Shoprite closes more shops, but wont quit Tanzania market!

[Invisible]

By MIKE MANDE
Sunday Nation

Shoprite Holdings Ltd of South Africa wants to expand its business in Tanzania despite closing some of its shops in the country due to unprofitability.

Ms Sarita van Wyk, the spokesperson of Shoprite Checkers, told The EastAfrican from South Africa that the group would close its Mayfair Plaza store in Dar es Salaam because it was making losses.

She said that although all the stores in Tanzania performed satisfactorily, the business in the country lacked the critical mass needed to break even.

“During the reporting period, the group closed one of its two smaller stores as it could not accommodate a sufficient level of growth.

“The group’s main supermarket in the new Mlimani Mall in Dar es Salaam benefited from the centre now being fully let and showed strong growth in turnover,” she said.

The company closed a second outlet this year in Tanzania, raising fears among staff that it was about to wind up.

The owner has neither denied nor confirmed the claim.

After closing Slipway store in Dar es Salaam in April, the retailer shut the one at Mayfair Shopping Centre. It had 32 employees.

It becomes the fourth outlet in Tanzania to be closed by the South African company since it started operations in the country in December 2001.

Also closed in the past were outlets on Lumumba Street and at Harbour View Towers, both in Dar es Salaam.

Now Shoprite, whose operations in the country were marred by staff strikes last year, remains with only three stores, two in Dar es Salaam and one in Arusha.

The EastAfrican learnt that the closure of Mayfair supermarket a fortnight ago was necessitated by a reported loss of Tsh70 million ($66,667).

This is said to be due to market shrinkage and competition from smuggled goods.

But both the local management of the chain and officials in South Africa have refused to disclose the exact loss, or to comment on the overall performance of the company in Tanzania.

Its general manager for Africa, Gerhard Fritz, said in a brief statement that the management in Tanzania closed Mayfair because it was not making profit.

But he declined to allay fears of imminent closure of the entire business in Tanzania, or to reveal the number of workers who had lost their jobs.

“Shoprite Tanzania has decided to close its non-profitable store situated at Mayfair Shopping Centre. The Shoprite Group stays optimistic about the Tanzania economy and is constantly looking for opportunities to expand its business,” he said.

With the fate of their employment unclear, workers of the Mayfair store have now presented a case of unwarranted retrenchment to the Tanzania Union of Industrial and Commercial Workers (TUICO).

Officials of the union confirmed handling the matter, although the Employment and Labour Relations Act No.6 of 2004 allows the closure of operations by businesses.

A senior Tuico official said they were negotiating the fate of workers with the Shoprite management, which had initially agreed to pay them salaries until the dispute is settled.

During a meeting with Tuico, the general manager of Shoprite Tanzania, Frederich Skein, confirmed that the the Mayfair store made a loss of $66,667.

 

[mfianchi]

Tawi la Kamata nalo litafuatia,nani ataenda Supermarket wakati tuna viosk tele mitaani,tofauti na sehemu zingine,viduka au viosk haviruhusiwi mitaani kutokana ns sheria za mipango miji,sasa mswahili ananunua kwa mpemba sukari kijiko sh 20/= na anakopa,kweli ataenda SM,kwanza hatuna utamaduni wa kununua huko kwenye SM bana

 

[The Boss]

Hiii ni very sad kwa watanzania....
Yaani watu tumeshazoea kununua bidhaa zinazotandikwa chini kwenye mitaro.......
Walipofunga outlet yao ya kinondoni nilishangaa sana
kwani ukivuka barabara unakuta soko chafu lenye mitaro na watu wanajaa...
Halafu wakati wa ramadhani bidhaaa huwa zinapandishwa bei kiholela lakini shporite hwakupandisha bei hasa ya sukari....

 

[ZionTZ]

Tanzania ni zaid ya uijuavyo, but back on track...utamaduni wa kwenda supermarket hatuna hii nikutokana na fikra potofu kwamba SM ni ghali, pili tunaile tatizo la infiriority complex its like we think SM is for some people with certain status which is totally wrong. tunajibagua kutokana na aina ya maisha tuliyonayo.

kuhusu mlimancity, watu wengi wanadhani kule ni kwa mabishoo a.k.a wauza sura, lakini ukiingia SM mfano ya shoprite utakuta vitu ambavyo mtaani ni ghali kuliko pale, mfano maji ya kilimanjaro 1.5L mtaani ni 700tsh wakati pale ni 450. coca ya kopo mtaani ni 1000-1500 tsh lakini pale ni 750. so waTZ tunahitaji kupata elimu zaidi. faida nyingine SM bei hazina msimu, mfano msimu wa xmass au idd mtaani vitu huwa juu lakini pale always inabaki palepale. kingine kwenye SM huwa kuna sale ambapo bei hupungua kwa Percent flan kitu ambacho hakiwezi kutokea mtaani kamwe.

hizo ni hasara zilizotokana na kufungwa kwa SM, lakini faida mojawapo ni kupunguza lundo la bidhaa za southafrica ilifika stage hadi machungwa ni ya SA wkt pale Tanga yanaoza tu.

