Payless eyes revival after closing down most stores
Pauline Dikuelo | Monday March 6, 2023 06:00
Currently the group operates three stores in Molepolole, another one at BBS Mall in Gaborone and one in Block Six neighbourhood which operates on a part time basis.
Payless CEO, Elliot Moshoke told BusinessWeek that the group is hoping for a P30.5 million bailout from the Citizen Entrepreneurial Development Agency (CEDA) to re-open its stores.
“We intend to re-open our five stores in April once our loan has been approved,” he said on Wednesday. “We were forced to close the shops as the bills relating to power, water, salaries kept on pilling up despite the empty shelves that we had.”
Moshoke said their business failed to stay afloat as the distributors of stock did not give them accounts to buy inventory, which are given to other retailers. He said as a business that was self-financed, it was difficult for Payless to buy with cash from these wholesalers, something that led to the stores being empty.
In addition he said the wholesalers set unconditional terms which were also a hurdle for Payless.
“There is a cartel that has created barriers that no entrant can enter. “I wish government can intervene because the barriers are harsh and usually lead to the collapse of the new entrant. “For example, to get a credit line of stock requires us to provide guarantees which are not even needed from my competitors. “I was given seven days to pay for my stock unlike my competitors who pay within 60 to 90 days,” he said.
However, the CEO said the CEDA injection will see their stores re-opening and the return of the 168 employees who were sent home when the group could not pay their salaries. Payless applied for a loan from CEDA in 2021 but the process was delayed by the pending audited financials which the development financial institution demanded.
“We delayed submitting the financials because we were still new in business, but we have managed to deliver them on Monday this week and are hoping for the best,” he said.
Moshoke said he is also talking to potential investors who are willing to be part of the retail business.
Moving forward he said Payless plans to develop plots in Gaborone, Tlokweng, Mogoditshane and Kanye where stores will be located.
Payless has eight supermarkets around the country, located in Molepolole, Mochudi, Tlokweng and five in Gaborone.