Competition continues to increase across Africa
Nakumatt plans for IPO to fund further expansion
Kenya-based Nakumatt has announced plans to list a 20% to 25% stake on the Nairobi stock exchange in the next five years, following the sale of a smaller sized stake to a third party in the next year. The retailer has said that it will use the money to continue its expansion in existing markets – its home market of Kenya, Rwanda, Tanzania and Uganda – and into new ones – such as Burundi and South Sudan. In future, Nakumatt's managing director, Atul Shah, said that it would consider cross listing the business on the Dar es Salaam Stock Exchange (DSE), Rwanda Stock Exchange (RSE) and Uganda Securities Exchange (USE) to provide further funds for growth in the respective markets.
Shoprite’s Basson highlights expansion prospects…
In an interview with South Africa-based newspaper Business Day, Shoprite’s chief executive, Whitey Basson, said that its stores outside its home market were increasingly being stocked with non-South African products. Basson said that its top three performing countries outside its home market are 80% stocked with non-South African products, noting that ‘…a lot of the stuff comes from Argentina, Brazil, Angola and the Far East, bypassing the South African authorities.’
The sourcing of products from a range of countries will help Shoprite continue its expansion in Africa, where Basson said that it was aiming to invest ZAR1.5 billion (US$140.0 million) in the next year to open 30 new stores. The retailer’s investment in the rest of Africa will outstrip its spending in its operations at home, where it is set to invest ZAR697.0 million (US$65.0 million).
…while the retailer looks for opportunities for Hungry Lion consumer foodservice brand
In a separate discussion, Shoprite's divisional manager for Hungry Lion, Adrian Basson, said that it would be looking to expand the retail footprint of its quick service restaurant, following a two year period of strategic investment to create more of a standalone business. Basson said that Shoprite had also invested in rebranding, refurbishing and rebuilding some of the restaurants and also to add standalone sites not in or adjacent to Shoprite stores. Basson also said that the chain would be aiming to benefit from Shoprite's buying and sourcing power and to help it find the best locations for new stores.
Pick n Pay invests in Zimbabwe
Continuing its investment programme in Zimbabwe, Pick n Pay has announced that it has opened a new hypermarket close to the central business district of the country’s capital city of Harare. The retailer has spent US$3 million on the store and is set to continue to invest in its operations as it looks to upgrade stores and expand its presence in Zimbabwe, with a further five stores expected to be added over the next two years, which the retailer has said will help grow space by more than 18%.
Fruit & Veg City launches in Swaziland
South Africa-based Fruit & Veg City has announced that it has opened its first store in Swaziland following the signing of a franchise agreement with locally-based businesswoman Thandi Maziya. Fruit & Veg City said that entry into Swaziland had occurred due to the improved operating conditions in the market and the ability of local farmers to meet its demands for most of its organic ranges to be produced locally.
Woolworths (SA) purchases remaining stake in Zambia-based business
South Africa-based Woolworths has announced that it has purchased the outstanding 49% stake in its Zambia-based business, giving it full ownership of its four stores in the country. Woolworths is planning to add a further three stores in the country, in its capital city Lusaka and in Kitwe and Solwezi. Discussing the step, Woolworths’s group director for retail operations, Paula Disberry, said: “Our acquisition in our Zambian business… will enable us to ensure we deliver the same brand experience to all our customers…”
Source: igd.com
