance of the Franchise stores is a key current priority,” the company stated.
As the group continues its efforts to stabilise its financial position, the closure of Pick n Pay QualiSave on Scott Street has sparked strong emotions among Newcastle residents, particularly those living nearby who have long relied on the store for their daily shopping.
With Newcastle now set to bid farewell to this iconic store, how do you feel about the closure?
Share your thoughts in the comment section below.
Comments 13
Very sad for the elderly living at la Gratitude, it was our go to for many years. For a few items or a monthly shop. The staff became friends and nice to know.
The blame must lie squarely on the desks of the executive board, their failure to adapt to change has caused this decline. Example I bought a large tennis ball at checkers for R50 exact same tennis ball is selling at R152 in pick N pay… logically they are completely out of touch with reality and boarding on insanity..
I’m devastated. So convenient to shop. Time consuming to go to the mall.
I fondly remember getting my first digital watch, as a teenager, from this store on its opening day. Its sad that it has come to this.
This particular store was terrible at customer service, non existant management and the store was always in a filthy state. It seems like for the past 10 years , the Management gave up managing the store.
Quality Save Pick a Pay served Newcastle for years and it is sad to hear of it’s closure. The local government to be blamed for the economic situation in Newcastle as well as national government with the economic situation in South Africa.
The government leaders worry about there own pockets and don’t care about citizens and that is why the unemployment is so high in South Africa.
Thanks for your long time saving the community around Newcastle central , lennoxton and surounds, but very sad to long time workers who lost their job. I wish God (Allah) will provide for them other jobs. Amen.
Government? What. I guess opinions really are like a holes.
ask yourselves why they are doing so badly especially In towns pick n pay in Newcastle has got so expensive we will rather drive a little further to checkers and bosco pick n pay have done thus to themselves so very sad my heart goes out to the retrenched staff
Grew up in Newcastle when this was not just the only Pick n Pay in town but the best supermarket in town as well. Came back after 15 years and was disappointed. Mismanagement at its finest.The shelves are perpetually bare, the staff chronically inept, rude, and generally apathetic. Not surprised live a minute away in Central but would rather drive to the mini market in Hutten Heights. I hope that the employees who get relocated learn some work ethic.
How do I subscribe to receive notifications on the news items?
Hello.
Good cheer to all on this beautiful day!!!!!
Good luck 🙂
lol hooray
About damn time.