HARARE – South African-headquartered retailer Pick n Pay says it plans to open two more supermarkets in the country this year, and eventually grow its aggregate to around 65 supermarkets going forward.
The group currently has 59 supermarkets in the country, the majority of which fall under its Zimbabwean associate, TM Supermarkets.
Speaking on the sidelines of the launch of the new $25 million Borrowdale Pick n Pay this morning, the group’s managing director Mr Malcolm Mycroft said the additional branches to be set up later this year will be based in Harare and Gweru, respectively.
“We are going to open two more stores in Zimbabwe this year, one in Harare and the other in Gweru. But we are going to rebuild stores in areas which we will have identified as key areas.
“The plan is maybe to increase the footprint by a nominal percentage get to maybe 60 to 65 stores. But in the short-term, the next three to five years the target is to increase and improve the customer offer that we have and make this store here (Pick n Pay Borrowdale) our flagship benchmark for retail in Zimbabwe,” he said.
With the new Borrowdale Pick N Pay, the Pick N Pay banner now has 16 supermarkets under it.
Mr Mycroft said there were no plans whatsoever to rebrand the existing TM Supermarkets to the Pick n Pay brand, but the group would invest in improving the customer offering at all TM outlets.
“We have a very good footprint in Zimbabwe with TM – Pick N Pay, around 58 stores all over the country. The plan is to increase the Pick n Pay footprint and at the same time to improve the customer offer with the TM Supermarkets. A lot of them are quite old, they need a lot of TLC (tender, love and care), they need an injection of new refrigerators and equipment. So we are going to be investing not only in Pick n Pay, but in TM as well.
“We will never lose the TM brand, it’s an established brand in this country and TM is a standalone business, we will never take away the TM brand,” said the MD.
The TM Supermarkets have been performing well, and in the 26 weeks to August 28, 2016 their share of earnings for the group grew 81, 5 percent on the same period last year to R28, 5 million, with growth of 53, 7 percent in local currency terms.