TASK 1 [MINI RESEARCH]
LOADSHEDDING AND THE GENERAL RETAIL INDUSTRY
Ramochoni Kuenene
GRADE 12
TENEO SCHOOL
20 FEBRUARY 2023
Contents
Introduction .................................................................................................................................................. 3
Background information on the 5 Franchise General Retailers.................................................................... 4
Discussion on the challenges presented by loadshedding on the businesses, in the ................................ 13
General Retail industry. .............................................................................................................................. 13
Strategies (plans of action) that are currently applied by each of the franchise- General Retailers to
combat the challenges presented. ............................................................................................................. 20
ADDITIONAL, out of the box ideas on how businesses in the General Retail industry can combat
loadshedding and improve their revenue. ................................................................................................. 23
Conclusion ................................................................................................................................................... 24
Reference list .............................................................................................................................................. 25
Bibliography ................................................................................................................................................ 25
Self reflection .............................................................................................................................................. 29
Checklist ...................................................................................................................................................... 29
Anti-plagiarism statement .......................................................................................................................... 31
Introduction
Loadshedding in South Africa has posed as a disturbing problem in the general retail
industry. The challenges loadshedding presents will be discussed in detail, also the
strategies the general retailer has put in place with the aim of tackling the challenges
presented by loadshedding will be discussed. Additional, out of the box ideas that are
practical and cost effective will be analyzed in full.
Background information on the 5 Franchise General Retailers
Shoprite:
Origin of the Shoprite
Growth of the Shoprite
Shoprite was established in 1979 when PEP
stores bought a small 8-chained Western Cape
grocer from the Rogut family. At the time Shoprite
had less than 400 employees and had a value of
less than R1 million rand. They originated from
Namibia but later expanded to South Africa and
later across Africa. Between 1980 to 1988, In
1980 the group decided to focus mainly on
consumers that earn lower to middle income in
the market and also initialize internal growth by
purchasing a variety of supermarkets.
[ (Shopriteholdings, n.d.)]
By 1983, Their growth was recognizable as they
opened their first branch outside the Western
Cape, in Hartswater. In 1986, Shoprite got listed
on the JSE (Johannesburg Stock Exchange) and
was said that the total value of all the company’s
shares of stock was R29 million. By that year
1986, Shoprite were already running 33 outlets in
provinces all over South Africa. In 1989, they
continued to expand, and they opened two stores
in Limpopo. From 1990 their expansion into
Africa was imminent. They Started their
expansion throughout Africa by first opening a
Shoprite store in Namibia, Windhoek. Between
1991 and 1999, they purchased checkers in 1991
and opened new stores in Maputo in
Mozambique, Lusaka in Zambia, and Botswana
in coming years until 1999. The early 2000’s was
arguably Shoprite’s busiest year. Between 2000
to 2009 they focused mainly on investing in
supplementary services. The opened their first
U-save store in Stellenbosch and later opens
new U-save stores in Malawi, Lesotho,
Mozambique, Swaziland, and Ghana after an
extremely Successful U-save format. They further
expanded their Shoprite franchise in Uganda,
Zimbabwe, Malawi, and Egypt. As their way to
give back to the community. Shoprite launched
Shoprite Mobile Soap Kitchen to serve soup and
bread countrywide to support communities.
[ (Shopriteholdings, n.d.)]
The economic contribution of the
Shoprite to the South African
economy
Shoprite provides a huge role in job creation.
With Shoprite running over 500 stores, they have
employed over 145 000 employees. In South
Africa there are more Shoprite stores meaning
that more people are employed thereby
increasing the employment rate of the country. Usave is arguably Shoprite’s most effective and
successful entity. It offers basic food with very
low prices focusing on lower-income markets. By
doing this, U-save reduces crime rate as a lot of
people can afford most of the goods which will
improve their standard of living. Shoprite is well
known for giving back to the community. With
thousands of children unable to go to university
in South Africa. They offer bursaries to support
students who study food science, logistics,
pharmacy, chartered accounting, information
technology, e-commerce, and retail business
management. In return, the students who get the
bursaries will have to go work for Shoprite once
they are done with their studies, which ensures
job opportunities upon graduation. With more
educated individuals, more individuals will
become employed and poverty levels will
decrease contributing to the overall wellbeing of
the country.
