By Nicola Mawson
Retail giant Pick 'n Pay might have to wait for at least a year before it benefited from a plan to save the ailing Score chain, a retail analyst said on Monday.
The group said on Monday it was investigating a number of options to save Score, including converting the chain to franchised outlets.
However, the group has already come under fire from a union for its plan, and a retail analyst said the company had a long road ahead of it, with the union's complaint expected to be the first of several complications.
The South African Commercial, Catering and Allied Workers? Union (Saccawu) criticised Pick 'n Pay at the weekend for wanting to convert up to 87 of its 127 Score stores into Pick 'n Pay Family franchise stores.
City Press quoted the union as saying that working conditions would worsen for staff.
The Commission for Conciliation, Mediation and Arbitration was due to hear Saccawu's complaint on Tuesday.
The union has requested that the commission force Pick 'n Pay to uphold labour legislation that would guarantee a continuation of working conditions.
Pick 'n Pay human resources director Isaac Motaung said the company could not comment as it had filed its answering affidavit.
The option of converting the chain into franchised Pick 'n Pay outlets was being discussed with unions, the company said.
The analyst said the conversion would have "major complications", which would include whether store managers would be willing to take the risks involved in becoming owners.
In addition, said the analyst, the franchises might end up competing with other Pick 'n Pay outlets.
He said the retail giant might end up selling stores to external parties.
"It has major ramifications; it?s not an easy solution," the analyst said.
Pick 'n Pay said in April it was looking at various options for saving the chain, which had again "disappointed" the group.
In the previous financial year, the company opened 11 new Family Franchise stores.
It said in April it aimed to open another 20 Family stores in the 2008 financial year.
At close of trade on Monday, Pick 'n Pay was 1,69%, or 59c, higher at R35,49.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge

