The Ohlthaver & List (O&L) Group, through WUM Properties (Pty) Ltd, will terminate its 27-year franchise agreement with Pick n Pay South Africa by 30 June 2025.
The O&L Group, through WUM Properties (Pty) Ltd trading as Pick n Pay Namibia, owns and operates 19 Pick n Pay branded retail stores in Namibia under a franchise agreement with Pick n Pay South Africa, which was entered into in 1997.
“We have formally notified Pick n Pay South Africa of our decision, and we are committed to a 12-month transition period effective 1 July 2024 until 30 June 2025, to ensure a smooth and orderly transition. During this time, we will focus on minimizing any disruptions to our employees, customers, and business partners. ‘Change is the only constant,’ and we believe this change will bring growth and innovation,” O&L Group Executive Chairman Sven Thieme said on Monday.
He said the company was exploring the best way forward to create consistent value-added retail experiences, ultimately benefiting all stakeholders.
“While we appreciate the long-standing partnership we have had with Pick n Pay South Africa, we are confident that this decision aligns with our commitment to being a more customer-centric and Namibian market-oriented business, staying true to our essence of being authentic, caring, and passionate. We look forward to embarking on this transformative journey,” Thieme said.
This comes as Pick n Pay Group is facing financial woes, having reported a 373% decrease in net profit, dropping from a R1.17 billion profit to a R3.2 billion net loss for the year that ended 25 February 2024.
As part of a turnaround and to restore profitability, the South African retail group will shut 35 stores in South Africa and convert another roughly 70 to the mass-market Boxer brand. In total, more than 100 stores will be converted or closed.
Founded in 1967, Pick n Pay South Africa is one of the largest and most established retail chains, which operates a range of store formats, including hypermarkets, supermarkets, and convenience stores in countries such as Namibia, Botswana, Zambia, and Zimbabwe.
The O&L Group is Namibia’s largest privately owned diversified group of companies, with interests in various sectors such as retail, fishing, dairy, engineering, property development, and hospitality, among others.
