SHOPRITE
A RETAILER TO RELY ON
SHOPRITE
SHOPRITE HAS BEEN GROWING SUSTAINABLY FOR 40 YEARS, AND THIS YEAR CUSTOMERS HAVE FOUND IT AN INVALUABLE SOURCE OF SUPPORT.
A RETAILER TO RELY ON PROJECT MANAGED BY: MALVERN KANDEMWA In 15 countries across Africa, Shoprite is a name immediately associated with cost-effective operational performance. The retailer has built a large footprint over time through its shops and distribution channels, using the latest technologies where appropriate to create value and improve the customer experience.
E
very Shoprite outlet focuses on affordability and a product offering with its roots in a corporateowned food retail model that addresses every sector of the market. It is a customerfirst approach that has made the brand a leader in lowpricing, partnered with their Usave format to provide for underserved communities. This customer-facing service is supported by a centralised supply chain of world-class quality, an extensive array of IT capabilities and a commitment to creating jobs in Africa and delivering shareholders strong dividends. Therefore, Shoprite has been able to generate long-term, sustainable growth for its investors.
2 | BUSINESS FOCUS MAGAZINE
Shoprite has been on this journey since the Group opened its first retail outlets in 1979. Since then, the company has gone from strength to strength, growing organically and through acquisitions to become the continent-spanning brand it is today. Across 15 countries in Africa and the Indian Ocean Islands, Shoprite has over 2,934 outlets employing over 147,000 people. Last year the 2019 Deloitte Global Powers of Retail Report recognised Shoprite as the largest South African retailer thanks to its strong performance and revenue. Indeed, it remains the only South African retailer listed among the world’s top 100, as the 86th largest in a global list of 250.
LEADERSHIP IN A CRISIS
To continue its journey, Shoprite has recently undergone the process of choosing new leadership in the form of Wendy Lucas-Bull as the company’s new Chair Designate, replacing long-time Chairman and the company’s second-largest shareholder, Christo Wiese.
Wiese, who has been Shoprite’s chairman for three of the retail company’s four decades, is remaining with the company serving on the board as a non-executive director after retiring as Chairman at the annual general meeting in November. Lucas-Bull, who also serves as Chairwoman of the Absa Group, has been brought in as an independent voice on the board in line with good corporate governance. Her extensive banking and retail sector experience, combined with her expertise as a chairperson and non-executive director on a number of company boards in a variety of industries in the private and public sector, make her an extremely strong candidate for the role. “There is no doubt her expertise, experience and leadership will be of considerable benefit to both the board and the Shoprite Group,” Wiese said of the appointment. That leadership will be important because Shoprite understands that with its growth and success there must also come responsibilities. The core
BUSINESSFOCUSMAGAZINE.COM
SHOPRITE
BUSINESSFOCUSMAGAZINE.COM
BUSINESS FOCUS MAGAZINE | 3
MIX TELEMATICS HOW BUSINESS INTELLIGENCE CAN MAKE YOUR FLEET MORE EFFICIENT & SAVE YOU TIME When managing a fleet of vehicles you need to constantly adapt to demanding day-to-day challenges. Numerous factors can make a journey accumulate unnecessary costs, be less efficient and exposed to heightened risks. The MiX Insight Analyser Business Intelligence solution is designed to help fleet managers make faster, more informed operational decisions by presenting relevant and accurate fleet data in a simplified way. The online platform provides user-friendly, visually engaging and dynamic dashboards, graphs, charts and tables, allowing you to make comparisons and draw conclusions about fleet utilisation and driver behaviour that saves you valuable time. WHAT CAN FLEET MANAGERS ACHIEVE WITH MIX INSIGHT ANALYSER? • Make more relevant and informed decisions through improved data analysis • Replace manual, static reports, saving time • Pinpoint poor driver behaviours, such as speeding and idling • Reduce fuel consumption, eliminate fines and reduce risk • Reduce costs and improve operational efficiencies • Achieve a positive return on investment as soon as one month after implementation Shoprite implemented the MiX Insight Analyser solution: “The online dashboards and telematics data provided by MiX is vitally important for the daily operational decisions that the Shoprite Checkers Group has to make. We use the active fleet data to detect trends, monitor vehicle utilisation and driver behaviour, as well as fuel consumption. Keeping our business efficient is even more important during the current economic climate.” To book a consultation, send an email to: fleetsa@mixtelematics.com www.mixtelematics.co.za
4 | BUSINESS FOCUS MAGAZINE
POWER FOR TOMORROW TODAY • Batteries and Chargers • Lithium Ion Battery Solutions • Standby and Solar Batteries • Battery Bay Design and Construction • Charger Stands and Racks • Health and Safety Equipment
www.eternitytechnologies.com www.eternitytechnologies.co.za JHB CPT KZN PE
+27 11 965 1875 +27 21 551 2327 +27 31 700 1915 +27 41 451 0160
a member of the
group
BUSINESSFOCUSMAGAZINE.COM
SHOPRITE
of Shoprite’s business is the communities that it interacts with every day through its retail outlets. It never forgets that its success is directly tied to the well-being of those communities, now more than ever. Therefore, Shoprite has developed a corporate social investment programme to
Pieter Engelbrecht, Shoprite CEO.
support those communities in their growth and prosperity. Part of that support remains, simply, in providing products at low prices throughout their 40 years of existence. Internal inflation is monitored carefully as a success metric, and consistently its prices increase far more slowly than national averages.
“SOUTH AFRICANS ARE A FORMIDABLE FORCE FOR GOOD WHEN WE ARE UNITED. TO OVERCOME THE GREATEST CHALLENGE OF OUR TIME, WE NEED TO PULL TOGETHER MORE THAN EVER BEFORE.”
