Having recently secured the A$125m (US$64.8m) purchase of 60 Franklin’s stores during the beleaguered chain’s carve-up, South African retailer Pick ‘n’ Pay has revealed plans to acquire more Australian food stores by the end of next year.
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CEO Sean Summers spoke of the company’s long term plans yesterday, but stressed that the priority is on consolidating the chain of Franklin’s stores it has acquired. Pick ‘n’ Pay has also picked up 20 Fresco stores in New South Wales, which it plans to re-brand as Franklins outlets.
The stores have a combined turnover of around A$1bn, and control 7-8% of the grocery market in metropolitan Sydney, which Summers welcomed as a significant starting point from which to get the businesses back into shape.
“By the end of next year I would like to see a business that certainly is in sound and solid shape, better than it is today… and I would like to see a business that is once again acquiring more stores and growing,” he told Channel Nine‘s Business Sunday program.
“I would sincerely like to think that by the end of next year the A$1bn of sales that we bought would be growing strongly, that we’d be showing turnover growth way in excess of inflation, and that we will be once again in a position to start acquiring further stores,” he added.
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By GlobalDataAt home in South Africa, Pick’n’Pay controls 40% of the grocery market.
