3 October 2011
South African retailer Pick n Pay has opened its first store in Mauritius, at the Bagatelle Mall outside the capital, Port Louis, and is to open a second store on the island nation next year, as part of its African expansion strategy.
Pick n Pay group enterprises head Dallas Langman said the first store is approximately 4 000 square metres in area and will offer over 16 000 different products, including clothing.
“Based on our comprehensive research and assessment, Mauritius has one of the most successful and competitive economies in Africa, providing further impetus for our investment into the country,” Langman said in a statement this week.
Pick n Pay’s entry into Africa has mainly been through partnering with locals and via the franchise route, where local experts own the franchise in their own communities.
However, there are instances, such as with stores in Zambia, where the company will develop corporate-owned stores.
“The Mauritian stores will be run by franchisees and will be a significant drawcard through its offering of an appealing array of products to Mauritian residents and tourists,” Langman said.
Supporting local suppliers
He added that the group aimed to support local suppliers as much as possible.
“Finding local suppliers and entrepreneurs requires determination and effort but it is integral to our model,” he said. “It is our intention to ensure that local farmers and suppliers are supported as much as possible in order to stimulate further economic growth in Mauritius.”
Langman said that one of the main benefits to the local economy would be through employment, and that the first store would employ approximately 100 local residents. This figure would increase as the company opened more stores in the country.
Pick n Pay’s expansion into Mauritius follows its first store opening in Mozambique in June and its second store opening in Zambia in March. Last year, the retailer also announced the purchase of a further 24% of Zimbabwean operation TM Supermarkets, increasing its shareholding to 49%.
“We plan to open stores in Malawi and Angola in the future,” Langman said. “We are set to continue along this expansion path in a planned and deliberate way.”
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