No job losses as retail giants go corporate
Pick n Pay has transitioned its local stores from a franchise model to a corporate-owned structure, with the move coming into effect on Monday, 16 June.
The South African based group received Competition and Consumer Authority’s (CCA) approval to go ahead with the acquisition of NTS Holdings, a retail franchisor that has been operating 13 franchise Pick n Pay branded stores in Botswana since 2009.
A franchise is a business model where an independent owner operates a branch of an established business by paying fees and adhering to the franchisor’s rules.
A corporation, on the other hand, is a business owned by shareholders, where the company itself owns and manages all its locations and operations.
According to the Media Manager from Corporate Image in South Africa, Corlette Bekker Walbridge, the Pick n Pay Group will become the sole shareholder of Pick n Pay Botswana.
Walbridge told Voice Money that of the 13 stores, 12 will become Pick n Pay corporate stores while one will remain an independently run franchised store.
“The system changes took place this past weekend, and all operational aspects of the transition are expected to be completed in the next couple of weeks,” she revealed.
The Media Manager said the move has enabled them to recapitalise the Botswana business enabling the stores to be revitalised in line with their brand standards, including refurbishing facilities and ensuring consistent product availability and quality.
“The buy-out was based on collaborative engagements and mutually agreed decisions,” added Walbridge.
She further said under a new corporate structure, there will be stronger operational oversight, direct investment in store infrastructure, and a faster response to market needs.
“This model is especially well-suited to the scale and demands of the Botswana retail environment, enabling better customer experience, streamlined product sourcing, and broader strategic planning,” continued Walbridge.
She said they’re excited to begin refurbishing the stores’ outdated features to align with Pick n Pay South Africa’s specifications, which include a strong focus on enhanced product ranges and a reinvigorated fresh produce section for local customers.
“We are also strengthening our local supplier and farmer partnerships, particularly in meat and fresh produce to ensure more consistent meat and vegetable produce and quality for our stores, reinforcing our commitment to the Botswana economy,” she said.
Walbridge assured Voice Money the transition will not affect their current staff in any way.
“There will be no job losses. We have guaranteed 100 percent job security for all existing staff. We are proud to currently employ around 1, 200 local staff, and all of our stores are 100 percent locally operated,” she said, adding a few stores were temporarily closed on 15 and 16 June for scheduled technical and systems upgrades, but were fully operational by Tuesday.
She said the Pick n Pay Group is committed to improving their stores and offering better service to their customers in Botswana.
Walbridge said they will commence with a refurbished store campaign, starting with the River-Walk outlet in Gaborone which will be upgraded to Pick n Pay store specifications.
“Once completed, the store will feature an upgraded fresh food offering, expanded hot foods section, new butchery, and the addition of a liquor department. It will also boast an improved range of groceries, including a focus on cheese and a wider range of chocolate, biscuits and sweets for customer,” she said.
