adminNoble Ncube
LEADING supermarket chain store, TM Pick n Pay has expressed confidence in the future of the Zimbabwean economy and plans to expand its investment in the country’s retail sector next year.
TM Pick n Pay, a partnership between South Africa’s second-largest supermarket chain store and Johannesburg listed firm, Pick n Pay and Zimbabwe’s TM Supermarket, owned by Meikles Limited, came into effect in 2013.
The massive investment made by Pick n Pay estimated to be around $20 million is an indication that the giant retailer was positive of gaining market traction in a Zimbabwean economy where retailers face great competition from a booming informal sector.
TM Pick n Pay has 55 branches in the country and intends to add another five next year. Out of the 55 stores, 12 are Pick n Pay while 43 are TM.
The retail shop’s managing director, Mr Dharmalingum Dass, said the massive capital injection went towards refurbishments and face-lifting of TM stores to meet international standards.
Last week the company opened a new shop at Bradfield suburb in Bulawayo, which has been under renovations for close to six months at an estimated cost of about $1 million.
“Over the years we have invested more than $20 million in Zimbabwe. Right now we have 55 branches and nine of these are in Bulawayo. We are opening five more branches next year,” he said.
Pick n Pay came into the country when local manufacturers were struggling to survive and could not meet demands in the retail sector.
“Zimbabwe’s retail sector is growing. We strongly support the local retail sector and we get almost 90 percent of our products locally. In the fruit and vegetables department there is only one or two goods that are imported, otherwise the rest are produced locally. We also work closely with Buy Zimbabwe and we want to bring back customer confidence in local products,” Mr Dass said.
TM Pick n Pay stocks more than 40 000 South African-manufactured products that range from groceries to electrical appliances in all their shops in Zimbabwe.
Buy Zimbabwe chief economist Mr Kipson Gundani said there was a tendency by wholesalers of putting high margins on locally manufactured products, a situation which culminates in retailers’ mark ups making the goods expensive than foreign ones.
“We are pro-sufficient as a country, what TM Pick n Pay is doing is relatively okay. From our perspective ratio of 70 to 30 is still okay. We can have more of our local products and have only 30 percent from imports.
“It is a question of quality over quantity. It is better to have quality products than to have more with less quality. The value of a product is quality not quantity,” said Mr Gundani.
The Buy Zimbabwe campaign promotes the selling of Zimbabwean products ahead of imports. It is a competitiveness and empowerment driver whose mandate is to unlock the country’s potential through a structured aggressive support of the production and consumption of local goods and services.
Confederation of Zimbabwe Industries president Mr Busisa Moyo commended the improved relations between Pick n Pay and local wholesalers and manufacturers adding that local products be given more shelf space in preference to imported goods.
“We welcome the expansion by Pick n Pay because it has created employment and supported our initiative to industrialise. In the last year, they have improved their relations with local suppliers of various products. They are supporting the local retail sector,” Mr Moyo said.
He said the local manufacturing industry was slowly finding its feet stating that support from retailers through prioritising the purchasing of locally produced products was of paramount of importance for manufacturers to improve their productivity and viability.
“The retail sector should be at the fore front to support local supplies. We would like to see more products from local manufacturers. We cannot have 100 percent imported groceries in our local shops,” he said.
Bongani Ndlovu
Online Reporter