Retailers News Africa

Subscribe

Advertise your job ad
    Search jobs

    Woolworths buys back African franchises

    Woolworths said on Tuesday, 5 November, that it had signed agreements to purchase its franchise businesses in Botswana‚ Namibia‚ Swaziland and Ghana.
    Woolworths has bought back some of its African franchises. Image:
    Woolworths has bought back some of its African franchises. Image:Wernhil Park Mall

    This marks the end of franchise stores in African countries for the retailer.

    Woolworths‚ like other retailers‚ is expanding its footprint on the continent as urbanisation and rising affluence fuel a boom in fast-growing cities‚ with a middle class clamouring for high-quality goods.

    Focused on company stores or joint ventures

    Woolworths says its investments in African countries in future will be focused on company stores or joint ventures. The group has a presence in 12 African countries‚ excluding SA.

    Woolworths' chief executive Ian Moir said the transaction gives the group a business of scale‚ lifts profitability of its African operations and positions it for growth in these countries. The 33 stores in the countries are predominantly clothing and general merchandise but Botswana has a significant food business.

    The addition of the stores brings the combined retail turnover in African countries close to R1bn a year.

    The franchise stores were previously managed by Ish Handa‚ who will become a non-executive director of Woolworths in both Botswana and Namibia once the deal is concluded. It is subject to competition commission approval in Namibia‚ Botswana and Swaziland.

    Planning 82 stores in Africa

    Woolworths says it plans to have about 82 stores in Africa outside of its home market by 2016. The group's retail operations and international director Paula Disberry this week said that the economic and socio-demographic trends in Africa were working in favour of Woolworths' positioning.

    "The growth in sub-Saharan Africa has been over 5% for the last three years‚" she said at the World Retail Congress Africa in Sandton. The group has launched its WRewards loyalty programme to the Zambian and Mauritian markets‚ where 45% of its sales can be tracked.

    "We have introduced store cards and a credit offering in Kenya and we will roll out our store card to all our African countries‚" Disberry said.

    Source: I-Net Bridge

    For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

    We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

    Go to: http://www.inet.co.za
    Let's do Biz