Pick n Pay opens second store in Zambia

"The southern African region represents an increasingly attractive market for us," said Pick n Pay head of group enterprises, Dallas Langman."As disposable incomes continue to grow, the region's retail potential remains largely untapped and there is considerable opportunity for foreign investors who are willing to enter into constructive partnerships with local communities and government agencies."

"The incredible success of our first store in Lusaka and the enthusiasm with which it has been welcomed by our customers, has exceeded our expectations and has fully vindicated our decision to have four stores in this country by the beginning of next year," Langman continued. He added that the opening of the Ndola store is not only an act of commercial expansion but also an expression of confidence in Zambia's economic future.

Pick n Pay invested over US$3.5 million into the Ndola store which includes stock provision upon opening. The Ndola store is store roughly 800m² bigger than the first store and will include Zambia's first Pick n Pay clothing range.

Job creation and local sourcing

With the opening of its second Zambian store, Pick n Pay has employed over 300 Zambian citizens and by the end of the year, this number will have extended to over 600 employees. "In just a short space of time we have seen enormous growth from our employees and have already seen many of them be promoted in our Pick n Pay Zambian team," Langman added.

As part of its intention to support local farmers and suppliers while assisting economic growth in Zambia, Pick n Pay made a commitment to the Zambian government that 50% of its turnover would come from local suppliers. "We have exceeded this expectation, with 65% of turnover currently derived from Zambian suppliers," Langman said, noting that small scale farmers, in particular, had proved themselves more than capable of providing quiality foodstuffs.

Pick n Pay has a total of 230 local suppliers in Zambia - this includes agencies which supply imported products to the company's stores. From the total supplier list, 131 are local manufacturers. Of the total 10,100 grocery lines listed in its Zambian stores, 6,700 products are derived from local suppliers. The range includes canned vegetable products, coffee, legumes, an organic range of sauces as well as processed meats.

Pick n Pay's Fresh Produce division is currently developing local growers with the view of not only supplying Pick n Pay stores but for possible export to surrounding countries such as Zimbabwe and Botswana.