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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.

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Rozanne
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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.