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Send  Share  RSS  Twitter  08 Nov 2010

RETAILING: Pick n Pay Signs Deal In Mozambique


Recent Western Cape Business News

Pick n Pay announced that it had signed a franchise territorial agreement with retail franchising group Retail Masters in Mozambique to extend its African footprint still further.

According to Dallas Langman, Pick n Pay’s head of group enterprises, 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.

Based 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 supply for us into Zambia.”

Naturally one of the main benefits to the local economy will be employment and 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.

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