AG Leventis Enters Partnership With South African Retailer, Pick n Pay | Independent Newspapers Limited
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AG Leventis Enters Partnership With South African Retailer, Pick n Pay

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Posted: Apr 27, 2016 at 4:19 am   /   by   /   comments (0)

 

Pick n Pay, a South African retailer, is entering the Nigerian market through an alliance with AG Leventis, a quoted Nigerian trading company with over 90 years experience in the retail business.

The joint venture announced on Tuesday by Leventis will have Pick n Pay as the senior partner with a 51 percent stake.

AG Leventis has nearly 90 years trading experience in Nigeria with a history of investing in long-term quality assets. The company said it intended rolling out a combination of large and smaller formats to meet consumer needs in Nigeria, offering ranges tailored to local communities.

Speaking on Tuesday at the release of the company’s year-end results, CE Richard Brasher said: “The opportunity presented by Nigeria is well-known: a population of 180 million, an economy worth US$500 billion, and GDP growth of around 5% a year. Some analysts forecast that by 2030 Nigeria could have 160 million households with sufficient incomes for discretionary spending, and a consumer goods market worth more than US$1 trillion.

“The development of modern shopping malls since 2005 in a few major cities reflects rising incomes and changing lifestyle options enjoyed by middle class Nigerians. Existing formal players in this market have relatively little scale.”

According to him, Nigeria offers long-term growth prospect for investors and therefore it is a market, which Pick n Pay, cannot ignore in its quest for long-term sustainable growth.

He was quoted in biznews.com as saying, “I set three pre-conditions for success in the Nigerian market: first, we need to understand local consumer needs and how these are evolving in the country. We have done an enormous amount of research on the ground over the past two years to get this right. Secondly, given the complexities of the Nigerian market, we believe a joint venture with an experienced local partner is the right approach. I am delighted with our decision to enter Nigeria with AG Leventis, which has nearly 90 years trading experience in the country. AG Leventis has huge expertise in supply chain logistics from their activities in the FMCG, motor vehicle, logistics and real estate sectors, and notable FMCG capabilities through Leventis Foods.

“Thirdly, as elsewhere in Africa, our growth must take place in a deliberate, planned, and unhurried way, without putting the business under undue risk.

“Leventis is a family business with a similar operating ethos to that of Pick n Pay and I am confident that we have the right decision, the right partner and the right plan.”

AG Leventis Group Executive Vice Chairman and CEO Michael Economakis said: “Pick n Pay as an African brand is among the largest supermarket chain stores in South Africa. Pick n Pay is known for their brand values, quality and excellent service. We are delighted about this partnership with a highly recognized and trusted brand whose values; operational ethics and dynamism fully align with those of AG Leventis Group. The consumer market in Nigeria is growing with a preference towards quality and affordable goods. Our partnership with Pick n Pay will deliver unparalleled service delivery in Nigeria. Furthermore, this partnership is set to create jobs and youth empowerment.”