Africa declares a new standard for its communications profession
For too long, the PR landscape has had no shared standard for who practises in it or what responsibility they carry, founders say.
RETAIL STRATEGY
Namibian group to end its 27-year franchise agreement with Pick n Pay
By our African Marketing Confederation News Team | 2024
O&L group plans to strike out on its own in the tightly contested Namibian grocery retail sector once the Pick n Pay notice period ends.
The Namibian-based Ohlthaver & List Group (known as O&L), which operates 19 Pick n Pay franchised supermarkets in the country, is to end its long-standing operating agreement with Pick n Pay and start its own supermarket chain.
Photo: O&L group
O&L has given notice that it will terminate the 27-year agreement on 30 June 2025 following a 12-month transition period.
Pick n Pay is one of the largest and most established retail chains in South Africa and operates a range of store formats – including hypermarkets, supermarkets and convenience stores – catering to diverse customer needs. Besides SA and Namibia, it has a footprint in various other African countries.
However, Pick n Pay has been struggling financially and some underperforming company-owned stores will be closed or converted to either franchises or Boxer outlets. Boxer is a discount chain and the best-performing brand within the Pick n Pay group.
“While we appreciate the long-standing partnership we have had with Pick n Pay South Africa, we are confident that this decision aligns with our commitment to being a more customer-centric and Namibian market-oriented business, staying true to our essence of being authentic, caring and passionate,” says Sven Thieme, Executive Chairman of the O&L Group, in a statement posted on the group’s website.
No job losses due to changeover
According to reports in the Namibian media, there will be no job losses and employees will be absorbed into the new business.
“We’re taking the business back to us completely so that we have a sustainable business model, because I can guarantee you when we have the new business model in place, the future of the employees [is] guaranteed,” Thieme is quoted as saying in The Namibian newspaper.
“During this [12-month transition] time we will focus on minimising any disruption to our employees, customers and business partners. Change is the only constant, and we believe this change will bring growth and innovation.”
According to Trendtype, the emerging markets consultancy, Pick n Pay’s competitors, Shoprite and Spar, have expanded heavily into Namibia.
In partnership with Shell, Spar currently operates 65 stores. The Shoprite-owned OK franchise stores have also expanded by partnering with Puma Energy.
O&L’s attempts to introduce new store formats in recent years have not succeeded. In 2022 O&L opened a Pick n Pay Express in Swakopmund, and opened its second express store in Katutura. In March 2023 it opened a discount store called Supa Shop in Windhoek to compete against OK Stores and Choppies.
Researchers find a new way to enhance social media influencer messaging
By carefully selecting followers to engage with an influencer’s post, marketers can significantly increase the post’s spread.
Watchdog instructs auto brand to remove or amend TV ad campaign
SA’s Advertising Regulatory Board finds Kia advertisement could be offensive to people with certain health disorders.
The gap between AI’s efficiency promises and marketing reality
Global study finds AI is helping marketers produce more – but is not creating the time and creative space they expected.
Number of African megacities to increase from three to 17 by 2050
Urban Africa will double its footprint, adding the equivalent of more than 4,000 Manhattans or almost 400 Singapores, The Economist reports.
Nigeria’s Hyper City appoints CEO with strong Carrefour background
Luc Demez brings experience from Europe and African countries as the Carrefour brand looks to expand into Nigeria with a local partner.
Cracking the Africa Code: The functional path to market leadership
What makes brands successful in Africa? A summary of the award-winning paper presented at Esomar’s first conference in Africa.
‘What’s for dinner tonight, mom?’ Woolies’ AI chef may have the answer
Woolworths supermarket chain embraces an AI-powered chef as it leverages two decades of recipes to answer an age-old family question.
Demand for sportswear is sprinting ahead of the wider apparel market
Consumers are prioritising their wellness despite tighter wallets, meaning sportswear remains one of the most resilient areas of fashion.
Deadline looms for African marketing and supply chain awards
Nominations for the 2026 African Marketing Confederation and African Supply Chain Confederation awards close on 31 July.
Researchers study why negative brand news fails to deter some customers
Consumers may stick with troubled brands because their emotional attachment overrides the perceived risk, study finds.
