| Mon 8 Nov 2010, 9:11 | | PIK - Pick n Pay Stores Limited - Pick N Pay signs deal in Mozambique |
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PIK
PIK
PIK - Pick n Pay Stores Limited - Pick N Pay signs deal in Mozambique
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/008034/06)
Share Code: PIK ISIN code: ZAE000005443
PICK N PAY SIGNS DEAL IN MOZAMBIQUE
Pick n Pay announced today that it had signed a franchise territorial agreement
with retail franchising group Retail Masters in Mozambique to further extend its
African footprint.
According to Dallas Langman, head of Pick n Pay`s Group Enterprises division,
the group planned to open its first store in March 2011. "We have signed a
Master Franchise Agreement with Retail Masters for Mozambique which will provide
us with the essential benefit of expert insights into the local market," Langman
said.
Opening in Maputo, the first Mozambican store will be approximately 3,000m2 in
size. Pick n Pay envisages opening a further three stores before the end of
2011. The first four stores will open in the greater Maputo district.
Pick n Pay has concluded successful investigations across the length and breadth
of Mozambique: "We have identified numerous opportunities for further sites and
we see enormous potential in the country which we believe is considerably under-
penetrated in terms of the kind of retail offering we will provide," said
Langman.
"It`s our intention to ensure that local farmers and suppliers are supported to
stimulate and assist economic growth in Mozambique. Logistically, we`re using
experts who deal with transportation and supply issues into Africa and currently
service our Zambian operations."
"Naturally one of the main benefits to the local economy will be employment. In
addition we are fortunate in our partners to have local ownership which means we
will be able to leverage highly experienced local market knowledge and
expertise."
Pick n Pay`s expansion into Mozambique follows its first store opening in Zambia
in July. The group also recently announced the purchase of a further 24% of
Zimbabwean operation TM Supermarkets, increasing its shareholding to 49%.
Pick n Pay`s strategy into Africa has mainly been through partnering with locals
and the franchise route, where local experts own the franchise in their own
communities. However, there are instances such as with its first store in
Zambia, where the company will develop corporate-owned stores.
Throughout Africa, Pick n Pay currently operates one store in Zambia (four due
to open in 2011), seventeen stores in Namibia, twelve in Botswana, seven in
Swaziland and one in Lesotho, together with its fifty-one-store network with TM
in Zimbabwe.
Retail Masters is chaired by Eduardo Mondlane, Jr. who holds directorships in
the Absa Group and Barclays Bank in Mozambique. Mondlane previously worked in
the Aerospace Industry with Boeing Commercial Airplanes and United Technologies
and continues to be active in the Infrastructure industry. Partner and CEO of
Retail Masters, Al-Noor Rawjee is currently a director of a number of companies
including Soprel LDA (Holding company of Mozambique`s premier private University
- ISCTEM), Monarch Gold Fields LDA (Gold Mining) and others.
For further information, please contact Tamra Veley on 083 251 3658 or Florence
de Vries on 082 835 5841.
By order of the board
Cape Town
8 November 2010
Sponsor:
Investec Bank Limited
Date: 08/11/2010 09:11:27 Produced by the JSE SENS Department.
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