| Mon 23 Apr 2012, 17:38 | | PIK - Pick n Pay Stores Limited - Pick n Pay BP formalise nationwide roll- |
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PIK
PIK
PIK - Pick n Pay Stores Limited - Pick n Pay, BP formalise nationwide roll-
out of small format stores
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, BP formalise nationwide roll-out of small format stores
Pick n Pay and BP Southern Africa (BPSA) will roll out small-format Pick n
Pay stores at BP service stations in the major metropolitan areas across
South Africa. PnP Express stores stock between 1,500 and 2,500 product lines
and stay open 24 hours a day, 7 days a week, 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 South
Africa.
One hundred and twenty BP Express stores will be converted to PnP Express
stores over the next five years. Additional stores may be converted after the
initial five-year period. The roll out of PnP Express stores will concentrate
on those BP sites which are most suitably located for Pick n Pay`s customers.
Both companies are confident that the format brings multiple benefits to the
two companies, their franchisees, suppliers, and more particularly to South
African customers who are in search of efficient and affordable convenience
retailing.
Deputy CEO Richard van Rensburg says "this is a great opportunity for Pick n
Pay to extend its brand offering to existing Pick n Pay customers and expose
it to BP forecourt customers too. We`ve tested the format over the past three
years and the feedback from customers is very positive."
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. "The combination of a BP
site with BP`s premium fuels offering and PnP Express creates more of an
incentive for customers to call on a BP site," said Gerard Derbesy, BP
Southern Africa CEO. "This is in line with BPSA`s growth and investment plans
over the next two years."
The agreement paves the way for significant enterprise development through
the development of new and existing franchisees and will add value to BBBEE.
Chris Reed, franchise director at Pick n Pay, says "Express stores are small
format franchise stores which, while on BP forecourts, are instantly
recognisable as Pick n Pay stores. Trading floor sizes are small and
typically vary between 150m2 and 250m2.
"Many Pick n Pay customers want to shop frequently in limited-offering stores
that are convenient, well-located and easily accessible with longer trading
hours, but they want competitive pricing too. This format provides all of
this, and also allows customers to have easily accessible free parking, speed
through the store and the tills and a full service offering."
The focus is on convenience meals, pre-packed fresh fruit and vegetables,
fresh meat, freshly baked bakery products, as well as a selection of hot
foods, including pies, chicken and hot take-away meals. Groceries, including
snacks, drinks and cigarettes, magazines and newspapers are also offered.
Customers will be able to use their Pick n Pay smart shopper cards throughout
the network.
BP`s signature Wild Bean Cafes are part of the offering. Says Reed: "Wild
Bean coffee is one of the top selling coffee brands in South Africa and will
add value to the Pick n Pay Express offering."
By order of the board
Cape Town
23 April 2012
Sponsor: Investec Bank Limited
Date: 23/04/2012 17:38:01 Produced by the JSE SENS Department.
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