Complete intralogistics from a single source. Your requirements - our solution.
Logistics keeps the world in flux, and intralogistics processes are a significant part of it. An effective and highly efficient inhouse flow of goods is now one of the most important factors in making any company competitive. That is why we devote all our passion to intralogistics. We make sure you get the most economical solutions for your needs, whatever the sector or company size.
0800 984 001
www.jungheinrich.co.za
BUSINESSFOCUSMAGAZINE.COM
BUSINESS FOCUS MAGAZINE | 5
DRIVERISK The Shoprite Group started their relationship with DriveRisk nearly six years ago when Lytx DriveCam® event recorders were installed in a pilot programme to monitor and change risky driver behaviour and thereby reduce their on-road risk exposure. Significantly expanding the number of units installed in their fleet over the years and proactively coaching driver behaviour using the online dashboard and video events, has seen a great reduction in high risk driving behaviour in the Shoprite fleet, with a 58% reduction in scored risky events in the last year. Coupled with their strong driver training programme and the comprehensive Lytx® Driver Performance Management programme, Shoprite have the tools to protect their capital and human investment and improve their bottom line. Embracing future technology, Shoprite Group are currently piloting the new era Lytx DriveCam® Event Recorder, the SF300. This unit harnesses Machine Vision and Artificial Intelligence, offering increased processing power, improved video quality and expanded memory. Engineered to provide configurable state-of-the-art technologies, including on-demand lookback, multiple camera connectivity, it also provides real-time, in-cab audio alerts. This technology not only helps drivers pay better attention if they drift out of a lane or follow too closely, but give management an expanded, nuanced view of previously unknown risk factors like seatbelt use or use of handheld devices. Through developing and providing risk identifying information coupled with behaviour changing solutions, DriveRisk enable fleet operators to establish an accountable and structured solution to proactively manage and reduce risky driver behaviour. www.driverisk.com
The power to evaluate, verify, and discover the critical moments you need, all in one device. The Lytx DriveCam® SF300 Event Recorder offers increased processing power, improved video quality, and expanded memory.* Engineered to provide configurable state-of-the-art technologies, including:
Continual Recording
Live Streaming
On-demand lookback**
Configurable Views
Lytx Badge (Driver ID)
Connect Multiple Cameras
MV+AI triggers Seatbelt, Food and Drink, Smoking and Handheld Device
6 | BUSINESS FOCUS MAGAZINE
BUSINESSFOCUSMAGAZINE.COM
SHOPRITE
“SHOPRITE HAS DEVELOPED A CORPORATE SOCIAL INVESTMENT PROGRAMME TO SUPPORT THOSE COMMUNITIES IN THEIR GROWTH AND PROSPERITY.” BUSINESSFOCUSMAGAZINE.COM
Of course, this year retailers have also had to take responsibility for the safety of their customers amid the COVID-19 pandemic. The Shoprite Group has been committed to adhering to the South African government’s strict measures to combat the virus. The company’s actions have been directed by the guidelines of the National Institute of Communicable Diseases (NICD), the World Health Organisation and Shoprite has been participating in discussions with the Consumer Goods Council of South Africa.
Shoprite’s CEO, Pieter Engelbrecht himself, has led a special executive-level task committee that convenes every 24 hours to monitor the situation. More than that, working with Shoprite’s customers the retailer has donated R3.7 million to the Solidarity Fund via the Act for Change Fund. “South Africans are a formidable force for good when we are united,” Engelbrecht said of the scheme. “To overcome the greatest challenge of our time, we need to pull together more than ever before.”
BUSINESS FOCUS MAGAZINE | 7
SHOPRITE
REWARDING LOYALTY
Another way that Shoprite has set out to support its customers during these difficult times is through the introduction of its new Xtra Savings programme. The new Shoprite Xtra Savings card offers immediate cash savings, following in the footsteps of the Checkers Xtra Savings reward programme. Already over 5 million customers have signed up to the Checkers programme and have been rewarded with over R1 billion in discounts and savings over the last year. Lockdown restrictions have put household budgets under pressure the world over, and value is welcome wherever customers can find it, so the new scheme could not have come at a better time. As Neil Schreuder, Chief of Strategy and Innovation for the Shoprite Group pointed out, “The success of Xtra Savings is its simplicity and transparency. No points and no levels, it’s all about straight-forward instant savings on things you actually need.”
8 | BUSINESS FOCUS MAGAZINE
The way it works is extremely direct, showing the transparency and fairness that are the hallmark of the Shoprite Group. Customers on the Shoprite Xtra Savings scheme will instantly receive discounts of up to 40% off on everyday essentials. On top of that, they will receive added benefits which can include free airtime and savings on combo deals, which are applied automatically at the till. Signing up is free and takes less than a minute through a range of in-person and digital channels. Customers can sign up through WhatsApp, USSD, Shoprite’s website, or simply in one of Shoprite’s stores. Checkers and Shoprite Xtra Savings cards can be used interchangeably at both branded stores, although they are only applicable to the respective brand’s promotions and discounts. It is a boost that customers will welcome during times like this, and it will ensure Shoprite’s continued growth as a customer-centric business.
“THE SUCCESS OF XTRA SAVINGS IS ITS SIMPLICITY & TRANSPARENCY. NO POINTS AND NO LEVELS, IT’S ALL ABOUT STRAIGHT-FORWARD INSTANT SAVINGS ON THINGS YOU ACTUALLY NEED.”
BUSINESSFOCUSMAGAZINE.COM
SHOPRITE
BUSINESSFOCUSMAGAZINE.COM
BUSINESS FOCUS MAGAZINE | 9
SHOPRITE
WWW.SHOPRITE.CO.ZA