Mauritius-based retail chain Monoprix gains marketshare slowly but surely
Recently, South African supermarket chain Pick n Pay closed its doors in two sought-after Mauritian retail destinations: Bagatelle Mall of Mauritius and Cascavelle shopping mall, which outlets were acquired by the Compagnie des Magasins Populaires Ltée (CMPL), under the franchise of Monoprix. (Image: Architect Africa)
Even as Mauritius’ retail sector is ramping up, some companies are finding it difficult to manage the long gestation period and to absorb mounting losses in their financial statements.
Recently, the South African supermarket chain Pick n Pay closed its doors in two sought-after Mauritian retail destinations: Bagatelle Mall of Mauritius and Cascavelle shopping mall. These outlets were acquired by the Compagnie des Magasins Populaires Ltée (CMPL), under the franchise of Monoprix.
Pick n Pay opened its door at Mauritius’ leading shopping and retail destination, Bagatelle Mall, in September 2011 and one month later, another store came to light at Cascavelle shopping mall.
Pick n Pay’s expansion into Mauritius came after duly evaluating the island as an attractive market for South Africa in terms of high growth in disposable income, and the overall status of the island economy as one of the most successful and competitive economies in Africa.
However, Pick n Pay was unable to manage its presence on the island, and its loss has been CMPL’s gain. Through this acquisition of two departmental stores in high-footfall locations, CMPL plans to improve its financial performance by increasing its marketshare.
It may be noted that Compagnie des Magasins Populaires Limitée operates in five main retail categories, namely food and beverages, fashion, maintenance products, cosmetics and home & leisure under the retail brand Monoprix.
In addition to its flagship presence in Curepipe, Monoprix is present in two more strategic locations, to target customers based in the Moka region and the Western part of the island.
Its latest financial statements show a group revenue of Rs 414.48 million and a loss of Rs 52.44 million in the nine months ending 30 September 2014.
Also, as mentioned recently in Harel Mallac’s financial statements, the negative financial performance of Compagnie des Magasins Populaires Limitée, with its two new Monoprix sales outlets still in the start-up phase, has moderated to a certain level the encouraging results of the group’s overall activities.
Overall though, the group performed well, with a 6.06% rise in group revenues to hit Rs 2.97 billion for the nine month period ending 30 September 2014, while profit after tax rose to Rs 40.32 million.