Pick n Pay, the second largest retailer in Southern Africa said it will be looking at setting up shop in Nigeria, latest by the year 2018.
The company disclosed this after its half year result showed that its gross revenue rose by 7% to ZAR37.4 billion versus ZAR34.9 billion recorded lastuyear.
Commenting on the result, Pick n Pay said:
‘Segmental revenue for the Rest of Africa Division, in constant currency terms, increased 8.2%, with like-for-like revenue growth of 2.7%. Reported segmental revenues were up 4.4%, (like-for-like revenue retraction of 1.2%), with local currency weakness in Zambia having a negative impact on translation. Profit before tax for this division was down 10.3% on last year’.
‘The Group opened seven new supermarkets outside South Africa during the period, three in Namibia, three in Zambia and one in Zimbabwe. The weaker performance of the Rest of Africa Division reflects the difficult trading environment in Zambia’.
‘However, the Group remains confident of the long-term prospects of the region and it plans to open three new stores in Zambia in the remainder of the year’
‘The Group’s share of the profits of TM Supermarkets (its associate in Zimbabwe) grew by 53.7% in local currency terms. TM Supermarkets now has 58 stores in Zimbabwe, 15 of which trade under the Pick n Pay banner’.
Disclosing its plans for Nigeria, the company said it is ‘on track with developing its operations in Ghana and Nigeria, with both businesses in an early start-up phase. There has been no capital expenditure in these regions to date, and administrative costs related to the development of local infrastructure and support systems have been well managed. The Group plans to open its first store in Ghana towards the end of the 2017 calendar year, with our first store in Nigeria likely to open in 2018’
The intention of Pick n Pay to enter Nigeria will make the company the second in line after Walmart disclosed earlier this year that it is looking at entering Nigeria.
Shoprite Holdings, the largest retailer in Africa already has over 15 stores across Nigeria. Game, a member of Massmart also has studio presence across key commercial hubs in Nigeria.