The Price of control
ZEENAT MOORAD: Mr Price in talks to buy its Kenyan franchise
Mr Price's quest for more control in the rest of Africa.
After nearly 17 years of "going it" with a partner in Kenya, Mr Price is in talks to buy back its Kenyan franchise from Deacons Plc. Setting up operations in new markets with local partners who have on-the-ground knowledge is a common industry route. It’s a low-capex way of expanding a store network, allowing a chain to access sites that wouldn’t necessarily support a corporate store. But it can sometimes mean an inconsistent experience for customers if stores are not invested in. Remember also that a franchisee might not have the capacity to run a volume business efficiently. Mr Price has 11 Mr Price Home and Mr Price apparel stores in the region. Deacons, by the way, is the same group that entered into a franchise agreement with Truworths in 1999 (ongoing) and with Woolworths in 2002 (ill-fated). For a retailer, buying back franchises does one thing: it gives you more control. It was some four years ago that Mr Price decided it would buy back its franchise operations in African co...
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