Monday, 17 October 2011 00:00
|
Golden Sibanda Senior Business Reporter
PICK ‘n Pay can now inject US$21 million to recapitalise TM Supermarkets after Government approved the South African retailer's proposal to raise its stake in TM Supermarkets from 25 percent to about 49 percent. Former chief executive Mr Brendan Beaumont early this year said the retail chain required US$10 million for capital projects and US$11 million for working capital.
After injecting fresh capital in TM, the SA retailer will announce its increased presence by rebranding selected TM outlets as Pick ‘n Pay.
Since dollarisation, the local retail giant has struggled to stock adequately while its refrigeration equipment required replacement or rehabilitation. Despite managing to maintain a significant portion of the retail market, TM Supermarkets has faced stiff competition from other players.
But all this could be ended after the Ministry of Youth Development, Indigenisation and Empowered approved its proposal to up its stake.
Indigenisation Minister Saviour Kasukuwere confirmed the Meikles-Pick ‘n Pay transaction last Friday, adding that fresh capital injection into TM Supermarkets would bring healthy competition.
"They wanted to increase their investment in TM to 49 percent," said the minister. "They had about 25 percent and further investment will get them to 49 percent or thereabouts. They will inject capital for rehabilitation of equipment and working capital, which will lead to enhanced supply."
He said the ultimate winner would be the consumer, as they "will be able to get better service and prices from the retailer".
TM had been desperate to recapitalise after suffering a 2,4 percent shrinkage in 2009 due to serious capital and working capital constraints. Mr Beaumont had said TM had "point-of-sale technology in only six of its 53 branches and this is a key issue in shrinkage and management of selling prices".
This had resulted in the retail giant losing its pace among the country's leading retailers with the former CEO putting it at number three after OK and Spar.
For well-recapitalised and managed retail businesses Zimbabwe offers good returns, as shown by increased interest in the sector by SA retailers. At one point South Africa's biggest retail chain showed interest in acquiring a stake in OK Zimbabwe, but for unexplained reasons pulled out.
Zimbabwe makes for a good retail investment, considering incomes are still low as the economy is yet to recover from a decade of instability. Disposable incomes have largely remained low since February 2009.
|
Consumer Council of Zimbabwe Tuesday, 02 April 2013. |
Rosemary Siyachitema
The Consumer Council of Zimbabwe last week petitioned Parliament to pass a consumer protection law which it said was long overdue.
The CCZ has since 2010 been lobbying Government to enact the Consumer Protection Act.
Consumer protection laws were designed under United Nations guidelines to shield consumers against injustice and abuse.
Handing over the petition to Parliament, CCZ executive director Rosemary Siyachitema said existing consumer laws were weak and unclear.
“We are demanding that the Government approves the Consumer Protection Law into a Parliamentary Act because consumers are suffering under the weak consumer laws such as Small Claims Act and Consumer Contract Act,” she said.
Mrs Siyachitema said there was no reason for government to continue delaying enactment of the law.
“CCZ is now calling for the government to fast track the placement of this law into process since we signed for human rights under UN guidelines and the majority has accepted the new constitution which also addresses the issue of consumer rights comprehensively,” she said.
Receiving the petition, deputy clerk of Parliament, Mr Kennedy Chokuda said he hoped the issue will receive urgent attention. - New Ziana.
|
Top of Form
New owners for Toys R Us and Reggie's. 4 Dec 2012
Toy and baby retailer Redgwoods (Pty) Limited, owners of Toys R Us and Reggie's stores, has been sold to Durban-based businessmen Christian Larsen and Mohsin Mia. The company was sold as a going concern by Maurice Sacher and Issy Zimmerman who each owned 50% of the business. The sale, for an undisclosed amount, was concluded after five months of negotiations. The new owners take over a business consisting of 65 stores countrywide as well as Reggie's and Toys R Us online stores.
"We have built a very successful business which is profitable but we feel it is time for us to enter a new phase in our lives and pursue other interests. There are no immediate changes forecast for staff or systems," says Zimmerman.
He said Mia and Larsen are a perfect match for the business with strengths in logistics, sourcing and licensing, having been in the wholesaling of toys and baby products for nearly 13 years. They were the largest local supplier to Redgwoods in 2011. They have however on-sold their wholesale toy and baby business to a German toy manufacturer who is seeking a foothold into Africa.
"They will add tremendous value to the supply chain and further enhance profitability of the Toys R Us and Reggie's brands."
Zimmerman said the transaction has been approved by South Africa's competition regulators and brand owners Toys R Us International.
The new owners envisage an aggressive store roll-out into Africa and a revamp of the store formats including the introduction of smaller versions for convenience.
The effective ownership and control was officially passed onto the new owners on 1 December 2012.
Dostları ilə paylaş: |
