PEP Shuts Down Business in Uganda

By DailyNewsUG Business Correspondent,

|DailyNewsUG| South Africa’s largest single brand discount retailer in Africa, PEP is closing down business in Uganda. By close of this year (2020), PEP stores would have closed shops in Uganda, rendering more than 80 employees jobless.

One of the reasons resulting into closure of PEP operations in Uganda is the pressure occasioned by coronavirus (COVID-19) disruptions.

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In Summary

  • PEP Uganda started operations in 2016 and it served as a strategic platform to enter the East African market with plans to expand and scale operations. These plans, according to PEP haven’t proved feasible, considering the current and future operating environment.
  • Mr Liaan noted that discussions are currently underway with potential local investors regarding a possible sale of PEP Uganda as a running concern.

PEP Group of Companies Country General Manager, Mr Liaan Max Scholtes, confirmed the development when contacted on Thursday evening.

“PEP Group of Companies have decided to wind down business in Uganda as a result of adverse market conditions in the retail industry,” he said

“The performance of PEP in Uganda has been impacted by macroeconomic factors including a very competitive retail environment, exacerbated by the COVID-19 pandemic. The difficult decision was taken to close operations in Uganda which employs 85 loyal employees,” Mr Liaan added.

Operations comprise 13 retail stores and one distribution centre. It is the largest clothing discount retailer in Africa, with 300 stores across 7 African countries.

PEP Uganda started operations in 2016 and it served as a strategic platform to enter the East African market with plans to expand and scale operations. These plans, according to PEP haven’t proved feasible, considering the current and future operating environment.

Mr Liaan noted that discussions are currently underway with potential local investors regarding a possible sale of PEP Uganda as a running concern.

He said the affected employees have already been consulted and should the potential sale don’t go as planned, the closure of the stores will follow, but in a phased approach which is expected to conclude by the end of December 2020.

He also stressed that PEP will be providing the affected employees in Uganda with a retrenchment package in accordance with legislative requirements.

The 13 PEP Stores in Uganda are known for offering some of the most affordable prices on clothing, footwear.

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