PICK N PAY enters Zambia, pushes foreign growth

Planet Retail 29 Jul 2010

South African retailer Pick n Pay has opened its first store in Zambia, in the capital city Lusaka, as it enters a new phase of aggressively accelerated international expansion. The retailer is planning to grow its Zambian network to seven company-owned outlets during the next five years.

As reported by fastmoving.co.za, Group CEO Nick Badminton said Zambia offered opportunities for foreign investors willing to enter into partnerships with local communities and government agencies, stressing that "a country which experienced a direct foreign investment inflow of USD1.3 billion in the first quarter of 2010 deserves to be taken seriously as an investment destination".

Pick n Pay's move into Zambia comes shortly after the retailer announced a series of market entries for 2010 and 2011, including Angola, Mozambique, Mauritius and Malawi. The company's strategy to focus on Sub-Saharan Africa exclusively was also underlined by its recent announcement of market exit from Australia, which is expected to be formalised in September this year. Badminton said: "The southern African region represents an increasingly attractive market for us. As disposable incomes continue to grow, the region's retail potential remains largely untapped."

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