Highlights
- Pick n Pay Closes 32 Stores to Survive
- SPAR Loses 13 Stores, Blames Operational Failures
- Truworths Holds Steady (For Now)
Major Retailers Shutter Stores in South Africa as Economic Pressures Mount
South Africa’s familiar retail landscape is shifting faster than shoppers can keep track. Major names like Pick n Pay, SPAR, Woolworths, Shoprite, and Italtile are closing dozens of stores or realigning their business models. The big question is why now, and what it means for consumers, employees, and the future of retail.
It is very important to unpack the reasons behind these high-profile closures, highlights how retailers are adapting, and explores what this means for the average South African household.
Big Retailers Pull Back From Main Street
Several household names have recently closed, relocated, or restructured a significant number of stores. Here’s a closer look at what’s driving these decisions and how each retailer is coping.
Pick n Pay Closes 32 Stores to Survive
Pick n Pay, once considered South Africa’s go-to for groceries, has had a tough time lately. After reporting a massive after-tax loss of R3.2 billion for its 2024 financial year, the chain made the drastic decision to close 32 supermarkets (24 company-owned and 8 franchise locations) and convert another five to franchises. The aim is clear: cut losses and focus on profitable stores.
To stay afloat, Pick n Pay raised R4 billion in a Rights Offer and R8 billion from listing its Boxer division. The company’s “Store Estate Reset” focuses on streamlining operations and boosting profitability. Early signs suggest some stability, with a marginal sales increase of 1.6% in core stores, but competition from rivals like Shoprite remains fierce.
Key stats
- 32 store closures in 2025
- R3.2 billion net loss for 2024
- R4 billion in new capital raised
SPAR Loses 13 Stores, Blames Operational Failures
SPAR shuttered 13 underperforming locations in its South Rand Region, a move directly linked to deep operational and technology struggles, including a failed SAP ERP rollout at its KwaZulu-Natal distribution center. This blunder disrupted the supply chain, with some independent franchisees switching to other suppliers. Even as the company works to repair trust and resolve the system breakdown, the closures underscore how fragile even iconic supermarket brands can be in a wavering economy.
SPAR is now investing R800 million in tech upgrades and distribution to deliver a more reliable experience. The company hopes for a 5% boost in operational efficiency by late 2025.
Key stats
- 13 store closures announced early 2025
- Heavy IT investment and supply chain overhaul
- Focus on restoring retailer confidence
Italtile Retreats From Crime Hotspots
The home improvement giant Italtile is moving out of areas with persistent crime, closing or relocating several stores and refocusing resources on safer locations. The company lost 1% in turnover (down to R6.1 billion in the last six months of 2024), but its plan to open ten new stores in more secure areas signals a pivot that many businesses may have to follow as infrastructure and security issues persist.
Intense competition from international, tariff-protected suppliers (especially tile producers from China) also plays a role in tightening margins for domestic retailers.
Key stats
- Multiple store closures/relocations due to crime
- Planned R300 million expansion in safer areas
Woolworths Shifts From Food Stores to Non-Food Growth
Woolworths closed five food stores, but unlike most competitors, it’s increasing its reach in fashion, beauty, and home retail. The brand opened 21 new non-food outlets, reflecting a clear pivot away from vulnerable parts of the market.
The company continues to bet big on online shopping, targeting a 20% jump in digital sales by 2026 with a R400 million investment in e-commerce. Woolworths’ expansion strategy, with plans for 22 new food outlets by mid-2025, signals confidence but with a sharper focus.
Key stats
- 5 food store closures, 21 new non-food outlets
- E-commerce and pet care segments prioritized
- Aiming for strong online growth by 2026
Shoprite Closes 16 But Opens Over 250 New Stores
Shoprite closed 16 stores during the past year. Unlike others, the company is charging ahead with massive expansion, adding 264 new shops, including 43 USave outlets aimed at budget shoppers. Growth is especially high in specialist segments like pet retail, where its Petshop Science arm saw double-digit store and sales increases.
Shoprite’s closing of a handful of locations is dwarfed by its aggressive investments, showing a distinct split in the sector between consolidation and bold new bets.
Key stats
- 16 store closures in 2025
- 264 new shops opened across all brands
- Pet retail sales jump by nearly 57% year-over-year
Truworths Holds Steady (For Now)
Unlike its peers, clothing retailer Truworths has resisted the closure trend in South Africa. Its strategic focus on online sales (up 38% over the past year) and a resilient performance in its core market have allowed it to keep all local outlets open. Still, cross-border challenges loom, with store shutdowns reported in Zimbabwe due to increased competition from second-hand markets and economic instability.
Key stats
- 0 announced store closures in South Africa
- 2.4% overall retail sales growth
- Online now 5.8% of retail sales
Common Themes Behind the Closures
Several factors are driving these recent store closures, and they all reflect broader economic currents and consumer habits in South Africa.
Weak Consumer Spending
With high inflation and interest rates, shoppers have less disposable income. Retailers are seeing weaker sales in both essentials and discretionary categories, prompting tough decisions about which stores can stay open.
Climbing Operational Costs
From electricity and rent to security and supply chain logistics, the cost of running a store in South Africa keeps rising. Retailers face pressure to streamline their operations, especially in less profitable or high-risk locations.
High Crime and Infrastructure Failures
Many closures stem from safety issues and inconsistent municipal services. Frequent load-shedding, poor road maintenance, and surging crime make certain neighborhoods unviable for stores that rely on stability.
Digital Disruption and Online Shopping
Brands with weak online platforms, like SPAR, are losing ground as more South Africans shop online. Chains with strong e-commerce strategies, like Truworths and Woolworths, are proving more resilient and flexible.
Strategic Missteps
Some chains suffer from trying to do too much, like Pick n Pay’s failed strategy to appeal to all segments rather than focusing on its strengths. Others, like SPAR, paid the price for failed technology rollouts. The retail landscape now punishes hesitation and indecision.
What These Closures Mean for South Africans
Shuttered shops mean job losses, reduced local choice, and often higher prices as competition wanes. But store closures alone do not signal the death of retail. Instead, they are part of a necessary evolution in a rapidly changing economy.
Potential impacts
- Fewer physical shops, especially in struggling suburbs or rural areas
- Growing focus on e-commerce and delivery platforms
- More aggressive expansions in profitable niches (like pet care or homewares)
- Job losses offset, in part, by new roles in logistics, tech, and customer service
Where Does South African Retail Go From Here
The sector faces a crossroads. Companies that double down on innovation, focus on their strongest markets, and adapt quickly to new tech and consumer needs are likely to thrive. Those that remain slow to change or ignore digital transformation may continue to fall behind.
Shoppers should expect fewer but better stores, rising prices for imported or specialist goods, and a national retail sector that looks remarkably different in just a few years. For entrepreneurs, suppliers, and workers, strategic thinking and agility will be essential.
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