CTC okays TM deal

percent.
Pick ‘n’ Pay – which manages more than 700 stores in South Africa, Zambia, Angola and Mozambique – already holds 25 percent in the TM Supermarket chain.
The South African group will invest US$13 million.
“The CTC has now approved the additional investment by Pick ‘n’ Pay into TM Supermarkets,” a TM spokesperson said yesterday.
“All regulatory approvals pertaining to this transaction are now at hand.”
The deal had been approved by the Reserve Bank of Zimbabwe and the Youth Development, Indigenisation and Empowerment Ministry.
The first Pick ‘n’ Pay branch will be opened in the first half of 2012. The branch, formerly TM Kamfinsa, is currently being refurbished and upon completion will trade under the Pick ‘n’ Pay brand.
“As we refurbish the TM branches, some will be rebranded into PnP while others will retain the TM brand,” said the spokesperson.
TM will now be able to tap into the skills base of PnP through secondment of staff from TM to PnP and vice versa.
The exposure visits by TM staff to PnP outlets in the region will assist staff in acquiring new retail skills and assist in uplifting the store’s standards.
In addition, TM will leverage on the PnP logistical infrastructure, including the supply chain, warehousing and distribution with minimal investment.
TM will be able to ride on the back of PnP’s creditworthiness when dealing with SA suppliers. The extension of credit to TM would allow for adequate stocking of TM and PnP outlets in Zimbabwe.
It is also the intention of TM/PnP to offer franchising to the local operators who would like to use the PnP brand. The franchises would have access to the supply chain, skills and all the other advantages that come with being part of one of the biggest retailers in the region.
The franchise will create opportunities for the local businesses and when done properly, would lead to growth of the sole traders and creation of employment.
PnP will be exposed to the quality of local products and where these meet its standards, opportunities for local industry to start or increase their exports into the markets serviced by PnP.
“Zimbabwe is ideally located to service Mozambique, Zambia, Angola, Malawi and other Sadc countries where PnP is or will be expanding to.
“Discussions are already underway for the export of packed Tanganda tea for distribution throughout the PnP outlets,” said the spokesperson.