10 April 2013
South African retailer Pick n Pay is expanding its presence in Zimbabwe through its partnership with TM Supermarkets, a subsidiary of Meikles Limited, by investing US$25-million to upgrade the chain to international standards.
There are 50 TM Supermarkets across Zimbabwe, including two which already carry the Pick n Pay name at the Kamfinsa and Westgate shopping centres in the country’s capital, Harare.
Pick n Pay has owned a 49% stake of TM Supermarkets since November 2010, and has provided operational support through a skills development programme to equip the Zimbabwean local team with international best practice.
“[It is] wonderful news for stakeholders as it will re-position TM Supermarkets as a leader in a very competitive industry,” executive chairperson of Meikles Limited, John Moxon, said in a statement last week.
“Precise timelines are not yet finalised but we shall both renovate current stores throughout the country and open new ones initially in Harare, to world-class standards.”
The investment and refurbishment follows the chain’s six-fold increase in profits through improved management practices and better stock control, merchandising and buying strategies.
“The $25-million investment, together with a substantial internal generation of cash from increased earnings, will soon be available for the renovation of existing supermarkets and the addition of new opportunities,” Moxon said.
The performance of the two existing Pick n Pay stores also contributed to the chain’s positive bottom line, and helped enable the refurbishment.
“These programmes will be accelerated substantially in 2013.”
Pick n Pay currently operates 95 stores in Africa, the latest of which was opened in Luanshya in Zambia on 22 March.