Pick n Pay completes $25m revamp

HARARE - South African supermarket retail chain, Pick n Pay, has completed a $25 million refurbishment exercise at its Borrowdale unit.

The revamp is part of the group’s refurbishment programme, which aims to spruce up six more stores across Zimbabwe using the same format, mainly in larger supermarkets.

Pick n Pay has a 49 percent stake in Zimbabwe’s largest supermarket chain, TM Pick n Pay, after partnering with TM supermarkets in 2013.

TM Pick n Pay managing director Malcolm Mycroft said the new state-of-the-art store was another example of the supermarket group’s unfailing commitment to growth, improvement and enhancement of the customer experience.

“Our plan is to refurbish most of our supermarkets in the country, but that will depend on the availability of resources,” he said, last week at the Borrowdale store’s opening.

The new-look store has a range of in-store features including in-store bakery where bread, pastries and morning goods will be freshly baked for customers everyday and a new range of beers, wines and spirits in design-led merchandising.

The latest development comes as TM Pick n Pay supermarkets’ strong performance in the six months to August 2016 resulted in its Johannesburg Stock Exchange-listed partner earning close to $27 million in profits.

Pick n Pay attributed the growth in profits to further efficiency gains and cost savings across the group’s procurement and supply chain channel.

“Growth in like-for-like trading expenses was restricted to 3,8 percent, against Consumer Price Index for the period of 6,1 percent, notwithstanding high regulatory increases in electricity, rates and other utilities,” the south African retailer said.

In the period under review, TM Pick n Pay’s profits went up 53,7 percent buoyed by increased sales due to various promotions. The supermarket group now has 58 stores in Zimbabwe, 15 of which trade under the Pick n Pay banner.

The retail chain’s stellar performance came as a surprise to Zimbabwe’s struggling economy which is battling declining and wilting consumer purchasing power owing to companies scaling down operations and cutting salaries for employees.Retail operators have also been forced to lower their profit margins and are required to pick half their stock from local suppliers.

 

 

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