Nvidia Keeps Doubling. The Market Keeps Doubting.

Checkout Wars: One Trolley Fills, The Other Stalls

Fenestra weighs Shoprite’s operating record and customer value against Pick n Pay’s repeated resets and turnaround risk. The comparison considers management, execution, Boxer and the sales-growth and margin improvements needed to support a stronger investment case.

Diamond: Shoprite

Shoprite CEO Pieter Engelbrecht earned R117.8 million in 2026 according to the latest financials which is R2.26 million a week.

This seems outrageous but consider the following.

Engelbrecht was appointed as Chief Operating Officer in 2005 and worked with Whitey Basson, the CEO.

Shoprite’s latest results continue to impress the market with its shares reaching all-time highs.

Customer value and the investment case

Annual profit rose to R16.2 billion and this is not at the expense of the consumer. For example, Shoprite’s Chief Sustainability Officer, Sanjeev Raghubir, noted that a customer can walk into a Shoprite right now and buy a loaf of bread for five rand. In the 2025 financial year more than 13 000 products in its stores were cheaper than the previous year. A nice fun fact – the 27.7 million loaves of R5 bread sold in 2025 would stretch from Cape Town nearly all the way to London. Shoprite is now worth more than Pick ‘n Pay, Spar, Woolworths and Boxer combined. Shoprite is a genuine gem on the JSE.

Dog: Pick ‘n Pay

Pick ‘n Pay is clueless and is still searching for its recipe. So many years of strategy resets, management changes and costly restructuring have left it trailing Shoprite on growth, margins and customer momentum. Were it not for its holdings in Boxer, Pick ‘n Pay would no longer exist. The sale of about a third of its Boxer shares raised enough capital to allow Pick ‘n Pay to try again.

Funding and turnaround execution

The Boxer listing was meant to unlock value and sharpen focus, but the core supermarket business remains the problem: patchy store standards, uneven pricing perception and Shoprite’s delivery offering that has eaten its lunch. Funding raised through Boxer has strengthened the group balance sheet, but the core supermarket business still needs a sustained operating recovery. Recovery in grocery retail is slow and turnaround plans carry a very high execution risk.

Investors have been promised “the next phase” too often. Until like-for-like sales growth and margins improve consistently, the shares look more like a speculative hope than a sound holding, cheap for a reason, and patience has not been rewarded.

Frequently asked questions

Why does Fenestra favour Shoprite in this comparison?

Fenestra highlights Shoprite’s management experience, operating performance and customer value as strengths in its investment case.

How does William Meyer assess Shoprite’s leadership?

William Meyer considers Pieter Engelbrecht’s pay alongside his operating experience and years working with Whitey Basson, rather than considering the pay figure in isolation.

Why does Boxer matter to Pick n Pay’s turnaround?

Fenestra sees Boxer as an important source of support and capital for Pick n Pay. The core supermarket business still needs to improve its performance.

What risks does Fenestra identify in Pick n Pay’s recovery?

Fenestra points to uneven store standards, pricing perceptions, delivery competition and the execution risk involved in a grocery turnaround.

What would strengthen Pick n Pay’s investment case?

Consistent improvement in like-for-like sales growth and margins would strengthen the case. Fenestra remains cautious after repeated strategy resets and management changes.

Does a low share price make Pick n Pay a sound holding?

Fenestra’s view is that a low price alone is insufficient. Operating improvement must support the valuation; a turnaround remains uncertain and carries execution risk.

William Meyer