 

[Korosho]

This is very sad news. I happened to have a chat with a very senior official of Pick N Pay (owners of Score supermarkets) early this year, and the reasons Score supermarkets closed operations in 2001/2 was because of lack of critical mass needed for the business to be profitable.

It is so sad that 8 years later, we still haven't made much progress.

Here is an excerpt from Shop Rite 2009 Annual report.

TANZANIA
The Group now operates four Shoprite supermarkets in this East-African country. During the reporting period it closed one of the two smaller stores as it proved too small to accommodate a sufficient level of growth. Its major supermarket in the new Mlimani Mall in Dar es Salaam benefited from the centre now being fully let and showed strong growth in turnover. Although all the stores performed satisfactorily, the business in Tanzania still lacks the critical mass needed for breaking even.
​

http://www.shopriteholdings.co.za/pages/1019812640/our-brands/Brands-Outside.asp

In 2003 annual report, it is indicated that Shop Rite had increased stores in order to attract the necessary mass to break-even.

To ensure critical mass in Uganda and Tanzania, the number of stores in these countries was increased by six during the period under review, while the location of various stores in Egypt was improved.

The group is now doing profitable business in all African countries except Uganda, Tanzania and Egypt.

http://www.shopriteholdings.co.za/p.../2003/SHOPRITE-CONTINUES-ITS-SOUND-GROWTH.asp

 

[Mama Subi]

Ukweli ni kwamba Shoprite wameshindwa kumaintain standards ambazo tunazitegemea kwenye supermarkets. Nimeshawai kuuziwa garlic bread mbovu (wenye funza!) Believe it or not, nimeshasikia stories nyingi za watu wengine pia kuuziwa vitu vibovu au vilivyo expire. Basically, anyone who has had an incident kwenye any supermarket ya Shoprite atakua anafahamu jinsi hawa jamaa wanavyokosea kwenye masuala ya huduma kwa wateja. Nahisi pia hata huduma kwa wafanyakazi wao hawana maana hao wafanyakazi wanawaibia kila wakipata chance.

Wataendelea kufunga supermarkets zao mpaka zote ziishe. Na sio issue ya shrinking economy ya Tanzania. Mbona wenzao (Shoppers na Shreejees Suparmarkets) ndio kwanza wana expand kwenye high income neighbourhoods za Oysterbay na Masaki na wateja wanajaa?

 

[WomanOfSubstance]

Maisha bora kwa kila mtanzania yalilenga kujenga middle class itakayomudu kununua.Sasa maisha hayo yamewezekana kwa wachache tu na hivyo critical mass haikufikiwa.Bado tutarajie zaidi ya hapo.Shoprite wameanza...wengine waliotegemea maisha bora kujijenga kibishara watafuata.

 

[Mazingira]

Ukweli ni kwamba Shoprite wameshindwa kumaintain standards ambazo tunazitegemea kwenye supermarkets. Nimeshawai kuuziwa garlic bread mbovu (wenye funza!) Believe it or not, nimeshasikia stories nyingi za watu wengine pia kuuziwa vitu vibovu au vilivyo expire. Basically, anyone who has had an incident kwenye any supermarket ya Shoprite atakua anafahamu jinsi hawa jamaa wanavyokosea kwenye masuala ya huduma kwa wateja. Nahisi pia hata huduma kwa wafanyakazi wao hawana maana hao wafanyakazi wanawaibia kila wakipata chance.

Wataendelea kufunga supermarkets zao mpaka zote ziishe. Na sio issue ya shrinking economy ya Tanzania. Mbona wenzao (Shoppers na Shreejees Suparmarkets) ndio kwanza wana expand kwenye high income neighbourhoods za Oysterbay na Masaki na wateja wanajaa?

Binafsi nilishawahi kununua soseji pale shoprite ya Slipway tuliharisha nyumba nzima, kwa maana nyingine zilikuwa zimeoza bila sisi kujua. Pia kuku wao wengi huwa wameoza.

