Pick n Pay opens Daily c-stores

In response to consumer research and the global trend for convenience, South Africa's Pick n Pay has opened its first small format convenience store in Fairland, Johannesburg.

Customers had stated that given the choice of small format stores, they would prefer to shop at a small Pick n Pay store, several times per week. In exchange for the convenience of the location they were happy to accept a smaller range of products than what they would find in a full sized supermarket.

“We are very excited about our new Pick n Pay Daily format. The convenience store format in South Africa is growing by approximately 14% annually, making it the fastest growth segment in the market, and we are poised to take advantage of that," says Pick n Pay CEO Nick Badminton. "International experience shows that small stores such as these can be a growth engine for our business.”

Globally, most major retail chains operate multi-channel formats, and this is a natural evolution for Pick n Pay. In South Africa, estimates put the value of the broader convenience retail sector at about € 1.7 billion.

Stores will be between 700m² and 1,000m² each and will carry about 6,500 product lines.  This compares with a standard size supermarket, which typically stocks around 15,000-20,000 SKUs or product lines. Similarly to its franchised supermarkets, Pick n Pay will franchise these convenience stores allowing the group to further expand black economic empowerment through enterprise development.

Depending on consumer acceptance, the company foresees a rapid rollout in the next three to five years.