South African retail giant Pick n Pay will invest over R5 billion ($412,4 million) in the next two years as part of its African expansion programme, including in Zimbabwe aimed at further strengthening the balance sheet and financial performance of the group.
Pick n Pay, which holds 49 percent in TM Supermarkets, said in its full-year results for the year ended March 2015 released on Tuesday that the African expansion will target Zimbabwe and Zambia while it will make an entrance into Ghana.
The retail chain however did not say how much of the R5 billion was specifically targeted for each country.
It said its Zimbabwe operations were part of other outside South Africa operations which contributed a combined profit jump of 34,6 percent compared to last year.
During the year, the group refurbished four TM Supermarkets and re-branded three stores to Pick n Pay in Zimbabwe.
“The opening of two new stores in Zimbabwe and the closure of one store during the year, brings the total number of TM Supermarkets to 53, eight of which trade strongly under the Pick n Pay banner,” the group said.
The group is one of the largest in Southern Africa with a portfolio comprising 1,189 stores and 2.2 million square metres, excluding the investment in TM Supermarkets in Zimbabwe. Pick n Pay also operates in Namibia.
It said during the year, it had opened 127 stores across all Pick n Pay and Boxer formats, including 36 new supermarkets, and closed 14 underperforming stores.