Kuhusu suala la wafanyakazi wao kuwaibia hii ni kweli kabisa, na ndo walisema ilikuwa sababu kubwa ya tawi la pale Lumumba kufungwa.

 

[TIMING]

Hiii ni very sad kwa watanzania....
Yaani watu tumeshazoea kununua bidhaa zinazotandikwa chini kwenye mitaro.......
Walipofunga outlet yao ya kinondoni nilishangaa sana
kwani ukivuka barabara unakuta soko chafu lenye mitaro na watu wanajaa...
Halafu wakati wa ramadhani bidhaaa huwa zinapandishwa bei kiholela lakini shporite hwakupandisha bei hasa ya sukari....

Bosi, naomba nitofautiane na wewe kidogo;
Hawa jamaa wana margin kubwa sana, very different na wenzetu walioendelea... lakini nachukulia hii kama opportunity ya wabongo kuanza kupenya na kuweka stores za jamii ile hata kama ni kwa small to medium scale, inawezekana!!! Wenzetu kenya wameonyesha nia na kuna wakati walitaka kuja kupima maji huku... i would welcome the challenge just to show wa_tz that it can be done

 

[Katikomile]

Binafsi nilishawahi kununua soseji pale shoprite ya Slipway tuliharisha nyumba nzima, kwa maana nyingine zilikuwa zimeoza bila sisi kujua. Pia kuku wao wengi huwa wameoza.

Kuhusu suala la wafanyakazi wao kuwaibia hii ni kweli kabisa, na ndo walisema ilikuwa sababu kubwa ya tawi la pale Lumumba kufungwa.

Mara nyingi wizi unafanyika kwa kuwashirikisha wateja na yule Cashier. Unabeba mzigo wa laki 200, unalipia 70,000 then yeye unamwachia 50,000, maisha yanasonga!

 

[Katikomile]

Binafsi nilishawahi kununua soseji pale shoprite ya Slipway tuliharisha nyumba nzima, kwa maana nyingine zilikuwa zimeoza bila sisi kujua. Pia kuku wao wengi huwa wameoza.

Kuhusu suala la wafanyakazi wao kuwaibia hii ni kweli kabisa, na ndo walisema ilikuwa sababu kubwa ya tawi la pale Lumumba kufungwa.

Usipoteze muda na pesa yako kununua kuku wa shoprite, itakula kwako Mazee!!!!!! Na umeme huu wa Ngeleja ndo balaa kabisa kwani zinaozeana huko kwenye majokofu yao ni balaa. Standby generator zenyewe haziko reliable, mara mafuta yameisha mara mbovu, basi kero tu!

 

[Katikomile]

Tawi la Kamata nalo litafuatia,nani ataenda Supermarket wakati tuna viosk tele mitaani,tofauti na sehemu zingine,viduka au viosk haviruhusiwi mitaani kutokana ns sheria za mipango miji,sasa mswahili ananunua kwa mpemba sukari kijiko sh 20/= na anakopa,kweli ataenda SM,kwanza hatuna utamaduni wa kununua huko kwenye SM bana

Tax payment control bado sana hapa kwa Kikwete na Kitilya!! Viosk na Machinga kibao mtaani wanauza bidhaa nyingi bila kulipa kodi, japo nyingi ni mchina, lakini je Shoprite atashindana nao kweli? Wabongo suala la quality hakuna ni quantity na bei tu, no matter kama bidhaa ni genuine, brand, original ama durable!

 

[Katikomile]

By MIKE MANDE
Sunday Nation

Shoprite Holdings Ltd of South Africa wants to expand its business in Tanzania despite closing some of its shops in the country due to unprofitability.

Ms Sarita van Wyk, the spokesperson of Shoprite Checkers, told The EastAfrican from South Africa that the group would close its Mayfair Plaza store in Dar es Salaam because it was making losses.

She said that although all the stores in Tanzania performed satisfactorily, the business in the country lacked the critical mass needed to break even.

“During the reporting period, the group closed one of its two smaller stores as it could not accommodate a sufficient level of growth.

“The group’s main supermarket in the new Mlimani Mall in Dar es Salaam benefited from the centre now being fully let and showed strong growth in turnover,” she said.

The company closed a second outlet this year in Tanzania, raising fears among staff that it was about to wind up.

The owner has neither denied nor confirmed the claim.

After closing Slipway store in Dar es Salaam in April, the retailer shut the one at Mayfair Shopping Centre. It had 32 employees.

It becomes the fourth outlet in Tanzania to be closed by the South African company since it started operations in the country in December 2001.