[ (Shoprite, n.d.)]
An interesting fact about the
Shoprite.
One interesting fact about Shoprite is that it operates
in 15 African countries, including Angola, Botswana,
Ghana, Kenya, Lesotho, Madagascar, Malawi,
Mauritius, Mozambique, Namibia, Nigeria, Swaziland,
Tanzania, Uganda, and Zambia, making it one of the
largest supermarket chains on the continent.
Additionally, Shoprite is known for its low prices and
is often referred to as the "People's Champion" for its
commitment to making quality products affordable to
all. Shoprite is a leading South African retail chain
that was founded in 1979. Another interesting fact
about Shoprite is that it is not only the largest retailer
in South Africa, but it is also the largest retailer of
African origin in the entire African continent. The
company has over 2,800 stores in 15 countries
across Africa and the Indian Ocean Islands, with over
148,000 employees. In addition to selling groceries,
Shoprite stores also offer a wide range of other
products, including electronics, clothing, and
household goods.
[ (Wikipedia, 2022)]
Spar:
Origin of the Spar
Growth of the Spar
Spar was an idea from a Dutch man called
Adriaan van Well. Spar started in the early
1930s. In 1932, the first store was opened in the
Netherlands. Its name was DESPAR when it
started, which is an acronym for Door
Eendrachtig Samenwerken Profiteren Allen
Regelmatig, it translates, All Benefit from Joint
Co-operation Regularly in English. The
abbreviation DESPAR changed to SPAR when
the decision was made in the 1940s. Spar arrived
as grocery chains in South Africa in the 1960’s.
A group made up of 8 wholesalers were given
exclusive rights to the SPAR name and brand in
1963 and serviced 500 small retailers. South
Africa was the first African country to join the
Spar organization. [ (Spar, n.d.)]
Spar started to go international in 1947 when
SPAR was established in Belgium. In 1953, Spar
started to get known as SPAR international to
support the spar concept worldwide. Around the
1950s, Spar quickly expanded across Europe
and was opened in the UK( United Kingdom).
Spar continued to expand in Europe between
1960 and 1970. In 1963, Spar was established in
South Africa. For Spar international to expand
the organization across Africa, Spar South Africa
had played a massive role in supporting the
expansion of the SPAR to its neighbouring
countries. They succeeded and opened SPAR in
a second African Country. In 1969, they opened
their SPAR store in Zimbabwe. In 1967,
Zimbabwe joined the SPAR network as the 13th
country to do so after they signed a license
agreement with SPAR international. They
redesigned the Spar logo in 1968. The logo was
designed by a man called Raymond Loewy. The
log has remained the same till today. In 1977, the
SPAR organization expanded into Asia as they
opened their store in Japan.1970s marked a
The economic contribution of the
Franchise to the South African
economy
An interesting fact about the
Franchise.
variety of achievements and milestones for the
brand. ASPIAG was established from the SPAR
Austria to extend the SPAR idea in Central
Europe which marked an important milestone in
Spar’s development. During the 1990s, Spar
evolved further into a different retail format. They
launched the SPAR Express retail format and the
SPAR Brand’s Own Label range. In the 2000s,
since 2004 Spar has operated in China,
Botswana, Zambia, Croatia, Portugal and more.
[ (Spar, n.d.)]
Spar help with job creation. Spar has created
numerous jobs for South Africans across the
country. In 2021, the company had over 10,000
employees in South Africa. Spar sources lots of
its product from South African local suppliers to
encourage entrepreneurship and support the
local businesses and the broader community.
