CLOTHING retail chain, Power Sales, says it will not close
down operations in Zimbabwe although its parent company, Pepkor Holdings
Limited, is exiting the country.
In announcing the exit decision, the South
African-headquartered Pepkor group indicated that management was finalising
negotiations with the relevant parties to conclude the terms of sale of the
local business.
There was apprehension that Pepkor’s exit signalled an end
to Power Sales’ journey in Zimbabwe and the inevitable loss of employment to
its workers. However, in a statement yesterday, Power Sales assured its local
customers that it was not shutting down local operations. “We would like to
correct and assure our valued customers and business partners that Power Sales
is not closing,” reads part of the statement.
“Final negotiations are in place with the relevant parties
to conclude the terms of sale with Power Sales’ resident directors and Pepkor.”
Power Sales said it was committed to serving the local
market and that it has changed its business model to ensure increased support
for local industry.
“Since July 2019, we have changed our business model by
supporting our local manufacturers. This has been a great success. We know our
business and we look forward to many years of partnership together,” said Power
Sales.
Earlier reports had indicated the Pepkor group was exiting
the local market citing operational challenges. South African media reported
that the company whose brands include Pep Stores, Ackermans, Dunns and Shoe
City, had closed the remaining 20 stores in Zimbabwe, bringing to an end its
close to 40 years presence in the country. The group once operated 200 branches
in Zimbabwe.
The local unit has been struggling to maintain sound
operations in the past few years and recently closed most of its branches in
Bulawayo and remained with only two in the Central Business District.
The group had said its Pep Africa brand, excluding
Zimbabwe, contributed 3,2 percent to total revenue in FY19 and reported strong
sales growth of 14,3 percent. In 2014 the group was reported to have closed 29
of its branches countrywide. Chronicle
0 comments:
Post a Comment