PIK - Pick n Pay Stores Limited - Pick n Pay, BP formalise nationwide roll-

PIK - Pick n Pay Stores Limited - Pick n Pay, BP formalise nationwide roll-     
out of small format stores                                                      
Pick n Pay Stores Limited                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1968/008034/06)                                           
Share code: PIK     ISIN code: ZAE000005443                                     
Pick n Pay, BP formalise nationwide roll-out of small format stores             
Pick n Pay and BP Southern Africa (BPSA) will roll out small-format Pick n      
Pay stores at BP service stations in the major metropolitan areas across        
South Africa. PnP Express stores stock between 1,500 and 2,500 product lines    
and stay open 24 hours a day, 7 days a week, catering to the convenience        
retail market.                                                                  
The two companies initially signed a memorandum of understanding in July 2008   
and have been testing the model since opening the first two PnP Express         
stores in Hout Bay and Tokai in the Western Cape at the end of the same year.   
There are currently nine Pick n Pay Express stores on BP forecourts in South    
Africa.                                                                         
One hundred and twenty BP Express stores will be converted to PnP Express       
stores over the next five years. Additional stores may be converted after the   
initial five-year period. The roll out of PnP Express stores will concentrate   
on those BP sites which are most suitably located for Pick n Pay`s customers.   
Both companies are confident that the format brings multiple benefits to the    
two companies, their franchisees, suppliers, and more particularly to South     
African customers who are in search of efficient and affordable convenience     
retailing.                                                                      
Deputy CEO Richard van Rensburg says "this is a great opportunity for Pick n    
Pay to extend its brand offering to existing Pick n Pay customers and expose    
it to BP forecourt customers too. We`ve tested the format over the past three   
years and the feedback from customers is very positive."                        
International experience suggests that small format stores often spur growth    
and most leading global retailers have a multi-channel presence, including      
forecourt outlets.                                                              
The agreement brings into play key strengths of both businesses, and enables    
Pick n Pay to expand its small store format while continuing to create new      
entrepreneurs, in line with its franchise strategy. "The combination of a BP    
site with BP`s premium fuels offering and PnP Express creates more of an        
incentive for customers to call on a BP site," said Gerard Derbesy, BP          
Southern Africa CEO. "This is in line with BPSA`s growth and investment plans   
over the next two years."                                                       
The agreement paves the way for significant enterprise development through      
the development of new and existing franchisees and will add value to BBBEE.    
Chris Reed, franchise director at Pick n Pay, says "Express stores are small    
format franchise stores which, while on BP forecourts, are instantly            
recognisable as Pick n Pay stores. Trading floor sizes are small and            
typically vary between 150m2 and 250m2.                                         
"Many Pick n Pay customers want to shop frequently in limited-offering stores   
that are convenient, well-located and easily accessible with longer trading     
hours, but they want competitive pricing too. This format provides all of       
this, and also allows customers to have easily accessible free parking, speed   
through the store and the tills and a full service offering."                   
The focus is on convenience meals, pre-packed fresh fruit and vegetables,       
fresh meat, freshly baked bakery products, as well as a selection of hot        
foods, including pies, chicken and hot take-away meals. Groceries, including    
snacks, drinks and cigarettes, magazines and newspapers are also offered.       
Customers will be able to use their Pick n Pay smart shopper cards throughout   
the network.                                                                    
BP`s signature Wild Bean Cafes are part of the offering. Says Reed: "Wild       
Bean coffee is one of the top selling coffee brands in South Africa and will    
add value to the Pick n Pay Express offering."                                  
By order of the board                                                           
Cape Town                                                                       
23 April 2012                                                                   
Sponsor: Investec Bank Limited                                                  
Date: 23/04/2012 17:38:01 Supplied by www.sharenet.co.za                     
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