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Group chief executive Mr Tawanda Nyambirai confirmed that the first supermarket and a fast foods outlet would open in Harare next month along Fourth Street (former Johnson & Fletcher premises).
“Yes, it’s true,” he said. ” We are launching the new business in February. We shall use the Rufaro Marketing properties for this business, and that is why we signed long leases (12 years) with Rufaro Marketing.
“Thus, some of the outlets would be used as supermarkets and others as fast foods outlets”.
Existing group facilities in Harare, which include Radio Limited, Woolworths, the former Amato Stores building are already being renovated to accommodate a supermarket or a fast foods outlet.
Group finance director Mr George Nyashanu added that the group expected to invest US$1 million on a stocking plan, US$1 million for equipment and about US$500 000 for refurbishment and power upgrades.
This US$2,5 million has been set aside only for the first supermarket and food outlet along Fourth Street in Harare.
“For the Rufaro Marketing projects, the costs vary, depending on the size of the outlet and the other ancillary product offerings that we will combine with each outlet,” he said.
“Our plan is to roll out gradually after research and demand assessments. This will also entail a capital raising exercise to match the demand for capital.”
Before taking over the 25 Rufaro Marketing outlets, TN had 24 banking malls throughout Zimbabwe.
Mr Nyambirai said the supermarkets would be expanded to other cities during the year. Harare will have five food outlets while the number of supermarkets would be determined by performance of the business.
Retail is one of the most expanding sectors in Zimbabwe following the dollarisation of the economy in 2009.
TN enters the market at a time when TM Supermarkets is being recapitalised and poised to regain its market share.
Some of the TM Supermarkets would be branded Pick ‘n’ Pay following their US$21 million recapitalisation deal.
OK Zimbabwe is also fully capitalised and the company has been stocking.
The big names in the sector include Spar and Food World.
Analysts yesterday said the concept of supermarkets worked better to utilise the Rufaro Marketing facilities that are mainly located in high-density suburbs.
“Selling furniture in those locations was going to be very difficult but supermarkets are ideal,” said one analyst.
However, the analysts said margins in the retail sector were depressed, which meant business might negatively affect overall group performance.
TN Financial Holdings operates Zimbabwe’s sole virtual bank and four other subsidiaries – TN Medical Benefit Fund, TN Financial Advisory Services, TN Asset Management and TN Harlequin.
TN Harlequin, the group’s furniture division born out of Tedco Holdings, has managed to establish its footprint in that territory.
Recently, Mr Nyambirai acquired a 38 percent stake in another furniture group, Pelhams Limited, a transaction that is likely going to have a positive impact on group performance.
Online Reporter