Also closed in the past were outlets on Lumumba Street and at Harbour View Towers, both in Dar es Salaam.

Now Shoprite, whose operations in the country were marred by staff strikes last year, remains with only three stores, two in Dar es Salaam and one in Arusha.

The EastAfrican learnt that the closure of Mayfair supermarket a fortnight ago was necessitated by a reported loss of Tsh70 million ($66,667).

This is said to be due to market shrinkage and competition from smuggled goods.

But both the local management of the chain and officials in South Africa have refused to disclose the exact loss, or to comment on the overall performance of the company in Tanzania.

Its general manager for Africa, Gerhard Fritz, said in a brief statement that the management in Tanzania closed Mayfair because it was not making profit.

But he declined to allay fears of imminent closure of the entire business in Tanzania, or to reveal the number of workers who had lost their jobs.

“Shoprite Tanzania has decided to close its non-profitable store situated at Mayfair Shopping Centre. The Shoprite Group stays optimistic about the Tanzania economy and is constantly looking for opportunities to expand its business,” he said.

With the fate of their employment unclear, workers of the Mayfair store have now presented a case of unwarranted retrenchment to the Tanzania Union of Industrial and Commercial Workers (TUICO).

Officials of the union confirmed handling the matter, although the Employment and Labour Relations Act No.6 of 2004 allows the closure of operations by businesses.

A senior Tuico official said they were negotiating the fate of workers with the Shoprite management, which had initially agreed to pay them salaries until the dispute is settled.

During a meeting with Tuico, the general manager of Shoprite Tanzania, Frederich Skein, confirmed that the the Mayfair store made a loss of $66,667.

Ni woga tu na kukosa strategies za maana! Market study anafanya Msauz unategemea nini. Local consumers, market share na market segment vinahitaji element ya wazawa kidogo ili u-come up with a good conclusion!

Mbona Karim kafungua shoprite Haile Selasie Masaki na mzigo unachanganya kwa kwenda mbele!

 

[Shishye]

There are two expected outcomes out of businesses and all business owners know this; making a profit or loss. There is nothing unusual about Shoprite store making a loss. Many other businesses are closing down even outside Tanzania. If your business strategy has failed and you are making losses, the next intelligent step is to close down and re-strategize.

Tey should therefore concentrate their efforts on the Mlimani store if it's profitable and leave us serve the rest of the places which are profitable for us!

 

[Mambo Jambo]

Ni woga tu na kukosa strategies za maana! Market study anafanya Msauz unategemea nini. Local consumers, market share na market segment vinahitaji element ya wazawa kidogo ili u-come up with a good conclusion!

Mbona Karim kafungua shoprite Haile Selasie Masaki na mzigo unachanganya kwa kwenda mbele!

Kuna jamaa yangu alishawahi kuniambia kwamba Bongo neno Shoprite linamaanisha supermarket nilimbishia sana, kumbe kweli....duh...

 

[The Boss]

kuna jamaa yangu alishawahi kuniambia kwamba bongo neno shoprite linamaanisha supermarket nilimbishia sana, kumbe kweli....duh...

hehehe he he.

 

[Serendipity]

Binafsi nilishawahi kununua soseji pale shoprite ya Slipway tuliharisha nyumba nzima, kwa maana nyingine zilikuwa zimeoza bila sisi kujua. Pia kuku wao wengi huwa wameoza.

Kuhusu suala la wafanyakazi wao kuwaibia hii ni kweli kabisa, na ndo walisema ilikuwa sababu kubwa ya tawi la pale Lumumba kufungwa.

Ukinunua sikunyingine usome expire date, ungesoma hiyo tarehe msingeharisha ovyo!

 

[Nanu]

My God, if it is my business, I will also close. The problem of integrity is really killing the business in Tanzania and discourages investors be it local or international. Kisa cha viduka vidogovidogo ni huu huu wizi...

 

[Pretty]

Kuna baadhi ya wabongo wanaogopa kununua bidhaa vya supermarket eti zinaleta ugonjwa wa cancer.
kwanza hiyo shoprite bidhaa zao nyingi zilikuwa product za south africa.

 

[FirstLady1]

Usipoteze muda na pesa yako kununua kuku wa shoprite, itakula kwako Mazee!!!!!! Na umeme huu wa Ngeleja ndo balaa kabisa kwani zinaozeana huko kwenye majokofu yao ni balaa. Standby generator zenyewe haziko reliable, mara mafuta yameisha mara mbovu, basi kero tu!

dah hatari