Spar is a massive franchise, so they pay relevant
amounts of tax to the government to help donate
to public services and infrastructure. Spar
commits to giving back to the community. The
organization is involved in various corporate
social responsibility initiatives in South Africa,
such as supporting local schools and community
projects. By doing these acts, they contribute
towards the country’s social development.
[ (Spar, n.d.)]
One interesting fact about Spar is that the
company's name is an acronym for "SPAR =
DESPAR," which stands for "SPAR, Door
Eendrachtig Samenwerken Profiteren Allen
Regelmatig" in Dutch, meaning "SPAR, Through
United Cooperation Everyone Benefits
Regularly." The name reflects the company's
founding principle of working together with
independent store owners to create a mutually
beneficial partnership. Another interesting fact is
that the first Spar store was opened in the
Netherlands in 1932, and the company has since
grown to become one of the largest retail chains
in the world.
[ (Spar, n.d.)]
Pick n pay:
Origin of the franchise
Growth of the franchise
Pick n Pay is a South African retail company that
was founded in 1967 by Raymond Ackerman.
Ackerman was inspired to start the company after
visiting supermarkets in the United States and
seeing the potential for a similar type of store in
South Africa. Cape town was the place where the
first pick n pay store was opened and the
company grew rapidly to become one of the
largest retail chains in the country. In early years,
pick n pay’s innovative marketing strategies and
its commitment to providing quality products at
affordable prices was what it was known for.
Over the years, the company has expanded into
other areas of retail, including clothing, liquor,
and pharmacy. Today pick n pay is a family
company. Raymond Ackerman was succeeded
by his son, Gareth Ackerman as the company’s
new chairman. The company is known for its
commitment to sustainability and community
development, and it continues to be one of the
most popular retail chains in South Africa.
[ (IPL, n.d.)]
Over the years, the company has grown into one
of the largest supermarket retailers in South
Africa, with over 1,800 stores in various countries
including South Africa, Namibia, Botswana,
Zambia, Zimbabwe, Lesotho, and Swaziland.
Pick n Pay's growth can be attributed to
numerous factors, including its strong brand
reputation, extensive product range, competitive
pricing, and effective marketing strategies. The
company has also been quick to adapt to
changing consumer trends and has invested
heavily in technology to enhance its operations.
(Referenceforbusiness, n.d.)
(Crunchbase, n.d.)]
The economic contribution of the
Franchise to the South African
economy
An interesting fact about the
Franchise.
Pick n pay helps with job creation. They
employed over 90 thousand people in their
stores, distribution centres, and corporate offices.
This helps to reduce the unemployment rate and
provide a source of income for many South
Africans. Pick n pay also pays relevant amounts
of tax to the government to help fund public
services and infrastructure projects. Pick n Pay
invests in new stores, technology, and other
areas of its business. This helps to stimulate
economic growth and create jobs. Pick n pay
also sources its product from local suppliers to
create business opportunities, helping to
stimulate economic growth.
(Owler, n.d.)
[ (Bizcommunity, 2022)]
One interesting fact about Pick n Pay is that the
company has been committed to sustainability for
many years. In 2008, it became the first South
African retailer to publish a comprehensive
sustainability report, and it has since made
noteworthy progress in reducing its
environmental footprint and promoting
sustainable practices. In 2020, Pick n Pay was
ranked as the top South African retailer in the
Dow Jones Sustainability Index, which
recognizes companies for their sustainability
efforts and performance. Was also ranked as top
South African retailer in the Food and Agriculture
Benchmark by World Benchmarking Alliance.
Another interesting fact about Pick n Pay is that it
was the first South African retailer to introduce a
loyalty program for its customers, called the
Smart Shopper program. The program allows
customers to earn points on their purchases,
which they can then use to get discounts on
future purchases or to donate to a charitable
cause. The Smart Shopper program is now one
of the largest loyalty programs in South Africa,
with millions of members.
(WorldBenchmarkingAlliance, n.d.)
