End of an Era: Pick n Pay Exits Namibia After 27 Years

The Ohlthaver & List (O&L) Group has announced the termination of its franchise agreement with Pick n Pay in Namibia, marking the end of a 27-year partnership. By July 2025, all 19 Pick n Pay stores in the country will be rebranded as Model stores, returning to the brand that started O&L’s retail journey in 1965.

A Long-Standing Partnership Comes to an End

The O&L Group, Namibia’s largest privately held business enterprise, first partnered with Pick n Pay in 1997. The partnership began with the opening of a flagship store at Windhoek’s Wernhil Park shopping mall, which was originally a Model store launched in 1990. Over the years, Pick n Pay Namibia became a household name, with 19 stores operating across the country.

However, in July 2024, O&L announced its decision to terminate the franchise agreement, citing a commitment to becoming a more customer-centric and Namibian market-oriented business. “While we appreciate the long-standing partnership we have had with Pick n Pay South Africa, we are confident that this decision aligns with our vision,” the group stated.

The Shift to Model Stores

The transition from Pick n Pay to Model stores is expected to be completed by the end of June 2025. This move marks a return to O&L’s roots, as Model was the group’s original retail brand when it entered the market in 1965. The rebranding reflects O&L’s focus on localizing its operations and strengthening its connection with Namibian consumers.

Pick n Pay’s Challenges in South Africa

The termination of the Namibia franchise agreement comes at a challenging time for Pick n Pay. The South African retail giant reported a significant R3.2 billion loss for the financial year ending February 2024 (FY24). In response, the group has initiated several strategic changes, including the appointment of a new CEO, Sean Summers, and the separate listing of its Boxer stores on the Johannesburg Stock Exchange (JSE).

Pick n Pay has also shifted its store strategy, planning to close around 100 loss-making stores in South Africa while focusing on renewing and revitalizing its brand. Additionally, the Ackerman Family, which had controlled the retailer for 57 years, officially stepped down, marking the end of an era for the company.

The Future of Pick n Pay in Namibia

Despite the termination of the franchise agreement, Pick n Pay has expressed its intention to explore new opportunities in Namibia. As of August 2024, the retailer listed 36 stores in the country, 19 of which were owned by O&L. While the rebranding to Model stores signifies the end of Pick n Pay’s presence under O&L, the South African retailer may seek alternative partnerships or strategies to re-enter the Namibian market.

A New Chapter for O&L

For O&L, the rebranding to Model stores represents a new chapter in its retail journey. The group’s decision to return to its original brand underscores its commitment to localizing its operations and adapting to the evolving needs of Namibian consumers. As one of Namibia’s most prominent business enterprises, O&L’s shift to Model stores is expected to strengthen its position in the retail sector.

The end of Pick n Pay’s 27-year franchise agreement in Namibia marks a significant moment in the country’s retail history. While the rebranding to Model stores signals a new direction for O&L, it also highlights the challenges faced by Pick n Pay in a competitive and changing market. As both companies navigate this transition, the focus will be on delivering value to customers and adapting to the dynamic retail landscape.

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