Pick n Pay plans Africa expansion

Times Live (Zambia) Jul 4, 2010  

Pick n Pay should use the proceeds from the sale of its struggling Australian operations to compete more effectively in South Africa and expand its footprint in the region. 

The group will also be expanding to Mozambique, Mauritius and Angola on a franchise basis, with limited capital requirements [Pick n Pay financial director Dennis Cope said.]

"A lot of other South African retailers, like Shoprite, have gone into the rest of Africa and have been very successful," said Imara ISP Reid analyst Garth Mackenzie. "It is not a bad idea for Pick n Pay to look at growing in Africa - there is still scope."

Shoprite has operations in 16 countries on the continent, while Pick n Pay has shops in Namibia, Botswana and Swaziland and has a 25% stake in TM Supermarkets in Zimbabwe.

Dollarisation of the Zimbabwean economy last year had made a "huge difference" to operations, and Pick n Pay would be "happy to increase our stake", said Cope.

Full article at http://www.timeslive.co.za/business/article531321.ece/Pick-n-Pay-plans-Africa-expansion