22 October 2014
Ghana’s growth is attracting South African investors. Local retail giant Pick n Pay will open stores in the country next year to make the most of the West African nation’s predicted 6.9% growth.
South African retailers The Foschini Group, Mr Price, Truworths and Pick n Pay rival Shoprite already have successful operations in the country.
Speaking to local newspaper Business Day, Pick n Pay CEO Richard Brasher said Africa was emerging as the company’s second engine of growth, and that the company’s “like-for-like sales in Africa, outside its home market, rose 7.8% in its half-year to August’.
“Ghana . has a lot of the similarities to the business we’re developing in Zambia. I think Pick n Pay can add value to that marketplace.’
Ghana’s growth is, according to Nielsen, “driven by political stability, sound macroeconomic policies, high gold and cocoa prices, and oil revenue’. The World Bank describes the country as the “sixth-easiest place in Africa to conduct business’.
Pick n Pay across Africa
The retailer has a strong footprint on the continent, with well-performing franchises in Botswana, Lesotho, Namibia and Swaziland, and a company-owned business (or privately owned business) in Zambia. And it plans to expand further into West Africa, with an eye on Nigeria.
Brasher said, “There is the potential to do business in Nigeria. It is complicated but there are 190 million people and it’s growing, and therefore we’ll continue to keep both East and West Africa on watch.’
The company is well aware that African markets are diverse though, saying: “We are also close to completing our analysis of the opportunities available to us in Nigeria. Our approach outside our borders remains measured, and no investment will be undertaken without a comprehensive understanding of a market and its supply chain capacities.’
The group is also dedicated to growing its South African operations, opening 46 new Pick n Pay and Boxer stores in areas without these. Its moves are paying off, with a recorded 6% growth in group interim revenue to R32.1-billion during the 26 weeks ended August 31 2014.
According to its reports, revenue from outside South Africa was up 15% to R1.7- billion, with like-for-like growth of 7.8%.