SHPis Africa 's largest food retailer. It previously reported that 23, of the total staff complement worked outside South Africa. In Shoprite opened in Namibia. Init acquired the national Checkers chain.
It is also rapidly expanding its footprint in the rest of Africa, including the aim of establishing a major presence in Nigeria.
Despite the level of foreign investor interest in the South African retail sector having risen prior to the acquisition, there has been a marked increase in foreign investment interest since the announcement.
What is the primary growth strategy that your business is relying on within South Africa? Our growth strategy has been acquisitive in nature in the past, but organic expansion is now our primary growth driver.
We have three core supermarket brands each with a unique positioning in the market. The brands start with Usave, a limited assortment hard discounter, which is capturing share from informal traders, independent retailers and previously under-serviced areas.
It is capitalising on the rising middle class as well as increased government spending on social grants. Finally, our Checkers brand has been repositioned and caters to more upmarket consumers, with market share being won from competitors in this segment.
A further key growth driver is the addition of complementary business services. This includes the development of pharmacies, liquor outlets, event ticketing services and basic financial services. What is your overall outlook for the South African retail sector over the next years?
Economic growth should remain positive but more muted.
This is a result of unemployment rates and the inescapable impact of international factors such as the Eurozone crisis. How about growth in the rest of Africa? Considering that the local market is approaching relative maturity, growth here will be closely linked to the ability to create sustainable employment for the masses of unemployed youth.
The opportunity represented by the oil-rich West African countries that previously lacked strong formal retail representation is important to our business in the next 10 years. This will be a significant driver of sales and profitability growth. What are the main barriers to further investment in the sector?
The sluggish pace of property development in Africa and the lack of suitable anchor tenant sites can create significant hurdles to any expansion plans.
In South Africathe over-regulation of consumer goods is creating unnecessary inefficiencies and costs. Examples are new foodstuffs labelling requirements, which make it difficult for even developed economies to export their products into the country. Furthermore, the Consumer Protection Act makes the South African consumer one of the most protected in the world.
In Africa the bureaucracy of intra-African trade is a major challenge. The inefficiency of various customs agencies and government departments make product distribution lead times untenably drawn out and inefficient, which has a negative impact on product availability and costs.This youth month Africa’s largest retailer is set to reach its target of empowering more than12 youths (aged years) to enter the retail sector or start their own business.
Arguably the largest skills development initiative ever undertaken by a South African retailer, the Shoprite Group’s Retail Readiness programme launched in. From the moment the Shoprite Group opened its very first stores in , it had a bold vision for the future.
One that would see the Group grow from strength to strength with new acquisitions and innovative expansion strategies building it into the leading food retailer it is today. South Africa's Shoprite defied a struggling domestic economy with double-digit profit growth on Monday, as its new strategy to sell ready-made gourmet products began to pay off.
– Proud beginnings in the Western Cape-province of South Africa The story of the Shoprite Group starts in November with Pep Stores’ purchase of a small 8-store Western Cape grocer with less than staff members and a value of R1 million, named Shoprite, from the Rogut family.
SHOPRITE HOLDINGS LTD RETAILERS SOUTH AFRICA. Turnover: R bn: Trading Profit Government’s new Inclusive Growth Action Plan and the South African Reserve Bank’s decision to start cutting interest rates reflect a recognition by the state and regulators of the need to stimulate economic growth following the economy’s descent .
This case Shoprite, South African Retailer's Growth Strategies focus on chain of eight supermarkets in South Africa, Shoprite Holdings Ltd (Shoprite), by , has become Africa's largest food retailer with more than outlets and a customer base of 10 million people.
Having operations across 16 countries in Africa, Shoprite plans to further expand and increase its share of non-South African.