Pick n Pay today expanded its innovative partnership programme with independent spaza store owners to the Western Cape. This programme, which modernises spaza stores to meet the needs of the customers and communities, is helping to build a new generation of modern retail entrepreneurs.

The programme’s first spaza to be opened in the Western Cape came with the launch of Nozinga Market in Gugulethu this morning.

This marks the launch of phase 2 of this unique partnership, combining the capability and systems of South Africa’s most trusted retailer with the spaza owners’ intimate knowledge of the needs of township customers to create a new shopping experience, grow township economies and boost employment.

Owners of converted stores in Gauteng, where the programme was piloted last year, have performed well and their customers have benefited from a significantly expanded range of quality products at competitive prices, close to where they live.

For Gugulethu businesswoman Pumla Rudah, who calls herself a “born entrepreneur who was always trading this and that”, the opening of Nozinga Market has turned a burning ambition to own her own business into reality.

Rudah left the corporate world in 2008 to follow her dream, trading pre-packed fruit in the informal market, before she turned to catering and then to helping other entrepreneurs to formalise their businesses.

Despite these strong entrepreneurial roots, she says the training she’s received from Pick n Pay in preparation for the store opening has been a “great learning curve”, giving her new insights into owning and running a sustainable business.

She has taken on 15 permanent staff, most of them from Gugulethu and Langa, and a share of her profits will go to the previous owners of the store, well-known traders in the area since the 1960s.

Pick n Pay has worked with its suppliers to upgrade the store with new refrigeration and IT systems and it will stock 1 300 lines of edible and non-edible groceries, fresh produce and perishables. In addition to having a liquor licence, once approved, Nozinga Market will offer a full Value Added Service range, including money transfer, ticketing, airtime and data, bill payments, lottery tickets and the sale of prepaid electricity.

Customers will be able to benefit from the Pick n Pay Smart Shopper loyalty programme – voted South Africa’s favourite loyalty programme for four years in a row – and earn and redeem Smart Shopper points at the store.

This collaborative effort between Pick n Pay, the Old Mutual Foundation, Masisizane Fund, the Western Cape Department of Economic Development and Tourism and the City of Cape Town follows the success of the same model in Gauteng.

Pick n Pay deputy CEO Richard van Rensburg said: “We are delighted to be opening our first market store in the Western Cape. This very successful project is about creating the business leaders of the future. The success of the project lies in helping independent entrepreneurs stay independent, but even more successful with a range of trading and financial assistance.

“Successful township businesses help the broader community by providing great services, creating jobs and building vital skills in technology, customer service, and more traditional retail areas such as learning to be butchers and bakers. We are helping independent entrepreneurs to make their businesses successful and play a greater role in growing our economy.”

Alan Winde, Western Cape Minister of Economic Opportunities, said his department was “delighted to partner with Pick n Pay and local entrepreneurs in this programme”.

“This is the kind of public-private collaboration we need to stimulate economies across the Western Cape, grow small businesses and create jobs.

“I am particularly encouraged by the support we are providing to new, independent store owners to enhance their business skills. This partnership shows the opportunities we can unlock when big business and emerging entrepreneurs work together. It’s an exciting model that holds a lot of promise for the future. I commend Pick n Pay for sharing in our commitment to support emerging entrepreneurs. I would like see more corporates following their lead.”

Millicent Maroga, Head of the Old Mutual Foundation, said: “We’ve worked closely with all involved in this project by offering both financial and non-financial support. We share a common goal – to enable entrepreneurs to grow their stores into sustainable businesses. This is a very important partnership, providing funding, mentorship and training to entrepreneurs who are being given every opportunity to be the best they can be.

Tumi Sefolo, Investment Head: Franchise and Wholesale Funding, Masisizane Fund, added: “We are excited at the launch of the first spaza-to-market store conversion in the Western Cape. The market stores in Gauteng that were opened in 2016 have shown us how working with partners can produce impressive results. The addition of the Brimstone Legacy Fund to this programme as an additional funding partner is a great value-add to the store owners. This new store joins the community of independent entrepreneurs, owning and directing the destiny of their businesses with both support and mentoring.”

For her part, Rudah admitted to “anxious excitement” as the big day arrived, adding: “The butterflies are growing into grasshoppers, but thanks to my partners, my goals have been validated and I can finally say that what I imagined all along is now real.”

ENDS

www.picknpay.co.za

Issued by Corporate Image on behalf of Pick n Pay


NOTES TO EDITORS

  • The spaza conversion programme was piloted in 2016 in partnership with the Gauteng Department of Economic Development. Seven stores are now open in Gauteng.
  • The target for Phase 2 of the programme is 11 stores in Gauteng and 4 in Cape Town.
  • The store owners remain fully independent and can source products other than those offered by Pick n Pay. Pick n Pay sets minimum standards of operation, range, and pricing to ensure the model is successful.
  • Extensive mentorship is provided by Pick n Pay, as well as training which comprises both in-store and classroom training. This includes store systems and point of sale (including banking and cash management), finance management, customer service and entrepreneurial development.