Pick n Pay is opening more smaller stores to keep in line with consumer retail and shopping habits. The South African retailer has said that it is focused on “opening stores that are the right size for customers”.

South African giant Pick n Pay has said it is focusing on expanding its network of through its smaller banners, rather than increasing the number of hypermarkets. This is an effort to keep up with consumer shopping habits that, according to the retailer, are tending towards paying more visits to the supermarkets than what previously happened.

According to CEO Richard Brasher, it isn’t Pick n Pay’s goal to focus exclusively on convenience stores but just that the retailer is focused on “opening stores that are the right size for customers – which, by and large, is a bit smaller and closer to where people live.”.

Pick n Pay Local outlet in Bredasdorp, South Africa. Source: Pick n Pay

According to Trendtype’s Leading Grocery Retailers in Africa Dashboard, Pick n Pay has 7 banners under the Pick n Pay brand (this excludes the Boxer supermarket chains). Disregarding forecourt retail, the smaller of those in store size is Pick n Pay Local, the smallest stores of which are 500m2. According to Trendtype’s Leading Grocery Retailers in Africa Dashboard, they represented, in 2017, less than 1% the retailer’s floorspace in all of its markets.

Not counting with its Zimbabwe network – which is operated in a partnership with retailer TM Supermarkets -, Pick n Pay grew its net outlet number by 124 across Africa. This corresponded to an increase in retail floorspace of 3.3% in 2017. However, an analysis to the banner and format levels reveals, on one side, that none of the new stores were hypermarkets and that supermarkets represented less than 3% of the growth. On the opposite, the number of smaller, local stores grew by 23% (although from a lower starting point).

Mr. Brasher clarified that consumers are shopping less frequently and buying less products at one time, while rents and occupancy costs are increasing at a higher rate. He said that, “as soon as you start trying to chase more space, you’ve got to be careful that you don’t end up with stores that are too big.”