The Ohlthaver & List (O&L) Group is in the process of finalizing the termination of its franchise agreement with Pick n Pay in Namibia, with plans to rebrand all its Pick n Pay stores in the country by July 2025. This decision marks the end of a 27-year partnership with the South African retail giant, as O&L announced its intention to withdraw from the Pick n Pay Namibia franchise in 2024.
The complete termination of the franchise agreement is anticipated by the end of June 2025, after which all 19 former Pick n Pay stores will be transformed into Model stores. O&L highlighted that its retail journey began with the Model brand in 1965, and now, six decades later, it is returning to its roots.
Founded in 1919, the O&L Group is Namibia’s largest privately held business enterprise. The partnership with Pick n Pay began in 1997 when the first store was opened through O&L at the Wernhil Park shopping mall, which became the flagship store for all Pick n Pay locations in Namibia. Notably, this store was originally a Model store that opened in the mall in 1990.
In July 2024, O&L, operating under the Pick n Pay Namibia brand, announced its decision to terminate the franchise agreement with Pick n Pay South Africa by June 30, 2025, committing to a 12-month transition period. At that time, the group expressed appreciation for the long-standing partnership but emphasized that the decision was in line with its commitment to becoming a more customer-centric and Namibian market-oriented business.
The termination of the franchise agreement coincided with a challenging period for Pick n Pay, which reported a significant loss of R3.2 billion for the financial year ending February 29, 2024 (FY24). In response to these financial difficulties, the retailer initiated several changes, including appointing a new CEO, Sean Summers, launching an oversubscribed rights offer, and planning the separate listing of Boxer stores on the Johannesburg Stock Exchange (JSE). Additionally, Pick n Pay shifted its store strategy, aiming to close around 100 loss-making stores while focusing on revitalizing the Pick n Pay brand and operations.
This transition also marked a significant change in ownership structure, as the Ackerman Family relinquished control of the retailer after 57 years at the helm. In its interim results for the six months ending August 2024, Pick n Pay acknowledged the termination of its long-standing franchise agreement with O&L in Namibia but indicated that it would continue to explore opportunities for the brand in the country.
As of the end of August 2024, Pick n Pay listed a total of 36 stores in Namibia, with O&L owning 19 of those franchise locations. The rebranding initiative is seen as a strategic move for O&L to strengthen its presence in the Namibian retail market and align more closely with local consumer needs.
