OBC expands beyond South Africa’s borders

The OBC Group is frequently in the news, and for all the right reasons. Their latest announcement tells us that on the 25th of March 2019, their cross-border expansion plans became reality. On that day, the first OBC store located on foreign soil started trading in the Nhlangano district of the Kingdom of Eswatini. Given the enthusiastic reception the brand received, it is safe to assume that additional stores will follow before year-end.

A text-book case for cross-border expansion
Those familiar with the way the OBC Group’s management team under the leadership of its Managing Director Tony Da Fonseca does business won’t be surprised to hear that there is nothing random about the brand’s cross-border expansion. The move was meticulously planned and the highly successful Grand Opening of the first store attests to the fact that nothing was left to chance.

Following the selection of the Kingdom of Eswatini as destination, OBC’s senior management team concluded a development agreement with African Alliance, an investor seeking attractive retail opportunities. They already have a presence within the country and are keen to build on this further.

The impact of this development on the local economy cannot be overestimated. Up to now, locals did not have convenient access to a butchery that combined range and quality in the unique way OBC does. This has now changed.

Because many of the locals had visited South Africa or had even lived here for a period, the OBC brand was already familiar to them. They are excited that they now can shop at an OBC store at their own doorstep. This explains why the promotional campaign that was unleashed prior to the store opening had such an impact.

Well before 07:00 AM on the day of the grand opening, a throng of shoppers had formed outside the store, eagerly awaiting its opening. They were anxious to get into the store as early as possible because they wanted to get their hands onto some of the exciting opening specials. They needn’t have worried. The OBC Group’s logistical capabilities are legendary, and the brand did not disappoint. There was sufficient stock to meet demand on opening day, and every day thereafter.

Of course, opening specials were available on opening day only but those who missed out or simply wanted a second bite at the cherry were well catered for. Grocery vouchers to the value of E30,000.00 were made available. Every day throughout the first 30 days of trading, one lucky shopper who purchases goods for as little as E80,00 has the chance to win an E1,000.00 shopping voucher.

Eager shoppers weren’t the only ones who were excited that the OBC brand had finally arrived at their doorstep. Two respected local newspapers, the Swazi News and the Observer on Saturday, devoted full pages to reports on the store opening. Indeed, the Observer on Saturday quoted one shopper as saying, “The OBC store has come to Nhlangano at the right time. Even low-income earners can now find everything they need in one place and buy it at prices they can afford.”

Ambitious roll-out programme
Not surprisingly, the African Alliance representatives are thrilled by the local population’s acceptance of the first OBC store. Branch manager Lucky Manana was quoted in the press as saying, “My excitement is equal to that shown by the shoppers. It is clear that the opening of this OBC store in the southern part of the Kingdom was what the people were waiting for. I want to thank African Alliance’s directors for their foresight in making this investment.”

Motivated by the people’s endorsement of the OBC brand, African Alliance’s directors have set funds aside to finance the establishment of up to 10 stores in the Kingdom of Eswatini within the next three years. Not only is this good news for shoppers throughout the land, it also means the creation of much needed jobs for the local population in areas where work opportunities are scarce.

Last but not least, the stores will work with select local suppliers to balance imports with quality goods sourced locally.

Expansion in South Africa: Full speed ahead!
South African franchise hopefuls need not worry. The OBC Group’s push across South Africa’s borders does not change the fact that in South Africa, many untapped opportunities remain available.

Although over 50 OBC stores are already up and running, market research suggests that there is potential for double this number or more. Indeed, plans are in place to achieve a doubling of store numbers within the next five years or so. This is the beauty of the OBC brand’s target market, LSM three to six. Not only is it the largest market segment and has a huge appetite for the daily essentials OBC stores offer, it is also the fastest-growing. It is safe to say that this will not change in the foreseeable future.

Should you wish to find out more about franchise opportunities for OBC stores in South Africa, follow this linkor write to Robbie Capazorio, the group’s business development manager – robbie@obcgroup.co.za