Metcash franchise division to be sold to Shoprite

Metcash Trading Africa announced on Tuesday, 8 March 2011, that it had entered into an agreement with the Shoprite Group in terms of which the franchise division of Metcash would be sold to Shoprite.

By Zeenat Moorad

10 Mar 2011

The franchise division includes franchise arrangements with franchisees operating retail stores under registered trademark names such as Friendly, Seven Eleven and Price Club Discount Supermarket.

The sale, which is still subject to competition authority approval, will be integrated into the OK franchise division (OKFD), which currently has 273 members.

"This conforms to our strategy to rationalise our business and to focus on our core business. The transaction will also provide the group with additional resources to convert our existing Metro stores to the new and exciting hybrid stores as well as to expand the hybrid concept to other areas in SA," said Metcash CE Peter Dodson.

The store formats vary from convenience stores to supermarkets and discount supermarkets and are situated throughout the nine provinces of SA.

"The transaction will provide OKFD with a further platform to grow its business and franchisees exponentially, both in numbers and in turnover," said Shoprite deputy MD Carel Goosen.

OKFD franchises the convenience store brands OK Foods, OK Grocer, OK MiniMark, OK Value, wholesaler Megasave and the liquor store brand Enjoy in SA, Namibia and Botswana.

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za