HARARE The Meikles group has agreed to allow Pick n Pay to rebrand TM Supermarkets, after a deal in which the South African retailer will shore up its shareholding in the supermarket chain to 49 per cent.
Reliable sources said Pick n Pay will increase its stake in TM Supermarkets from 25 per cent for US$13 million, and the Pick n Pay brand will appear in at least six top tier retail outlets in Harare, Bulawayo, Mutare and Victoria Falls. Pick n Pay had funded the re-imaging of TM Borrowdale, which could become a model for the rebranded outlets, which will be fully stocked with Pick n Pay branded merchandise.
Mid-tier TM Supermarket outlets are likely to experiment with the ‘Extreme Value’ brand. Its a way of responding to competition from other retailers, particularly Spar, which has rolled out a number of upmarket stores. The group also has to deal with the emergence of Chinese shops that have captured a significant portion of the market, said a source.
Pick n Pay has supported TM Supermarkets with stock since the introduction of Foliwars licences last year, which allowed local companies to trade in foreign currency. When the country dollarised early this year, the South African group extended a large chunk of cash to enable the local operation to restock.
Pick n Pay is also expected to provide management to the Zimbabwean retail chain, and directors had indicated the existence of close coordination and assistance from Pick n Pay South Africa.
Post published in: Economy