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The franchise division of the Group uses the Group’s supermarket procurement capacity to offer franchisees competitive prices coupled with the resources and skills to provide their customers with a viable shopping experience.

The OK Franchise Division (OKFD) increased turnover by 7.8%, while operating profit grew due to overhead costs lagging the growth in income. A major development during the reporting period was the offer made for Metcash’s franchise division, which will provide OKFD with a further platform to grow its business and franchisees, representing some two years of organic growth without altering its risk profile. The transaction was ratified by the Competition Authority after year-end and will see some 150 members added to OKFD, albeit with a smaller turnover base for the majority of those compared to existing OKFD franchises.


It was a trying time for all the division’s members who are independent traders doing business all over South Africa and Namibia, as well as in Botswana. Because of their dependence on a single store, they are vulnerable to any downswing in the economy. A highly competitive environment, low food inflation, and steep increases in input costs placed a strain on members’ profitability. 


The OK Franchise Division (OKFD) enabled the Group to gain a foothold in a diverse range of costly smaller, convenience-oriented markets situated in rural towns, suburbs and neighbourhoods. The stores offer a wide range of fresh and non-perishable food items, as well as general merchandise. The OKFD encompasses seven supermarket and convenience outlet brands (OK Foods, OK Grocer, OK MiniMark, OK Value, Friendly, 7-Eleven and Priceclub), a wholesaler (Megasave), and three add-on liquor outlets (Enjoy OK Liquor Store, Friendly
Liquormarket and 7-Eleven Liquormarket). The OK brand is only awarded to outlets that meet specific requirements.