(Zerbst, 2011)
[ (Picknpay, n.d.)]
Clicks:
Origin of the franchise
Growth of the franchise
The first clicks store opened in St George’s
Street in Cape town on 6 august 1968. The store
was established by a retailer called Jack Goldin.
Clicks was originally created to be a drugstore. At
the time, the store primarily sold discounted
merchandise and overstocked goods, and was
named "Click Discount Store”. Clicks have kept
their promise from 1968 where they committed to
value customer with the promise of You pay less
at clicks. In 1978, the business was acquired by
United Pharmaceutical Distributors (UPD), a
pharmaceutical wholesaler, and rebranded as
"Clicks". Under UPD's ownership, Clicks shifted
its focus to health and beauty products, and
expanded its store network throughout South
Africa.
[ (Clicks group, n.d.)]
Clicks expanded outside the western cape
opening a store in Durban in 1971. Clicks has
more than 840 stores in southern Africa,
including Namibia, Botswana, Eswatini and
Lesotho. With a market capitalization of over R72
billion the clicks got listed on the JSE
(Johannesburg stock exchange). In 1995, clicks
launched the Clicks ClubCard Loyalty
Programme which was the first in Africa. Clickd
decided to open a distribution center in Cape
town in 1999 to supply their own stores with
products. As of right now they supply 98% of
Clicks’ product needs, through three distribution
centers. In 2001, Clicks decided to open a body
shop in Sandton city. Over 250 Clicks stores sell
The body Shop products. In 2004, the first clicks
store opened in Sea pint, Cape town. 2007 was
breakthrough year as Clicks switched to
automation and opened its automated
pharmaceutical warehouse in Gauteng which
was the first of its kind in southern Africa.
[ (Clicks group, n.d.)]
The economic contribution of the
Franchise to the South African
economy
Clicks revenue contributes to the economy with a
total of ZAR 34.5 billion in its 2022 financial year.
This revenue represents a significant contribution
to the country's Gross Domestic Product (GDP),
as it generates income for the company's
suppliers, employees, and shareholders. Clicks
also helps the economy with job creation. They
have employed over 16 000 employees as of its
2021 financial year. Clicks Group also
contributes to the South African economy by
paying taxes to the government. The company's
tax payments include corporate income tax,
value-added tax, and employment taxes, among
others. The company also sources its product
from local suppliers to help these businesses
generate income.
(market screener, n.d.)
(Ramsunder, 2021)
An interesting fact about the
Franchise.
[ (companiesmarketcap, n.d.)]
One interesting fact about Clicks is that it was the
first retailer in South Africa to introduce a loyalty
program that offers customers personalized
discounts, called the ClubCard program. The
program has been extraordinarily successful,
with over 8 million members as of 2021. Clicks
has also been a leader in promoting HIV/AIDS
awareness and prevention and was the first
retailer to offer free HIV testing and counselling
services to its customers.
[ (Clicks group, n.d.)]
Mr price:
Origin of the franchise
Mr price was established in 1985 and opened in
1987 after the owners had an interest in John
Orrs Holdings whose trading divisions at the time
were The Hub and Mildays. Laurie Chiappini and
Steward Cohen were the founders of Mr price
which all began in Durban, South Africa. They
both had one idea that rapidly grew to multiple
stores across South Africa. Laurie Chiappini and
Steward Cohen met in 1979 and immediately
understood each other. They had mutual trust
and positive vision between each other for the
future of retail. In 1985, Laurie and Steward
thought the future was factory shops, but they did
not have money to create one. They thought
clothing prices were extremely high and dreamt
of a new kind of factory shop selling quality
merchandise at lower prices.
In 1986, Laurie and Steward managed to get a
loan from the bank, and they bought John Orrs
Ltd. The John Orrs also owned The Hub and
Miladys. Mr price stores were opened by the
company. The company name was changed to
Mr price group when Alastair McArthur joined the
company as the CEO.
