Pick n Pay expands into Mozambique

8 November 2010

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

According to Pick n Pay group enterprises head Dallas Langman, the group plans 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 in a statement this week.

Opening in Maputo, the first Mozambican store will be approximately 3 000 square metres 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.

Enormous potential

Langman said that Pick n Pay saw enormous potential in the country, which they believe to considerably under-penetrated in terms of the kind of retail offering that they would provide. He added that the company had identified numerous opportunities for further sites.

"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," Langman said. "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," he said.

African expansion

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%.

Throughout Africa, Pick n Pay currently operates one store in Zambia (with four due to open in 2011), 17 stores in Namibia, 12 in Botswana, seven in Swaziland and one in Lesotho, together with its 51-store network with TM in Zimbabwe.

SAinfo reporter