African Retail
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African Retail
Retail news from around the continent curated by a business historian with an eye on the longue durée
Curated by Dawn Nell
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Pick n Pay completes Franklins sale

Pick n Pay completes Franklins sale | African Retail | Scoop.it

SA’s second-largest supermarket chain Pick n Pay says it has completed the sale of its Australian chain of Franklins supermarkets to Metcash.
The completion of the sale follows the decision by the Federal Court of Australia to dismiss an application by the Australian competition regulator, the Australian Competition and Consumer Commission (ACCC), for an interim injunction to prevent completion of the sale before the ACCC’s appeal could be heard and decided.

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WOOLWORTHS plans joint venture in Nigeria

WOOLWORTHS plans joint venture in Nigeria | African Retail | Scoop.it

Woolworths said it plans to enter into partnership with some Nigerian investors in its bid to invest in Nigeria. It said it will open 16 new stores in other Africa countries this fiscal year as part of the group’s plan to expand further on the fast-growing continent. Woolworths, which sells high-end food and some clothing, already operates 44 stores in 10 countries that include Botswana and Kenya.

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Uchumi plans South Sudan market entry

Uchumi plans South Sudan market entry | African Retail | Scoop.it

Uchumi Supermarkets is eyeing entry into the South Sudan and new expansions in Uganda as part of the supermarket retailer’s expansion drive to boost growth.

Chief executive Jonathan Ciano said on Tuesday, that Uchumi would open a branch in Juba, which is likely to remain the newly independent State’s commercial capital “for at least a decade” even as plans are under way to relocate the administrative town to Ramciel.

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Will Walmart’s acquisition of 51% of Massmart benefit ordinary South Africans?

Will Walmart’s acquisition of 51% of Massmart benefit ordinary South Africans? | African Retail | Scoop.it

For those who have been sleeping under a rock over the past six months, or been basking in the sun on a warmer continent to get away from the Highveld winter, American giant Walmart has acquired 51% of South African retailer Massmart Holdings. The world’s largest retailer definitely showed confidence in South Africa with its R16,5bn takeover bid and clearly was looking for more emerging market exposure and growth from the African continent.

The deal was finalised in June 2011 after much deliberation by the Competition Commission and vocal intervention by the South African labour unions. The Competition Tribunal stated that there were no competition concerns, but did raise some public interest issues, especially around job losses and local procurement.

The important question on the minds of most South Africans is: What does this acquisition mean for me, the South African consumer? Will we indeed benefit or will quality deteriorate?

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Kenyan firm joins battle for Africa's super market

Kenyan firm joins battle for Africa's super market | African Retail | Scoop.it

Shoprite hasn’t come across much competition as it has established itself as Africa’s largest retail grocer and its South African rivals only just catching up. But they might just meet their match in Kenya’s Nakumatt group, which has announced its African ambitions - just as Shoprite finds itself distracted by the Walmart threat.

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Walmart-Massmart deal approved with conditions

Walmart-Massmart deal approved with conditions | African Retail | Scoop.it
The Competition Tribunal on Tuesday approved the merger between Walmart and South African retailer Massmart Holdings (MSM) subject to conditions.

"Walmart does not compete with Massmart in South Africa and its only presence in the country is a small procurement arm that sources local products for its stores globally. The merging parties contend that the merger will indeed be good for competition by bringing lower prices and additional choice to South African consumers," the tribunal said.

"We accept that this is a likely outcome of the merger based on Walmart's history in bringing about lower prices. However the extent of this consumer benefit is by no means clear -- Walmart itself has not been able to put a number to this claim, only that it is likely," it added.
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Massmart says making progress on Nigeria expansion plans

Massmart says making progress on Nigeria expansion plans | African Retail | Scoop.it
JOHANNESBURG, May 31 (Reuters) - Massmart is making
good progress at identifying sites for potential expansion in
Nigeria, the chief executive of the South African retailer said
on Tuesday.
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Woolworths and Uchumi Report Both Report Growth

Woolworths and Uchumi Report Both Report Growth | African Retail | Scoop.it
South Africa’s Woolworths chain and Kenya's Uchumi Supermarkets have both reported strong double-digit growth in first-half profits, helped by cost controls.

For the six months to end-December, Woolworths said that adjusted headline earnings per share jumped up 26% to 100.8 cents a share, as the company benefitted from lower interest rates and increased consumer spending. It added that sales were up 10% for the period, and said sales growth in second half is expected to be on the same level.

