LIFESTYLE Holdings has started scaling down operations of its furniture arm by closing several outlets.
Report by Victoria Mtomba
The holding company has interests in fast foods, furniture, supermarkets and until recently banking through TN Bank.
Mobile telecommunications giant Econet Wireless has since taken over the bank.
Sources told NewsDay this week that TN Grill and Supermarket along Robert Mugabe way in Harare would soon be converted into a warehouse and flea market.
Lifestyle Holdings founder Tawanda Nyambirai on Monday told NewsDay that after acquiring Tedco, the group opened new branches in a model centred on TN Bank.
The new branches included Borrowdale, First Street, Fourth Street, Beitbridge and Victoria Falls.
“We have to rationalise our distribution network to cut on costs. Therefore, we have closed Borrowdale and First Street,” Nyambirai said.
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“We shall be closing Victoria Falls. We will keep Fourth Street (branch).
“We are still evaluating Beitbridge.
“Further developments in technology have resulted in the emergence of new and cheaper distribution channels for our products.
“We have a fair amount of data relating to our existing and target market.
“It is cheaper and more convenient for us to move to a virtual distribution network that will reach customers at their homes and workplace.
“Only a few branches will have to be kept for the-touch-and-feel impact.
“The fact that Pelhams has joined the group requires us to examine our branches closely to avoid a situation where we compete against ourselves.”
Last week, Pelhams Limited chief executive officer Oswald Masoha resigned from the company under unclear circumstances.
Contacted for comment Masoha said: “I have left to pursue personal interests.”
Last month, Nyambirai said the company was rationalising its distribution network in line with its new business model that was structured around the fast-foods business.
“We are coming up with a new model because our old model was structured around TN Bank,” he said.
“We have realised that the bank is no longer at the centre of our distribution channel.”
Nyambirai said the fast-foods business was competitive and plans were afoot for the company to grow.
The ZSE-listed entity is seeking shareholder approval to raise capital offshore and plans to delist from the local bourse at an extraordinary general meeting later this week.
