Business / Companies
Pick n Pay to open more branches in Zimbabwe
20 Aug 2013 at 06:19hrs | Views
South African retail giant Pick n Pay is expanding its presence in Zimbabwe through its partnership with TM Supermarkets, a subsidiary of Meikles Limited, by investing US$25-million to upgrade the chain to international standards.
Pick n Pay is set to open more branches as the group seeks to expand and consolidate its market share in Zimbabwe.
There are 50 TM Supermarkets across Zimbabwe, including two which already carry the Pick n Pay name at the Kamfinsa and Westgate shopping centres in the country's capital, Harare.
Pick n Pay has owned a 49% stake of TM Supermarkets since November 2010, and has provided operational support through a skills development programme to equip the Zimbabwean local team with international best practice.
"[It is] wonderful news for stakeholders as it will re-position TM Supermarkets as a leader in a very competitive industry," executive chairperson of Meikles Limited, John Moxon said.
"Precise timelines are not yet finalised but we shall both renovate current stores throughout the country and open new ones initially in Harare, to world-class standards."
The investment and refurbishment follows the chain's six-fold increase in profits through improved management practices and better stock control, merchandising and buying strategies.
The expansion programme is being bankrolled through a $25 million loan facility from Standard Chartered Bank.
"The $25-million investment, together with a substantial internal generation of cash from increased earnings, will soon be available for the renovation of existing supermarkets and the addition of new opportunities," Moxon said.
The performance of the two existing Pick n Pay stores also contributed to the chain's positive bottom line, and helped enable the refurbishment.
Currently most products sold at Pick n Pay branched are imported from South Africa but there are efforts to increase on locally sourced products as soon industry start to manufacture adequately.
Pick n Pay currently operates 95 stores in Africa, the latest of which was opened in Luanshya in Zambia on 22 March.
Pick n Pay is set to open more branches as the group seeks to expand and consolidate its market share in Zimbabwe.
There are 50 TM Supermarkets across Zimbabwe, including two which already carry the Pick n Pay name at the Kamfinsa and Westgate shopping centres in the country's capital, Harare.
Pick n Pay has owned a 49% stake of TM Supermarkets since November 2010, and has provided operational support through a skills development programme to equip the Zimbabwean local team with international best practice.
"[It is] wonderful news for stakeholders as it will re-position TM Supermarkets as a leader in a very competitive industry," executive chairperson of Meikles Limited, John Moxon said.
"Precise timelines are not yet finalised but we shall both renovate current stores throughout the country and open new ones initially in Harare, to world-class standards."
The expansion programme is being bankrolled through a $25 million loan facility from Standard Chartered Bank.
"The $25-million investment, together with a substantial internal generation of cash from increased earnings, will soon be available for the renovation of existing supermarkets and the addition of new opportunities," Moxon said.
The performance of the two existing Pick n Pay stores also contributed to the chain's positive bottom line, and helped enable the refurbishment.
Currently most products sold at Pick n Pay branched are imported from South Africa but there are efforts to increase on locally sourced products as soon industry start to manufacture adequately.
Pick n Pay currently operates 95 stores in Africa, the latest of which was opened in Luanshya in Zambia on 22 March.
Source - www.businessdaily.co.zw
