South African retailer Spar Group Limited, says it will partner with an Angolan company in opening a store in the country’s capital, Luanda, in the next six months.
According to the group’s chief financial officer, Mark Godfrey, the group – the third largest retailer in South Africa – would be mostly responsible for product supply and logistics management.
Mr Godfrey said that the group’s board of directors decided that plans to effectively enter other African markets should involve a local partnership, which could offer key intelligence on domestic activities.
“We should make use of local partners without whom we’d be wasting time,” he explained.
The Pinetown-based group already boast a significant presence across Southern Africa with stores in Swaziland, Namibia, Mozambique and Botswana. It also controls 35 percent of Spar Zimbabwe, which is expanding to Zambia.
The South African Retail sector is the largest on the African continent Global Retail Development dominated by retail giants such as Pick n Pay, Shoprite, Woolworths and Spar. However, a margin squeeze on traditional retail products, driven by fierce competition in Africa’s largest economy’s retail industry has forced operators to turn towards neighbouring market in search of new markets.
Source Ventures Africa
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