Mar 8, 2011


Metcash Trading Africa (Pty) Ltd announced today that it has entered into an agreement with the Shoprite Group in terms of which the franchise division of Metcash is sold to Shoprite Checkers. 

The franchise division includes franchise arrangements with franchisees operating retail stores under registered trademark names such as Friendly, Seven Eleven and Price Club Discount Supermarket. The store formats varies from convenience stores to supermarkets and discount supermarkets and are situated throughout the nine provinces of South Africa. 

“This conforms to our Group’s strategy to rationalize our business and to focus on our core business. The transaction will also provide the Group with additional resources to convert our existing Metro stores to the new and exciting hybrid stores as well as to expand the hybrid concept to other areas in South Africa” said Metcash CEO, Mr Peter Dodson. 

The sale, which is still subject to Competition Authority approval, will be integrated in the OK Franchise Division (OKFD), the franchise division of the Shoprite Group which currently has 273 members. Shoprite Deputy Managing Director, Mr Carel Goosen said “The transaction will provide OKFD with a further platform to grow its business and franchisees exponentially, both in numbers and in turnover”. OKFD franchises the convenience store brands OK Foods, OK Grocer, OK MiniMark, OK Value, wholesaler Megasave and the liquor store brand Enjoy in South Africa, Namibia and Botswana. 

“We wish to thank our franchisees for the loyal support over the years and wish them all well in their businesses as future franchisees of OKFD, which will provide them with the opportunity to become part of a wider established franchise business.” Dodson concluded. 

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