Retail news. Semester 1 of 2014 table of contents

Pick n Pay takes its brand to Zimbabwe. 12 Jun 2012

Despite growing concerns over Zimbabwe's continuing 51% indigenisation programme that has ruffled the feathers of foreign investors, South African retail giant Pick n Pay is expanding in Zimbabwe, with plans to open a new supermarket in Harare at the end of the month.

The store in Kamfinsa will be the first Pick n Pay store in Zimbabwe bearing the company's logo and will culminate in a rebranding exercise of all TM supermarkets countrywide - where Pick n Pay holds a 49% stake in the supermarket chain.

Ozias Makamba, finance director at Meikles Africa, the Zimbabwe stock exchange-listed company that previously owned the majority 75% stake in TM supermarkets, said TM Pick n Pay would open at the end of the month and that it started refurbishments at TM Borrowdale that will be followed by TM Mutare, Masvingo and Gweru.

The South African retailer's expansion in Zimbabwe began at the end of last year when the Competition and Tariff Commission gave the green light to Pick n Pay to increase its shareholding in TM supermarkets from 24% to 49%, in a deal that saw $15m injected into the supermarket chain. With 51 stores countrywide, TM supermarket controls almost a quarter of the groceries market.

Its biggest competitor, OK Zimbabwe, has said it was ready to take on the new challenge posed by its South African-backed rival. But economic observers warned that Pick n Pay's expansion into Zimbabwe, brought on by the stabilisation of the country's economy in February 2009, would pose a further challenge to efforts to revive the local manufacturing industry.

Tony Hawkins, an economics professor at the University of Zimbabwe, said Southern Africa had been turned into a huge supermarket of South African products. All the leading chains, Shoprite, Pick n Pay and Spar, are expanding northwards. "This is not great news for the local manufacturing industry at all."

Earlier this year, Finance Minister Tendai Biti echoed the sentiments, saying that South African products accounted for more than 70% of grocery imports.

Source: Business Day

Pick n Pay opens first supermarket in Zimbabwe. 22 Jun 2012.

Retailer Pick n Pay opened its first supermarket in Kamfinsa‚ Zimbabwe‚ on Thursday, 21 June 2012.

The supermarket‚ the first Pick n Pay-branded store to open in Zimbabwe since it took control of 49% of TM Supermarkets‚ is situated in the Kamfinsa shopping centre in eastern Harare and will stock a full range of local and imported products.

"We are proud to be opening our first Pick n Pay at Kamfinsa‚" said Dallas Langman Director Group Enterprises Pick n Pay. As the anchor tenant of the centre - which has been rebuilt and refurbished by Pearl Properties - we've seen the transformation that has already taken place in the suburb of Greendale."

The store comprises a Pick n Pay Supermarket‚ as well as stand-alone Pick n Pay Liquor and Clothing stores. "These will offer world-class merchandise to customers at the best possible prices‚" said Langman.

Mark Vickery TM Chief Executive Officer said: "This development will offer a similar experience to our shoppers to that of any southern African Pick n Pay supermarket‚ it's a real 'taste' of what we have planned for Zimbabwe over the next two years."

The PnP outlet is the anchor tenant‚ coupled with a collection of supporting services‚ in the refurbished shopping centre.

PnP has provided operational support to TM Supermarket‚ through a skills development programme designed to equip the Zimbabwean local team with international best practice in a variety of retail disciplines that will ultimately result in a unique‚ new and fresh shopping experience for the customer.

"The customer has always been at the centre of all we do‚ and we believe that our partnership will result in a productive sharing of ideas that will mean service delivery to the customer‚ comparable to anywhere in the world‚" Vickery added.

A number of Pick n Pay branches will be opened‚ many of them at sites where TM Supermarkets have been operating.

Langman said the supermarket would emphasise the "fresh" concept with a minimum of 40% of floor space being dedicated to fruit and vegetables‚ deli‚ and confectionary. "This is our response to the fact that people want to eat more healthily; and we will be offering an infusion of traditional health food‚ as we have seen high turnover in traditional lines of fresh food."

The TM chain currently has 50 stores in Zimbabwe and the Kamfinsa Pick n Pay store will be the first in its strategy of offering the best brands to customers. Pick n Pay currently operates 17 stores in Namibia‚ 12 in Botswana‚ seven in Swaziland and one in Lesotho‚ together with the its first Zambian store.

"We pledge that the shopping experience in all our Pick n Pay stores will be second to none‚ both in terms of store ambience and most importantly giving customers real and great value for their hard earned money".

As at financial year end (February 2012) Pick n Pay operated 94 stores in Africa.

Pick n Pay, BP to roll-out small-format stores

By: Zeenat Moorad

23 Apr 2012 14:21Submit a commentBizLike

Retailer Pick n Pay and BP Southern Africa have formally combined forces which will see the roll out of small-format Pick n Pay stores located at BP service stations in the major metropolitan areas across SA, the companies said on Monday, 23 April 2012. PnP Express stores stock between 1,500 and 2,500 product lines and stay open 24/7, catering to the convenience retail market.

The two companies initially signed a memorandum of understanding in July 2008 and have been testing the model since opening the first two PnP Express stores in Hout Bay and Tokai in the Western Cape at the end of the same year.

There are currently nine Pick n Pay Express stores on BP forecourts in SA.

"The initial plan is for 120 BP Express stores to be converted to PnP Express stores over the next five years, although additional stores may also be converted after the initial five-year period," Pick n Pay said. The roll out will concentrate on BP sites which are most suitably located for Pick n Pay's customers.

Both companies said they were confident that the dual format brought multiple benefits to the two companies, their franchisees, suppliers, and more particularly to South African customers who were in search of efficient and affordable convenience retailing.

"We've tested the format over the past three years and the feedback from customers is very positive," Pick n Pay's Deputy CEO Richard van Rensburg said.

International experience suggests that small format stores often spur growth and most leading global retailers have a multi-channel presence, including forecourt outlets.

The agreement brings into play key strengths of both businesses, and enables Pick n Pay to expand its small store format while continuing to create new entrepreneurs, in line with its franchise strategy.

Gerard Derbesy, BP Southern Africa CEO said the offering was in line with BPSA's growth and investment plans over the next two years.

According to the companies, the agreement paved the way for significant enterprise development through the development of new and existing franchisees and will add value to B-BBEE (broad-based black economic empowerment).

Chris Reed, franchise director at Pick n Pay, said express stores were small format franchise stores, which, while on BP forecourts, were instantly recognisable as Pick n Pay stores.

"Trading floor sizes are small and typically vary between 150 square metres and 250 square metres," he said.

Pick ‘n Pay to inject US$21m into TM: HERALD.