Pick n Pay Launch Pilot Spaza-Store Model

Pick n Pay Launch Pilot Spaza-Store Model


The Monageng Market store, which is owned and run by Solly Legae and his family, has traded in Diepkloof since 1972. In recent years the trading environment has become more difficult, with new entrants competing for the local market.

Chris Reed, Group Executive for Franchise at Pick n Pay explains: “Many independent township traders are experiencing tough times as the economy tightens and competition becomes more intense. When we talk to spaza owners about the challenges, and how we might help, they frequently identify better access to quality products at good prices, a reliable distribution system, good business management systems, and business advice and mentorship as priority areas for them.

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“Pick n Pay’s successful franchise operation has been a strong base for many years for developing new entrepreneurs and building new business leaders, including young black entrepreneurs.

“We are excited about adapting strong elements of our franchise model to support independent SMMEs and make a contribution to the the economic revitalisation of township communities”.

In managing the revitalised store, Solly Legae will also benefit from tailored business mentoring and advice from Pick n Pay franchisee and local entrepreneur Bonnie Sachane. Bonnie owns the Pick n Pay family store in Protea Glen, Soweto, and is a successful entrepreneur in his own right.

With the help of some of its suppliers, Pick n Pay has worked with Solly on totally refurbishing his store, which now boasts new refrigeration and IT systems. Although the store remains small, it will have up to 800 lines of edible and non-edible groceries as well as fresh produce and perishables.

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The store will also offer a full Value Added Service range, including ticketing, airtime and data, bill payments and the sale of prepaid electricity, giving Solly new sources of revenue. The store will be linked to the Smart Shopper system so shoppers will be able to earn Smart Shopper points.

GG van Rooyen
GG van Rooyen is the deputy editor for Entrepreneur Magazine South Africa. Follow him on Twitter.