Minister of Finance and Economic Opportunities

(1) Please refer to the previous reply to question 15 (1) of question paper 25 of 2021.

(2) Please refer to the previous reply to question 15 (1) of question paper 25 of 2021.

(3) The Department of Economic Development and Tourism (DEDAT) regularly engages with Pick n Pay to discuss the performance of the eight Market Stores that have been launched to date. Of the eight stores that were opened, seven are still in operation and trading is happening.

All operational stores are currently profitable, but their operations have been negatively affected in terms of sales due to the various Covid-19 restrictions, and most recently, the taxi strikes.

Prior to the Market Store conversion, 24 people were employed in the respective shops. Currently the seven stores collectively employ 177 people (see table 1).

Table 1: Comparative employment figures

(b) The challenges experienced by Pick n Pay in relation to the establishment of the Market Stores relates to (i) municipal planning regulations such as zoning, (ii) suitable site locations and ownership status, (iii) identification of the appropriate store owner and (iv) availability of low-cost funding options.

The challenges experienced by the market stores relates to (i) limited trading relating to the Covid-19 lockdown measures and the impact on cash flow such as the bans on the sale of hot foods, cigarettes, and alcohol (ii) electricity costs (iii) taxi violence and (iv) ordering of stock (under or over ordering)

(c) There has been constant interaction with municipal officials to fast-track applications.

Pick n Pay provides intensive training to the owner(s) and staff to ensure that they understand the operations of the store.

Pick n Pay has proactively engaged with and reached agreements with funders to access development funding.

Where the cash flow challenges posed serious challenges to the business, Pick n Pay managed to successfully engage with funders to negotiate relief measures such as payment holidays and extended loan terms.

Where admin challenges were experienced, Pick n Pay has a dedicated team of project members that provides daily onsite training and onsite assistance to the owners of the Market Stores (e.g., assist with inventory control and ordering of stock).

Pick n Pay is in the process of formally engaging the City of Cape Town regarding electricity charges and appointing a “consumption” consultant to identify potential power saving measures.

The roles of staff members within the stores are constantly being assessed to enhance efficiencies.

(4) Please refer to the previous reply to question 15 (1) of question paper 25 of 2021.

(5) No expenditure has been incurred on the implementation of the draft Township Economic Growth Strategy to date.

Table 2 details the expenditure by DEDAT for the Pick n Pay Market Store project, which was previously referred to as the Township Economic Revitalisation Initiative. The financial assistance to qualifying beneficiaries is in the form of grant funding to facilitate the refurbishment and set up of the market stores.

Table 2: Funds invested in the PnP Market Store project