“Game-changer” is being casually bandied about these days, but one cannot dispute that the partnership between the Gauteng Department of Economic Development (GDED) and Pick n Pay is touted as the real deal. The organisations have launched the first ever spaza-to-store conversion, Monageng Market in Diepkloof, Soweto.
This pilot project forms part of the GDED’s programme of economic revitalisation in townships and is regarded as the latest example of Pick n Pay’s commitment to inclusive growth in South Africa.
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 of Pick n Pay explained: “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.
“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 economic revitalisation of township communities.”
New partnership model
Pick n Pay and the GDED have, therefore, put together a new partnership model to assist the business. Based on Pick n Pay’s successful franchise model, the pilot partnership includes access to Pick n Pay’s:
- Extensive range of branded products and very competitive purchase pricing;
- Efficient systems for ordering and managing stock;
- Increasingly centralised, regular and timely distribution network;
- Retail services including data, airtime and ticketing;
- Participation in Smart Shopper, the loyalty scheme; and
- Marketing and operational advice.
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. Sachane owns the Pick n Pay family store in Protea Glen, Soweto, and is a successful entrepreneur in his own right.Share this article on Social Networks