The company said it is considering opportunities in Nigeria, Mauritius and Angola as it looks to grow outside the home market. CEO Ian Moir added, "We are committed to Africa. In 10 years’ time, Africa will become a much more important part of our business. It’s not a two-to-five-year game.”
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South Africa: Cosatu vows to take on Walmart:

South Africa: Cosatu vows to take on Walmart: | African Retail | Scoop.it
Cosatu was planning a massive campaign against the proposed acquisition of 51% control of Massmart by US retail giant Walmart Stores, the trade union's general secretary said on Friday.

“The campaign (against the acquisition) must be about our life or death,” said Cosatu general secretary Zwelinzima Vavi.

He was addressing delegates attending a two-day national bargaining conference for the SA Clothing and Textile Workers Union (Sactwu) in Durban.
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South Africa: Torrid time awaits Consumers

South Africa: Torrid time awaits Consumers | African Retail | Scoop.it
Consumers are in for a bumpy ride with food price inflation on the rise and expected to hit the 5 percent mark soon, sparked by the global food shortage, chaotic weather and higher fuel and electricity prices.

This is according to economists and the findings of the latest National Agricultural Marketing Council’s quarterly food price monitor, which tracks the price of a basket of 65 food items in urban areas and 39 items in rural areas
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Kenya: Nakumatt's MD Atul Shah Speaks

Nakumatt's MD Atul Shah is interviewed by ntvkenya about the future of retail in the region.
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State intervenes in Massmart merger

MASSMART ’s reluctance to make tangible commitments regarding issues of public interest including procurement and food security had forced the government to intervene in the proceedings of the merger with Walmart, the Department of Economic Development said yesterday.

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Doug McMillon - Why Walmart is Interested in Massmart

Doug McMillon - Why Walmart is Interested in Massmart | African Retail | Scoop.it
Walmart International CEO Doug McMillon discusses who Walmart is and why they are interested in the Sub-Saharan Africa retailer Massmart.
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Cosatu: We'll march on houses of Ackerman and Zille

Cosatu: We'll march on houses of Ackerman and Zille | African Retail | Scoop.it

COSATU president says unions to oppose Pick 'n Pay retrenchments and Walmart entry into SA.

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Uchumi Supermarkets of Kenya Sees Sales Growing on Expansion

Uchumi Supermarkets of Kenya Sees Sales Growing on Expansion | African Retail | Scoop.it

Uchumi Supermarkets Ltd., Kenya’s only publicly traded retailer, said it expects revenue to rise 34 percent in the current financial year as it expands in East Africa.
Sales in the year through June 2012 may increase to 16.1 billion shillings ($170 million) from 12 billion shillings a year earlier, Managing Director Jonathan Ciano told reporters today in the capital, Nairobi.
Uchumi, which opened its first store in Dar es Salaam, Tanzania’s commercial capital, last month and a second one in Uganda, plans to open another seven outlets in the region, three in Uganda and four in Kenya, he said.

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Shoprite workers to down tools in Lesotho

Shoprite workers to down tools in Lesotho | African Retail | Scoop.it

MASERU- Shoprite and Hungry Lion workers are set to go on a seven-day strike beginning September 26 after wage talks hit a deadlock last Friday.

The workers are claiming the retail giant is paying a minimum wage of M610 per month—not the ‘legal’ M1283—with a National Union of Commercial, Catering and Allied Workers official telling The People’s Paper on Saturday last-ditch efforts to avert the industrial action had yielded no fruits.

Tšeliso Ramochela— the NUCCAW secretary general—told The People’s Paper the strike would run from September 26-October 2, while the union continues with its efforts to get a better deal for its members. Most Shoprite workers are members of the union, according to Ramochela.

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Cosatu Reacts to Tesco-Pick n Pay Rumours

Cosatu Reacts to Tesco-Pick n Pay Rumours | African Retail | Scoop.it

Unions are on heightened alert after rumours surfaced that UK retailer Tesco was in talks to acquire Pick n Pay.  Despite denials, the SA Commercial Catering and Allied Workers' Union called for a boycott of Pick n Pay and a march to the house of founder Raymond Ackerman.

Cosatu said that the union had confirmed that Pick nPay was in talks with Tesco .

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Wal-Mart cleared to buy Massmart

Wal-Mart cleared to buy Massmart | African Retail | Scoop.it
South African competition authorities have given the go-ahead to US store giant Wal-Mart's $2.4bn (£1.5bn) bid for local retailer Massmart.

It has imposed conditions on the bid, such as a ban on firing workers in the first two years.

It has also said that Wal-Mart must have a programme for developing local suppliers.