Growth of the franchise
The economic contribution of the
Franchise to the South African
economy
[ (entrepreneurhubsa, 2022)]
Mr Price's growth has been its focus on
sustainability and social responsibility. The
company has implemented a number of
initiatives aimed at reducing its environmental
impact, such as using renewable energy sources
and reducing waste. It has also established a
number of community outreach programs aimed
at empowering local communities and improving
social conditions. its focus on offering affordable
prices and trendy fashion, as well as its ability to
adapt to changing consumer preferences and
market trends. The company has also been
successful in expanding its product range to
include homeware and sportswear, which has
helped to diversify its revenue streams.
(Mr price group, n.d.)
[ (Mr price group, n.d.)]
Mr Price has expanded its operations beyond
South Africa to other African countries such as
Kenya, Botswana, and Zambia. This generates
foreign exchange earnings for South Africa and
contributes to the growth of the country's
economy. Mr Price employs over 23,000 people
across its stores, distribution centers, and
corporate offices. This makes it one of the largest
private employers in the country, and its
workforce is representative of the country's
demographic diversity.
An interesting fact about the
Franchise.
[ (Global data, n.d.)]
An interesting fact about Mr Price is that the
company has a strong commitment to social
responsibility and sustainability. In 2013, Mr Price
became the first South African listed fashion
retailer to go online. The company has also
implemented a number of sustainability
initiatives, such as reducing its carbon footprint,
promoting ethical sourcing, and supporting
community development projects.
(Tubbs, 2012)
[ (Mr price group, n.d.)]
Discussion on the challenges presented by loadshedding on the businesses, in the
General Retail industry.
Shoprite
Productivity of the business and its
employees
Additional cost to the business [
Alternative power sources, wages and
salaries, increase in fuel prices etc.]
The scheduled power outages disturbed
operations thereby causing delays and
slowing down processes which
decreased productivity potentially made
employees to be demotivated and have
lower employee morale. With the loss of
electricity, employees will not be efficient
due to limited access to technology and
resources. With farmers being unable to
grow their crops, Shoprite does not have
the suppliers for their products thereby
decreasing revenue which impact
employee salaries.
[ (desk, 2023)]
Shoprite’s used alternative power
sources like backup generators, solar
panels, and other forms of renewable
energy. The power source cost them a lot
especially the use of diesel to power their
backup generators. With a high cost of
R560 million, it made Shoprite increase
the prices of their products a little bit
higher to mitigate the cost.
[ (Mochiko, 2023)]
Maintenance of business infrastructure
The supply chain
Pick n pay
Productivity of the business and its
employees
Additional cost to the business [
Alternative power sources, wages and
salaries, increase in fuel prices etc.]
With the loose of electricity needed to
operate and maintain critical systems,
such as refrigeration and other
equipment. This could have led to the
degradation of infrastructure and
expensive repairs or replacements.
Without electricity access, relevant
maintenance tasks like cleaning and
upkeep may not be completed which will
negatively impact the longevity of the
infrastructure. Combined, these factors
increased costs and decreased efficiency
in maintaining business infrastructure at
Shoprite.
[ (desk, 2023)]
Loadshedding impacted the supply chain
of Shoprite by causing disturbance to
their day-to-day operations. It shut down
their refrigeration systems which affected
the company negatively because they
rejected fresh products due to lack of
power to keep the refrigerators going,
caused inventory loss and impacted the
transportation of goods.
[ (business tech, 2022)]
Pick n pay was impacted negatively and
heavily by loadshedding, during the
power outages, pick n pay would often go
out of service because they rely
massively on electricity to operate. Not
only pick n pay’s productivity is affected
as they are unable to serve customers
and sell products, but employee
productivity was also affected because
they are unable to work and earn wages.
Alternative power sources, such as
generators or batteries, can help Pick n
Pay maintain essential systems and
services during load shedding. However,
these alternative power sources can be
expensive to purchase and maintain and
fuel costs can increase significantly
during extended periods of load
shedding.
