Business / Companies
TM's rebranding to Pick 'n Pay will take 3 years
16 Apr 2012 at 23:07hrs | Views
SOUTH Africa's Pick 'n Pay, which is rebranding some of TM Supermarkets after acquiring majority stake in the firm, says the exercise would take at least three years to complete. The Cape Town-headquartered supermarket chain firm is rebranding TM after it become the biggest shareholder at Zimbabwe's leading retail chain earlier this year.
The branch in Kamfinsa, Harare, will be the first to bear the South African supermarket chain's logo, with completion of the rebranding exercise expected in May.
"The whole exercise will take three to four years," said Mr Dallas Langman, Head of Group Enterprises (Africa) at Pick 'n Pay, told South African media last week.
The retail giant, the second biggest in South Africa after Shoprite, upped its stake from 25 to 49 percent for US$15 million.
Prior to the latest investment by Pick 'n Pay, TM Supermarkets was owned 75 percent by Meikles Africa and controlled almost a quarter of the groceries retail market.
The transaction with Pick 'n Pay is expected to enable Meikles to raise US$21 million required to bolster the supermarket chain's operations. In total, TM requires US$11 for capitalisation and US$10 million for running operations.
Meanwhile, Mr Langman said Pick 'n Pay would bring some skilled personnel from the company to impart their knowledge to local workers.
"We will bring some workers, although very few. We will train our partners and then let them run the business, with constant support from us," he said.
The proposal by Pick 'n Pay to increase its shareholding in TM Zimbabwe to a majority 49 percent has already been approved by the Competition and Tariff Commission.
TM is one of the businesses that are emerging from economic problems that characterised the country since 2000 but eased when the inclusive Government took office in 2009.
The retail business has shown a lot of potential especially at a time when incomes have remained somewhat low and most of people's disposable incomes is spent on basic goods.
The branch in Kamfinsa, Harare, will be the first to bear the South African supermarket chain's logo, with completion of the rebranding exercise expected in May.
"The whole exercise will take three to four years," said Mr Dallas Langman, Head of Group Enterprises (Africa) at Pick 'n Pay, told South African media last week.
The retail giant, the second biggest in South Africa after Shoprite, upped its stake from 25 to 49 percent for US$15 million.
Prior to the latest investment by Pick 'n Pay, TM Supermarkets was owned 75 percent by Meikles Africa and controlled almost a quarter of the groceries retail market.
The transaction with Pick 'n Pay is expected to enable Meikles to raise US$21 million required to bolster the supermarket chain's operations. In total, TM requires US$11 for capitalisation and US$10 million for running operations.
Meanwhile, Mr Langman said Pick 'n Pay would bring some skilled personnel from the company to impart their knowledge to local workers.
"We will bring some workers, although very few. We will train our partners and then let them run the business, with constant support from us," he said.
The proposal by Pick 'n Pay to increase its shareholding in TM Zimbabwe to a majority 49 percent has already been approved by the Competition and Tariff Commission.
TM is one of the businesses that are emerging from economic problems that characterised the country since 2000 but eased when the inclusive Government took office in 2009.
The retail business has shown a lot of potential especially at a time when incomes have remained somewhat low and most of people's disposable incomes is spent on basic goods.
Source - TH
