Peoples Trading Centre (PTC) or ‘Peoples’, a subsidiary of conglomerate Press Corporation plc has embraced a new business model which will see Peoples Stores being structured into four brand categories based on customer segments.
Peoples Chief Executive Officer James Madondo said in an interview that the company has been undergoing a functional review of its operations in order to improve on its service delivery and profitability hence the new business model.
He said customers that want to be served through wholesale or retail hybrid stores will be served through a new brand called ‘Peoples Metros’.
“These customers include individuals, Malawians with small grocery shops and hawkers, schools, hospitals, companies and other institutions. To serve these customers better, we are increasing the number of Metros across the whole countryand also converting and upgrading all the shops in areas that fit the Metro segment. We expect to have not less than 26 Metros across the country by the end of the remodeling project,” said Madondo.
The Peoples CEO also said customers that want services through a convenient shop will be served through the Peoples Express Shops.
These shops will mainly be located in Fuel Service Stations and we target to have Peoples Express shops in not less than 30% of the fuel service stations in the country,” explained Madondo.
“Food Lovers customers who want specialized fresh food i.e. special meat, fruit, vegetables, bread and other specialized fresh products will continue to be served through the Food Lovers stores. We will continue to look for space in other shopping malls where additional Food Lovers stores can be deployed,” added Madondo.
He said taking advantage of the SPAR franchise which PTC got in 2015; Peoples will open 15 SPAR shops across the country by converting some Peoples supermarkets stores.
“All customers that want services through a supermarket shop will be served through SPAR brands, taking advantage of the SPAR franchise which Peoples acquired in 2015. All shops in areas where PTC wants to service the customer through Supermarkets are being converted into SPAR and we expect to have not less 15 SPAR shops across the country by the end of the remodeling project,” said Madondo.
He said the targeted segments approach will improve on product offering, targeted pricing structures, appropriate store format and brand; and targeted service configuration.
Madondo, however said as result of the functional review, all Stores whose current state and location do not fit in the new store format were being closed but was quick to point out that Peoples is looking for space in areas where it does not have shops but the area fit the new business model.
He said there are about 17 stores which face closure the whole country.
“Some of the stores that have been closed were in close proximity of each other and were offering competition to each other. As for the other stores especially in the rural areas, they were small for our operation and we decided to give a chance to Malawian business people to run them under the Peoples franchise,” explained Madondo.
“We are not firing anyone. No one is losing their job as a result of this functional review,” assured Madondo.
“Peoples believe the new business model will improve on service delivery and profitability of the company so that it remains the leader of the retail industry in the country,” said Madondo.Follow and Subscribe Nyasa TV :