Pick n Pay to launch new store format

The company said its research showed that Pick n Pay's core LSM 8-10 customers shop several times a week, and that the development of limited-offering and easy-to-shop-and-park stores in convenient locations would suit them best.

"The convenience store format in South Africa is growing by approximately 14% annually, making it the fastest growth segment in the market, and we are poised to take advantage of that.

"International experience shows that small stores such as these can be a growth engine for our business," said Pick n Pay CEO Nick Badminton.

The new convenience stores will be between 700m² and 1000m² each and will carry about 6500 product lines, compared with the standard size supermarket, which typically stocks around 15000 - 20000 product lines.

Customers unanimously agreed that given the choice of small format stores, they would prefer to shop at a small Pick n Pay store, and in exchange for this convenience, were happy to accept a smaller range of products than what they would find in a full sized supermarket, the group said.

Pick n Pay Daily stores will be franchised, allowing for the group to further expand black economic empowerment through enterprise development, as it has with franchised supermarkets.

The first convenient store will open in Fairland, Johannesburg on 23 September.

"Depending on consumer acceptance, the company foresees a rapid rollout in the next three to five years," the retailer said.

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