S.Africa: LIBERALS: End of an era for Pick n Pay

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[This enormous supermarket chain was founded by the Liberal Ackerman. Jan]

The Ohlthaver & List (O&L) Group is finalising the termination of its franchise agreement with Pick n Pay in Namibia, with the rebranding of all its Pick n Pay stores in the country by July 2025.

The group announced it was pulling out of Pick n Pay Namibia in 2024, ending a franchise agreement with the South African retail giant that spanned 27 years.

The full termination of the agreement is expected by the end of June 2025, after which all 19 former Pick n Pay stores will become Model stores.

O&L said that its retail journey began with Model in 1965, and now, 60 years later, it is returning to the brand.

The O&L Group was founded in 1919 and is Namibia’s largest privately held business enterprise.

According to O&L, Pick n Pay opened its first store through the group in 1997 at the Wernhil Park shopping mall, which formed the flagship of all stores currently in Namibia.

The store was originally a Model store, which opened at the mall in 1990.

In July 2024, the group—operating as Pick n Pay Namibia—said it would terminate the franchise agreement with Pick n Pay South Africa by 30 June 2025, committing to a 12-month transition period.

“While we appreciate the long-standing partnership we have had with Pick n Pay South Africa, we are confident that this decision aligns with our commitment to being a more customer-centric and Namibian market-oriented business,” it said at the time.

The termination of the franchise agreement came around the same time that Pick n Pay reported a significant R3.2 billion loss for the financial year ended 29 February 2024 (FY24).

The group subsequently initiated a host of changes, including a new CEO, Sean Summers, an oversubscribed rights offer and the separate listing of Boxer stores in the JSE.

The retailer also shifted its store strategy, looking to cut around 100 loss-making stores in the country and focusing on renewing and revitalising the Pick n Pay brand and operations.

The shift also brought about another significant ending for the group: the ownership structure officially changed with the Ackerman Family giving up control of the retailer after 57 years at the helm.

In its interim results for the six months ending August 2024, Pick n Pay acknowledged the termination of its long-standing franchise agreement with O&L in Namibia, but said it would continue to explore opportunities for the brand in the country.

At the end of August 2024, it listed 36 stores in Namibia. O&L owned 19 Pick n Pay franchise stores in the country.

Source: https://businesstech.co.za/news/business/817431/end-of-an-era-for-pick-n-pay-2/