Information on the target
Acute Global Limited is pleased to announce the successful acquisition of the business and certain assets of Payless Supermarkets (Pty) Ltd. This acquisition marks a significant milestone in the revitalization of one of Botswana’s most recognized retail brands. The transaction was executed through Ellis Retail Group (Pty) Ltd, a special purpose vehicle wholly owned by Acute Global Limited. Following a comprehensive merger assessment conducted under the Competition Act 2018, the acquisition received unconditional approval from the Competition and Consumer Authority of Botswana in January 2021.
Payless Supermarkets has a long-standing presence in Botswana’s fast-moving consumer goods sector, operating as a convenient one-stop shopping destination for households across Greater Gaborone. The acquisition not only ensures continuity of operations but also safeguards employment and preserves the Payless footprint at a time when the business had entered liquidation due to economic pressures exacerbated by the COVID-19 pandemic.
Industry overview in the target’s specific country
The retail industry in Botswana has faced significant challenges in recent years, particularly due to the economic impacts of the COVID-19 pandemic. However, the sector remains a vital component of the country's economy, providing essential goods and services to the population. The fast-moving consumer goods (FMCG) segment, in particular, has shown resilience, with consumers increasingly seeking convenience and affordability in their shopping experiences.
As the economy gradually recovers, there is a growing demand for modern retail formats that can meet the evolving needs of consumers. This trend is driving innovation and competition within the sector, as established brands and new entrants alike strive to capture market share. The government has also been supportive of initiatives aimed at empowering local businesses, which aligns with the broader objectives of enhancing economic resilience and sustainability.
Furthermore, the retail landscape in Botswana is characterized by a mix of traditional markets and modern retail outlets. While traditional markets continue to play a significant role, the rise of supermarkets and convenience stores reflects changing consumer preferences. This shift presents opportunities for retailers to differentiate themselves through improved customer service, product offerings, and shopping experiences.
In this context, the acquisition of Payless Supermarkets by Acute Global Limited is timely, as it positions the brand to leverage these industry trends and capitalize on the growing demand for acce…