Shoprite South Africa
CASE STUDY: SHOPRITE RETAIL GROUP UMBS JUNE 2009
1.
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.
2.
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
1.
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.
2.
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