The cost of fuel can have a significant
impact on Pick n Pay's operating
expenses during load shedding, as
generators require fuel to operate.
Increases in fuel prices can result in
higher expenses for Pick n Pay,
particularly if they need to rely on
generators frequently during load
shedding.
Maintenance of business infrastructure
The supply chain
Spar
[ (Businesstech, 2023)]
The frequent power outages due to
loadshedding put pressure on electrical
equipment and systems which lead to
increased wear and tear, and sometime
may lead to damage.
For example, refrigeration systems and
other critical equipment like cash
registers and lighting which had to be
powered by backup generators.
Frequently switching between the power
grid and generator power can lead
damage or failure because of the
pressure they put on electrical systems.
[ (Businesstech, 2023)]
The loss of electricity could have
impacted pick n pay’s ability to process
transactions due to shut down
technology, receive deliveries, and
manage inventory, all of which are crucial
factors of a successful supply chain.
[ (Wilson, 2022)]
Productivity of the business and its
employees
Additional cost to the business [
Alternative power sources, wages and
salaries, increase in fuel prices etc.]
Maintenance of business infrastructure
Loadshedding had a significant impact
the productivity and employees of Spar.
Spar also relies on electricity to function
and continue their day-to-day operations
with ease. When there is no electricity,
they are forced to shut down most of their
operations or operate at a reduced
capacity. This can lead to loss of sales
and revenue. Also, due to lack of
electricity employee productivity is
affected because they are unable to
perform their duties and tasks.
Loadshedding can also damage
equipment and inventory which can result
in additional costs for Spar. The
uncertainty associated with loadshedding
can negatively impact employee morale
and motivation of the employees.
[ (Netwerk24, 2019)]
During loadshedding, retail companies
often resort to alternative power sources
like generators to reduce the impact of
power outages on their daily operations,
but the use of alternative power sources
can result in increased operational costs
because of the higher cost of fuel needed
to run the generators. This has led to
increase in price to pay for the high costs
of fuel to operate the power sources.
[ (Madubela, 2022)]
During loadshedding, power outages can
cause damage to electrical systems and
equipment such as refrigeration units,
lighting systems, and electronic point-ofsale terminals. With these damages, it
can result in increased cost of repair and
replacement, as well as disruption to
business operations. For example, the
proper temperatures can be unable to be
maintained by refrigeration systems
thereby leading to spoilage of perishable
goods and loss of inventory.
[ (politicalanalysis, 2022)]
The supply chain
Loadshedding has affected spar heavily,
especially their supply chain. For
example, during loadshedding, trucks
carrying goods may be unable to reach
their destination due to lack of power for
traffic lights, leading to delayed deliveries
and stock shortages. The flow of goods
and supplies to retail stores can be
affected due to Warehouse and
distribution centre operations being
impacted by power outages. Load
shedding can also impact the ability of
suppliers to produce and deliver goods,
as many manufacturing operations in
South Africa rely highly on electricity. This
can lead to unavailability of certain
products, leading to further disruptions in
the supply chain.
[ (desk, 2023)]
Mr price
Productivity of the business and its
employees
Additional cost to the business [
Alternative power sources, wages and
salaries, increase in fuel prices etc.]
Load shedding can cause disruptions to
the normal operations of a store,
including the loss of power to essential
equipment like tills, lighting, and security
systems. This can make it difficult for Mr
Price employees to perform their jobs
effectively, resulting in slower service,
longer wait times, and potential loss of
sales. Load shedding can also affect Mr
Price's ability to manage their stock
effectively. With power outages occurring
at unpredictable times, it may be difficult
for employees to access stock or process
deliveries, leading to potential stock
shortages or delays in getting new stock
on the shelves.
(Wilson, 2022)
Load shedding can cause reduced
business activity, which can impact sales
revenue and, in turn, employee salaries.
If business activity declines during load
shedding periods, Mr Price may need to
reduce employee salaries or cut back on
staffing levels to manage costs.
