South African retail giant Pick n Pay Group Limited has written down its investment in TM Supermarkets (Pvt) Limited to zero, citing ongoing losses, reported <a href="https://www.theindependent.co.zw/business-digest/article/200034372/pick-n-pay-writes-off-tm-investment">The Zimbabwe Independent</a>.
Pick n Pay holds a 49% stake in TM through a partnership with Zimbabwean conglomerate Meikles Limited.
The decision is attributed to Zimbabwe’s challenging economic environment, characterised by hyperinflation, volatile currency rates, and increasing economic instability.
Formal retail operations in Zimbabwe are being threatened by declining disposable incomes which are forcing consumers to turn to cheaper options in the informal sector or smuggled goods.
In its half-year report for the period ending August 25, 2024, Pick n Pay reported a 6.9% year-on-year drop in sales across its African markets outside South Africa, totalling R1.9 billion (US$107.1 million).
While operations in Zambia have continued to perform well despite local disruptions, the deteriorating conditions in Zimbabwe led to the impairment of the TM investment to zero in early 2024. Pick n Pay’s half-year report reads in part:
<blockquote>
The group’s operations in Zambia delivered another strong trade performance, notwithstanding severe operational disruption from power outages in the region and the impact of local currency devaluation.
As a consequence of the deteriorating economic conditions in Zimbabwe, the group impaired its investment in its associate TM Supermarkets to a book value of zero in February 2024 and no further losses have been recognised.
The group is actively working to optimise its footprint outside of South Africa, including exiting Nigeria, restructuring the Botswana franchise into a company-owned model, and pursuing new growth opportunities in Namibia, following the termination of the existing master franchise agreement in that country.
</blockquote>
Pick n Pay also operates in eSwatini and Lesotho. In Zimbabwe, Pick n Pay and TM jointly operate 74 outlets across the country.
In light of TM’s ongoing losses, Pick n Pay has expressed limited optimism for future returns, indicating that dividends are unlikely and any potential profits would be minimal.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Pick n Pay, a big store from South Africa, lost all the money they put into TM Supermarkets in Zimbabwe. They blame the bad economy in Zimbabwe for the loss. People there don't have much money, so they can't shop at big stores like TM. Pick n Pay also had less sales in other African countries. They say they won't make money in Zimbabwe anytime soon. They are looking at other countries to make money instead. It's not looking good for Pick n Pay in Zimbabwe.

Pick n Pay Writes Off TM Supermarkets Investment To Zero

The founder of Pick n Pay retail company, Raymond Ackerman, has died at the age of 92, the company has announced. In a statement released on X (formerly Twitter), the company confirmed his death. In a statement seen by Pindula News, the company said Raymond Ackerman was a visionary entrepreneur, a humanitarian, and a remarkable South African. Read the statement:
<blockquote>
With profound sadness we announce that Pick n Pay founder Raymond Ackerman has passed away. A visionary entrepreneur, humanitarian and a great South African. Our country has lost a brilliant patriot who always saw a positive future for South Africa. <img alt="🇿🇦" class="r-4qtqp9 r-dflpy8 r-sjv1od r-zw8f10 r-10akycc r-h9hxbl" decoding="async" draggable="false" height="20" loading="lazy" src="https://abs-0.twimg.com/emoji/v2/svg/1f1ff-1f1e6.svg" title="Flag of South Africa" width="20"/>
</blockquote>
Raymond Ackerman made a significant impact on the retail landscape of South Africa. With over 1600 Pick n Pay stores across the country, the company holds a market capitalisation of R17 billion.
Together with his wife Wendy, Raymond Ackerman established Pick n Pay in 1967 by acquiring four stores in Cape Town. Over the following 56 years, the retail group expanded to include more than 2,000 stores in South Africa, Zimbabwe, Namibia, Botswana, Zambia, Nigeria, Eswatini, and Lesotho.
Aside from his business ventures, Ackerman engaged in various notable endeavours. He initiated 26 battles against the government on petrol price reductions, although he did not emerge victorious. In 1989, he joined a group of businessmen in calling for the release of Nelson Mandela during a meeting with then-President FW de Klerk.
In 2004, Raymond Ackerman established the Raymond Ackerman Academy for Entrepreneurial Development in collaboration with UCT and later the University of Johannesburg. The academy has empowered numerous aspiring entrepreneurs.
Having retired from the board of Pick n Pay Stores Limited in 2010, Raymond and Wendy assumed the role of honorary life presidents. Ackerman, an alumnus of Bishops Diocesan College, served as the president and patron of the Old Diocesan Union. He was bestowed with seven honorary doctorates from local and international universities.
Raymond Ackerman is survived by his wife Wendy, their children Gareth, Kathy, Suzanne, and Jonathan, as well as twelve grandchildren and four great-grandchildren.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pick n Pay Founder Raymond Ackerman Has Died

