South African retail giant Pick n Pay is targeting the middle market with a new range of QualiSave stores, which promises to offer essential items at lower prices, accounting for 40% of company-owned supermarkets.

Pick n Pay is splitting its brand in half as the retail battle for South Africa's middle market intensifies. Initially referred to as "Project Red", when the brand split was first announced publicly back in May, these stores were touted as being smaller and cheaper, holding less than half of the products available on regular Pick n Pay shelves but at lower prices, catering to consumers who buy essential items in bulk.

The Pick n Pay QualiSave brand – previously known as Project Red – was revealed on Monday morning at a media tour of the revamped Eerste River store in Cape Town.

Pick n Pay's new supermarket brand offers shoppers a range of 8,000 products, with a keen focus on meat, fresh produce, bakery goods, and essential commodities. Products stocked by the new Pick n Pay QualiSave stores have been carefully selected according to research which revealed consumer trends around popular products.

"We have done an enormous amount of research to understand exactly what customers want and need," said Pick n Pay Group CEO Pieter Boone.

"We concluded that we could not successfully meet the needs of all our customers with just one Pick n Pay brand. Freshness, value for money, and customer service were non-negotiable demands across all customers, but they wanted their favourite stores to be better tailored to their specific needs."

The nationwide conversion of regular Pick n Pay stores to QualiSave branches will gather momentum from September, explained the retailer, when these new shops would open with new branding, layouts, and signage. Pick n Pay has already revamped six QualiSave stores over the past three months, with Boone welcoming the "positive customer response" to these pilot stores.

Around 40% of Pick n Pay company-owned supermarkets will be converted to QualiSave stores.

"We are very attuned to the fact that the cost of living is increasing sharply, and Pick n Pay QualiSave will be on the side of customers in providing great everyday value and deals," said Boone.

"This announcement places the Group in a stronger position to serve shoppers' better across its now three banners – Boxer for aspirational customers with tight budgets, Pick n Pay QualiSave for the growing middle market, and Pick n Pay at the higher end, with its renewed emphasis on the best products and services."