Maintenance of business infrastructure
The supply chain
Clicks
Productivity of the business and its
employees
Alternative power sources, such as
generators and solar panels, can be
expensive to install and maintain, which
can lead to increased operating costs for
Mr Price. The costs of fuel, repairs, and
maintenance of generators can be
significant, and while solar power can
provide a more sustainable source of
energy, the initial investment may be
high.
Load shedding can cause power outages
that can damage important equipment
used in Mr Price's daily operations, such
as lighting systems, cash registers, and
computers. These outages can also
cause voltage spikes and other electrical
issues that can damage equipment and
require repairs. Load shedding can
increase maintenance costs for Mr Price,
as equipment may need to be repaired or
replaced more frequently due to the
increased wear and tear caused by
power outages.
[ (Wilson, 2022)]
Load shedding can cause delays in the
delivery of goods and materials, as
transport providers may be unable to
move goods during power outages. This
can affect Mr Price's ability to replenish
their stock on time and may result in
stock shortages.
Load shedding can also affect
communication with suppliers, as power
outages may make it difficult for suppliers
to receive orders or to provide updates on
the status of deliveries.
During load shedding periods,
businesses like Clicks are forced to shut
down or operate at reduced capacity,
leading to loss of sales, revenue and
decreased productivity for employees.
The disruption caused by load shedding
Additional cost to the business [
Alternative power sources, wages and
salaries, increase in fuel prices etc. ]
Maintenance of business infrastructure
The supply chain
can also damage equipment and
inventory, leading to additional costs for
the business. This can lead to reduced
profitability and potentially, job losses.
[ (Mfundo, 2023)]
Alternative power sources, such as
generators or batteries, can help mitigate
the impact of load shedding on Clicks
group's operations by providing backup
power to critical equipment and systems.
However, the cost of these alternative
power sources and their associated fuel
and maintenance expenses can
significantly impact Clicks group's
financial performance during load
shedding. The increase in fuel prices can
also have a significant impact on Clicks
group's operating costs during load
shedding. This is because generators,
which are a common alternative power
source during power outages, require fuel
to operate.
During load shedding, power outages can
cause power surges and fluctuations,
which can damage electronic devices and
equipment, including computer systems,
telecommunications equipment, and
other electrical systems. This can result
in costly repairs and downtime for
businesses, including Clicks group, which
can affect their ability to serve customers
and operate efficiently.
During load shedding, power outages can
cause delays in the production and
distribution of goods, as well as create
logistical challenges for transportation
and storage. For example, if a distribution
center experiences a power outage, it
may not be able to process and dispatch
orders, leading to delayed deliveries to
stores. This can affect the availability of
products for customers, which may result
in lost sales and revenue for Clicks.
Strategies (plans of action) that are currently applied by each of the franchise- General
Retailers to combat the challenges presented.
Franchise
Strategies
Shoprite
Strategy 1
Shoprite offers in-store services where
customers charge their laptops and
phones to help them stay connected and
productive. The strategies strengthen
customer loyalty towards the company.
Strategy 2
Implementing energy-saving strategies:
The company has implemented energysaving measures, such as using LED
lighting and energy-efficient refrigeration,
to reduce its reliance on electricity. This
strategy cost the Shoprite about R93.3
million but it has then saved 83.8 million
KWh of energy in 4 years since its
establishment. (InvestSolar, n.d.)
Strategy 3
Investing in backup generators: At some
stores, Shoprite has installed backup
generators to ensure operations are
continued during loadshedding. By doing
this Shoprite increased its total
merchandise sales 17% to R106.3-billion
during the half-year.
(Tshabalala, 2023)
Pick n Pay
Strategy 1
Pick n pay are one of the general retailers
to have invested increasingly in backup
generators, rooftop solar panels and
refrigerated trailer trucks. The strategy
will help the company reduce food waste
refrigerators are not working due to
loadshedding. (Bloomberg, 2023)
Strategy 2
Increase efforts to lower energy
consumption by examining airconditioning, refrigeration, food
preparation, lighting, and other uses of
electricity, with the aim of further reducing
usage while ensuring that customer
service is not negatively affected.
