Johannesburg – Pick ‘n Pay Stores, South Africa’s largest grocery chain, may decide the future of its unprofitable Franklins stores in Australia this fiscal year, chairman Raymond Ackerman said.
“We will consider what we will do if don’t get near to, or break even this year,” Ackerman said on Tuesday in a telephone interview from the company’s headquarters in Cape Town.
“A lot will depend on franchising.”
Australian grocer Franklins has has not made a profit since Pick ‘n Pay bought the supermarket chain for R557 million in 2002. The company lost R92.7 million in the 12 months through February. The loss will shrink “significantly” this fiscal year after the unit established its distribution network, Pick ‘n Pay said on April 2.
Pick ‘n Pay, founded by Ackerman in 1967, has opened three Franklins franchise stores so far and plans to open between 20 and 30 more in the next two years, the chairman said. There are currently 75 Franklin stores that are owned and operated by Pick ‘n Pay.
“We have just launched franchising as the next big move forward for us to get extra turnover,” Ackerman said.
Unlike some South African companies, Pick ‘n Pay does not plan to sell any of its business to outside black investors, he said. Any sale will be to the company’s staff.
Pick ‘n Pay’s Australian Business Under Review
May 25, 2006 by Mark | 4 Comments
In Franchising Worldwide, News
Mr Ntando Mathenjwa on September 8th, 2007 at 6:30 pm
I am interested in franchising Pick n’ Pay what must I have to qualify
wahid hassim on September 14th, 2007 at 4:52 pm
what do we have to do to get the franchise in australia
wahid hassim on September 14th, 2007 at 4:55 pm
we are interested in franchise in perth austrila
Lungi Mathaba on January 17th, 2008 at 4:48 pm
I am interested on Pick n’ Pay franchise , I am staying in Durban SA , there are lot of shopping complex that are on progress around the city including location . I would love to own one.