Wal-Mart's bid for 51% of Massmart is seen as a test case for major foreign investment in South Africa.

The world's biggest retailer had threatened to withdraw from the deal if targets were placed on buying from local suppliers.

"We're pleased that the competition authorities have recognised the benefits that our investment in Massmart can deliver," Wal-Mart International chief executive Doug McMillon said.
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Uchumi back at Nairobi Stock Exchange, opens at Sh14.50

Uchumi back at Nairobi Stock Exchange, opens at Sh14.50 | African Retail | Scoop.it
About 12,000 Uchumi Supermarkets shareholders can finally unlock the value of their shares after the retail chain made a comeback at the Nairobi Stock Exchange (NSE).

Exactly five years after it was put under receivership following years of mismanagement and loss making that resulted in suspension from the market, Uchumi’s 265,426,614 shares started trading again at the NSE Tuesday opening at an offer price of Sh14.50.
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Wal-Mart: In or out of Africa?

Wal-Mart: In or out of Africa? | African Retail | Scoop.it
Wal-Mart's obsession with selling the lowest-priced goods would shift purchase orders away from South African-produced goods to those produced more cheaply in China, argue South Africa's powerful trade unions. According to a government witness at the Com­petition Tribunal, shifting just 1 percent of Massmart's product line from local goods to imported goods would cost South Africa 4,000 jobs, a statistic Wal-Mart and Mass­mart vigorously dispute.
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East Africa: State becomes largest single Uchumi investor

East Africa: State becomes largest single Uchumi investor | African Retail | Scoop.it
The government has become the single largest investor in Uchumi Supermarkets with a 13.1 per cent stake after it converted its debt to shares in a transaction that has it along with other creditors acquire the equity at a 30 per cent discount.

The retail chain, on Thursday revealed that the capital markets regulator has given it the nod to offer 86 million shares to the government, suppliers and shareholders for it to convert a Sh860 million debt to equity.

It means that the share was priced at Sh10 each, which is below the Sh14.50 its was trading at the Nairobi Stock Exchange (NSE) before its suspension from trading in mid-2006 and 2009 valuation by KPMG that placed a share of the firm at Sh12.
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South Africa: Wal-Mart's Massmart deal faces government scrutiny

South Africa: Wal-Mart's Massmart deal faces government scrutiny | African Retail | Scoop.it
Wal-Mart Stores' move to buy a 51% stake in South African retailer Massmart Holdings is facing criticism from the country's government. The US$2.3bn deal was approved last month by South Africa's Competition Commission on competition grounds, although the watchdog did note the transaction had raised a number of "public interest concerns".

The Commission passed its findings along to South Africa's Competition Tribunal, which will reach a final decision on a deal. In submissions to the tribunal, three government departments have now criticised the retailers for their unwillingness to make any binding commitments around the public interest concerns.

The Economic Development Department (EDD), Department of Trade and Industry and the Department of Agriculture, Forestry and Fisheries have outlined concerns about the impact of the merger on local procurement, food security and broad-based black economic empowerment.
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Walmart Enters Africa

Walmart Enters Africa | African Retail | Scoop.it
Walmart said it will honour existing agreements between MassMart and South African unions. However, unions have expressed fears that “Walmartisation” will now hit Africa. South African union COSATU – which has substantial power through an alliance with the ruling African National Congress - has threatened the “mother of all boycotts”. The South African Commercial, Catering and Allied Workers' Union (SACCAWU) is pushing for public protests and demonstrations after claiming the commission did not seriously consider submissions from labour organizations and civil society.
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Uchumi Coming Back Well, Set To Enter Tanzania

Uchumi Coming Back Well, Set To Enter Tanzania | African Retail | Scoop.it
Kenya's second biggest food retailer, Uchumi , appears to be coming back strongly as it continues to re-emerge from administration, which it came out of in early 2010. In its first half to December 2010, Uchumi's number of customers increased by 4.5% year-on-year.
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Zimbabwe: Government Blocks Pick n Pay's Purchase in TM Supermarkets

Zimbabwe: Government Blocks Pick n Pay's Purchase in TM Supermarkets | African Retail | Scoop.it
The Zimbabwe government has blocked the purchase of a 24% stake in TM Supermarkets by South Africa's retail group Pick n Pay due to an indigenisation law requiring foreign and white-owned firms to relinquish control to black Zimbabweans.

Pick n Pay currently holds a 25% stake in Zimbabwe's largest supermarket chain in which it announced last November that it had bought additional shares to put its combined stake in TM Supermarkets to 49% under a recapitalisation exercise meant to make TM Supermarkets competitive
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