South African retailer Pick n Pay has revealed it will expand its operations on the African continent over the coming year, with plans to enter Malawi and the Democratic Republic of the Congo.
A spokesperson for the group, South Africa’s second-largest retailer, told just-food today (18 April) the company will move into Malawi and the DRC in the second and third quarters of next year.
“The DRC will be a corporate operation and Malawi, at this stage, a master franchise [agreement] but this may change,” the spokesperson revealed.
Through a master franchise agreement, Pick n Pay will grant a master franchisee the right to grant further franchises in Malawi. The company has entered various territories, such as its recent expansion into Mozambique, in a similar fashion.
“Both of these countries will be greenfield sites at this stage but if any acquisitions present themselves we would of course have a look at them.”
Earlier today, Pick n Pay reported an 8.1% increase in full-year sales but a 10.6% drop in profits, which were dented by the retailer’s extensive capital expenditure programme.