Source: Power Sales to remain operational | The Herald November 29, 2019
Michael Tome Business Reporter
POWER Sales has dispelled reports that it was closing shop in Zimbabwe following the planned exit of current major shareholder Pepkor Holdings of South Africa.
Although the clothing company acknowledged as true that Pepkor was leaving Zimbabwe, it indicated that Power Sales as a brand was going to remain operational.
“Power Sales would like to make an announcement with regards to the recent unofficial announcements in some local press and online social media on November 25, 2019.
“Please be assured that whilst it is a fact that Pepkor is exiting Zimbabwe, Power Sales is not closing,” said the company in a statement which was released to set the record straight.
Power Sales had mid this year revised its business model by moving to a model that encouraged local clothing manufacturers industry digressing from the Pepkor’s model which was hinged on imports particularly from the home country, South Africa.
“Since July 2019, we have changed our business model by supporting our local manufacturers. This has been a great success.
“Final negotiations are in place with the relevant parties to conclude the terms of sale with Power Sales resident directors and Pepkor.”
“We know our business and we look forward to many years of partnerships together,” Power Sales said.
Pepkor chief executive officer Leon Lourens had earlier on indicated that his company exited Zimbabwe owing to the heightened economic headwinds characterised by soaring inflation, power outages and lack of disposable income and had only tried to remain afloat for the sake of the employees.
“A decision was made to exit operations in Zimbabwe as a result of the continued macroeconomic challenges in the country and ongoing devaluation of the local currency.
“The last few years have been tough. We have hung in there mainly for the sake of our loyal employees in that country. But it got too energy sapping for little returns and we have decided to move on,” said Mr Lourens.
Pepkor whose brands include Pep Stores, Ackermans and Shoe City, left Zimbabwe this week bringing to an end its 20-year presence in the country.