Recipe for success
The journey to a thousand miles begins with one step. In 1967, Raymond Ackerman, the driving force behind the company we know today as Pick n Pay, started the retail giant, when he bought three small stores in Cape Town.
The following year, in 1968, Pick n Pay went public and listed on the Johannesburg Stock Exchange – with shares rocketing from R1 to R6.50 – reaching a turnover of R5 million in the first year. Absa was there from the beginning, as a supportive and trusted partner; and continues to be there as a partner of choice, now banking a retailer with a turnover of R77.5 billion.
Growth and expansion
Over the past five decades, Absa has been a dedicated partner in helping Pick n Pay Group achieve its vision of expansion to encompass 1 560 stores in South Africa, Namibia, Botswana, Zambia, Swaziland and Lesotho, as well as a significant share in TM Supermarkets in Zimbabwe. Zambia was the first country that opened a corporate store outside of South Africa and its neighbouring countries – and Absa played a critical role in helping to facilitate not just this expansion of Pick n Pay, but the growth of the retailer across African markets through its established banking relationship.
Pick n Pay’s expansion plan is to grow its footprint in Africa further afield, and the retailer looks forward to expanding the business in areas where it can serve the needs of communities through its wide product range, affordable prices, great value, and community-rooted staff.
Pick n Pay’s franchise model, which underpins a very important part of their growth, has allowed small entrepreneurs to enter the retail sector and run their own businesses in different areas across South Africa. The Group is focused on delivering good quality at great prices, improving the overall shopping experience and serving its customers in a variety of store formats that are appropriate to their shopping needs. For this reason, Pick n Pay appeals broadly across all sectors of society and seeks to move hand-in-hand with the changing needs and aspirations of its customers.
Banking on the success of your business
Absa and Pick n Pay’s shared commitment to serving their communities, and keeping the customer at the heart of the business, ensures that they both create shared value for the communities in which they trade. This path of shared value will certainly lead to many more innovations that will help to drive societal and economic progress in the country and on the continent. Both companies share the vision to encourage and enable small-scale entrepreneurs to become sustainable suppliers to the retail industry.
At the core of Absa Corporate and Investment Banking’s value proposition lies a deeper understanding of the customer’s business environment and the value chain in which they operate. This extends to the ability to have an honest and transparent relationship with clients, resulting in the partnership that Absa and Pick n Pay have enjoyed for the last 50 years.
The partnership illustrates that when you bank with Absa, you partner with a bank that has your best interests at heart, a partner you can journey with into the future, and one that can take your business banking experience to the next level, to 50 years and beyond.