BACKGROUND ON SHOPRITE
The Shoprite Group (www.shoprite.co.za) is one of South Africa’s largest food retailers. It owns a whole range of brands with which it attempts to serve the South African food retail market. It has also succeeded to export its business model to the rest of Africa, the only South African retail company to have done so with considerable success. They were clever enough to develop a business model to fit the situation in Africa. They are facing stiff competition from Pick ‘n Pay (www.pnp.co.za) and Woolworths (www.woolworths.co.za). Until a few years ago, the brands Shoprite and Checkers were used interchangeable, to the extent that the market became confused with the situation. About 6 years ago, the Shoprite Group decided to separate the 2 brands, and to launch marketing and branding campaigns to raise the level of Checkers to be able to compete with both Pick ‘n Pay and Woolworths. For your convenience please study the following: • The following websites: o http://www.shoprite.co.za o http://www.shopriteholdings.co.za o http://www.pnp.co.za o http://www.woolworths.co.za o http://www.fastmoving.co.za o http://www.theretailer.co.za o http://www.euromonitor.com/Retailing_in_South_Africa These websites will give you interesting information on the local and international market trends. You need to understand the context of the retail industry and the issues that are prevalent in the industry in order to understand the strategies and activities of Shoprite.
They are by no means an exhaustive list, but do provide an introduction to both the company and the industry.
HISTORY PROFILE 1979 The Shoprite Group of Companies was launched with the acquisition of 8 supermarkets for R1m. Acquired 6 food stores from Ackermans. Acquired Grand Bazaars with its 27 stores. Chain of 169 Checkers stores was acquired. Acquired Sentra, central buying organisation for 550 ownermanager supermarket members. The first Shoprite store began trading in Zambia. Acquired OK Bazaars – 157 super and hyper sized stores and 146 furniture stores. 1997 2000 2000 2001 2001 2002 2002 2002 2002 Opened first store in Mozambique in Maputo. Opened first supermarket in Zimbabwe. Opened first supermarket in Uganda. Opened first store in North Africa in Egypt. Opened first store in Malawi Opened first store in Tanzania. Opened first Hyper outside South Africa in Mauritius. Acquired 5 stores in Madagascar. Listed on Namibian Stock Exchange.
1984 1990 1991 1995
Markinor - Sunday Times Top Brands survey identifies Shoprite and Checkers, individually and combined, as SA’s most trusted supermarket. Rollout of the USave format. Opened first store in Ghana. Opened first store in Angola. Listed on Lusaka Stock exchange in Zambia. Opened first store in Lagos in Nigeria. Acquired Computicket, South Africa’s leading ticketing company.
2003 2003 2003 2003 2005 2005
A GLOBAL PLAYER • • • • Moved strongly into Africa after 1994 to become Africa’s largest retailer Now operate in 17 countries Developed new formats to serve new markets Top 150 retailers in the world in $ sales
INFORMATION TECHNOLOGY LEADER • • • • • Developed largest retail data warehouse Serves as platform for the total business Developed advanced staff scheduling programme Developed extensive inventory management programme for stores Store more than 22 terrabytes of information
DELIVER CONSISTENTLY STRONG RESULTS • • Revenue of R33.5 billion in 2006 33.5% compound growth of operating profit since 1980
DISTRIBUTION • • • • Centralised distribution to stores Developed network of own distribution centres Computer-based scheduling of deliveries Largest distribution centre in Africa
SUPPLY CHAIN • • • • Fully automated replenuishment system Created visibility across the supply chain for both imports and exports Pioneered a forecasting asnd replenishment...