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Pick n Pay claims 50% of Soweto

Jun 12 2009 13:50 Marc Hasenfuss

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Cape Town - Supermarket giant Pick n Pay was heading towards a 50% market share in Soweto, CEO Nick Badminton told shareholders at an annual general meeting on Friday.

This followed the successful conversion of a number of Score supermarkets in the area to Pick n Pay outlets.

Badminton said that three years ago Pick n Pay held a market share of about 5% in the township. At present, the company operates eight Pick n Pay stores and one Hypermarket outlet.

He said Score store conversions were working well, with many converted stores managing to double turnover.

Badminton said the group had a lot of sites planned for emerging market areas.

"We already have over 100 black franchisees. Three years ago we had less than 10 black franchisee," he said.

Other new store initiatives included Pick n Pay Express stores in BP garage forecourts. Badminton said two successful pilot stores had been opened in Tokai and Hout Bay, with a more stores set to roll out in the next couple of years.

He reckoned 80 express stores could be opened over the short term.

Asked by shareholder activist Theo Botha about Pick n Pay's African expansion, chairperson Raymond Ackerman said the group recognised these opportunities but it would not just "bash up stores across Africa".

He said Pick n Pay was operating in a number of African markets, including Namibia, Zimbabwe, Mozambique and Botswana.

"We will expand one country at a time. We want to make a difference in those countries, and be welcome with business people and the governments."

- Fin24.com

 
 
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