South African retail tycoon Ackerman family has gained US$20 million in 15 days from Pick ‘n Pay which operates more than 2 000 stores across eight African countries.
Investors and market participants on the Johannesburg Stock Exchange renewed buying interest in Pick ‘n Pay following the release of its half-year financial statement.
Pick ‘n Pay is a Cape Town-based retail and South Africa’s second-largest retailer founded by Raymond Ackerman in 1967.
The Ackerman family also includes Gareth Ackerman, the group’s chairman. Jointly, the family owns a beneficial 25.53-per cent stake in the leading retailer.
The market value of the family’s stake in Pick ‘n Pay has increased by R365.3 million ($20.1 million) since October 21, a day after the group published its first-half results for the 2023 fiscal year.
According to data tracked by <a href="https://billionaires.africa/south-african-billionaire-ackerman-family-gains-20-million-in-15-days-from-pick-n-pay/">Billionaires.Africa,</a> shares in the leading retailer have risen by more than five per cent in the past 15 days, increasing the family’s stake from R6.92 billion ($380.97 million) to R7.29 billion ($401.07 million).
The company’s strong profit growth reflects the normalisation of its operating environment following the July 2021 civil unrest and COVID-19 liquor trading restrictions that had a negative impact on base year sales last year.
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South African Family Gains US$20 Million In 15 Days

Zambians in Lusaka have retaliated to the Xenophobic attacks in South Africa by looting a Pick’n Pay supermarket as seen in the video below:
<div class="jetpack-video-wrapper"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="480" loading="lazy" src="https://www.youtube.com/embed/Xw9WDoh-Qms?feature=oembed" title="Zambia Pick N Pay under attack as people respond to SA Xenophobic attacks" width="640"></iframe></div>

WATCH: Zambians Loot Pick 'n Pay In Retaliation

Retailers in Mutare have indicated that prices of basic commodities have started going down in response to the introduction of Statutory Instrument 142 of 2019. The SI reintroduced the Zimbabwe dollar and made it the sole legal tender for domestic transactions.
Manica Post reports that OK Mutare suggests that prices of many products had been reduced and were in the process of replacing the old price tags. This is said to be in response to the tumbling of the exchange rate on the black market. One unnamed OK Mutare supervisors reportedly said:
<blockquote>Prices of most basic commodities have gone down since the scrapping off of the multi-currency system. Our customers have not yet seen the changes because we are still in the process of changing our price tags.</blockquote>
New prices in OK for some commodities are as follows:
<ul>
<li>2litres Cooking oil = $25 from $27</li>
<li>2kg Sugar = $10,15 from $10.25.</li>
<li>2litres Mazoe Orange Crush = $16,95 from $21</li>
<li>Toothpaste = $5,99 from $6,29.</li>
<li>Gloria cake flour = $16,89.</li>
</ul>
At Spar Supermarket:
<ul>
<li>2litre Cooking oil = $14,99 from $27.</li>
<li>2Kg Rice = $15.29 from $22,</li>
<li>2kg Washing Powder = $12.99 from $15.95</li>
<li>Pack of Tissues = $7.99 from $10.50</li>
<li>1kg Powdered milk = $28.99 from $32.95</li>
</ul>
Manica Post could not establish old pricing structure at TM Pick n’ Pay Supermarket. An official at Pick n’ Pay said:
<blockquote>Prices of most basic commodities have gone down since the scrapping off of the multi-currency system. Our customers have not yet seen the changes because we are still in the process of changing our price tags.</blockquote>
New prices at Pick n’ Pay Mutare are as follows: 
<ul>
<li>2kg of Rice = $16,99,</li>
<li>2g Sugar = $9,99,</li>
<li>Mazoe = $23,99, Cooking oil= $27,49</li>
<li>A tube of toothpaste = $5,99</li>
</ul>
More: <a href="https://www.manicapost.co.zw/currency-reforms-prices-of-basic-commodities-falling/" rel="noopener noreferrer" target="_blank">Manica Post</a>

"Prices Of Most Basic Commodities Have Gone Down Since SI 142 Came," TM Pick n' Pay

Pick n Pay says its Zimbabwean associate, TM Supermarkets has recorded 75 percent earnings growth in the full year to February 26.
Pick n Pay reported on Wednesday that its share of TM’s earnings grew 74.7 percent last year to R80.2 million, representing growth in local currency terms of 71.8 percent. Pick n Pay holds a 49 percent shareholding in TM Supermarkets, with Meikles Limited holding 51 percent. TM Supermarkets now has 56 stores in Zimbabwe, 16 of which trade under the Pick n Pay banner after adding one branded outlet during the year.
More: <a href="http://source.co.zw/2017/04/pick-n-pay-earnings-zimbabwe-associate-75pct/">Source</a>

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