(Businesstech, 2023)
Spar
Strategy 3
By negotiating with landlords, it is
possible to guarantee that they make the
most of opportunities to install solar
panels on store rooftops or allocate an
equitable portion of the renewable
electricity that is generated. [
(Businesstech, 2023)]
Strategy 1
To maintain customer service and
minimize disruptions, Spar has also
installed backup generators to ensure
operation run smoothly and they have
also invested in alternative power
sources like solar and battery backup
systems.
(Mail guardian, 2008)
Strategy 2
Spar have come up with a creative menu
called “loadshedding menu” which seeks
to help locals unable to cook during
constant blackouts. The loadshedding
menu includes different foods ranging
from R200 to R350
The menu offers 4x Spinach and Feta
Stuffed Chicken Breast wrapped in
Beacon with a Sweet Chilli sauce, served
with 600g of creamed spinach and 600g
roasted potatoes which feeds four
people. The second d option the menu
offer is 1x whole roasted chicken served
with 800g of seasoned roasted potato
wedges and a large gourmet greek salad
which also feed four people. This strategy
will ensure customer loyalty because
customers will feel taken care of during
this horrible time.
(Naile, 2022)
Strategy 3
Spar is planning to get electricity from
renewable resources. To reduce energy
consumption and energy costs, Spar has
invested in energy efficiency and solar
photovoltaic initiatives.
[ (3SMedia, 2021)]
Clicks
Strategy 1
Like most of the general retailer in South
Africa, Clicks has invested in alternative
power sources to reduce the impact of
loadshedding. They have invested more
than R57 million on this strategy.
(Clickgroup, n.d.)
Strategy 2
Clicks used loadshedding as an
advantage to increase their sales even
higher. They got to sell loadshedding
essentials which people need mostly in
the country. They sell most rechargeable
products and battery usage products like
UPS (Uninterrupted power supply), Gas
heaters, Power banks/car chargers,
Batteries, Bluetooth audio devices,
Lighting, Wireless vacuums (Battery
operated), Electrical Beauty
(Rechargeable) etc.
(Clicks, n.d.)
Strategy 3
Mr price
Strategy 1
Mr Price has invested in generators to
ensure that their stores can continue to
operate during load shedding. These
generators provide backup power to keep
the lights on and the tills running, allowing
customers to continue shopping even
when the power is out.
Spar aims to install backup power in 70%
of its stores before the end of its 2023
financial year.
(Child & Gous, 2023)
Strategy 2
Mr Price has shifted their working hours
during loadshedding to ensure that they
operate during the times when power is
available. This helps to reduce the impact
of loadshedding on their business and
ensures that they can continue to provide
essential services to their customers.
Strategy 3
Mr Price has also started to install solar
panels on the rooftops of some of their
stores. This enables them to generate their
own renewable energy, reducing their
reliance on the national grid and minimizing
the impact of loadshedding.
(Mr price group, n.d.)
ADDITIONAL, out of the box ideas on how businesses in the General Retail industry
can combat loadshedding and improve their revenue.
Idea
Idea 1
Idea 2
Idea 3
Description
Offer discounts during load shedding
hours: Retailers could offer discounts or
promotions during load shedding hours to
encourage customers to shop during
those times. This could help to offset the
lost sales during outages and incentivize
customers to make their purchases when
the power is on.
Launch a delivery service: Retailers
could launch a delivery service to ensure
that customers can still receive their
orders even during load shedding. By
partnering with delivery companies or
using their own delivery teams, retailers
can keep their business running and
provide customers with an alternative
way to get their goods.
Implement a click-and-collect service:
Another option for retailers is to offer a
click-and-collect service, where
customers can order online and then pick
up their purchases in-store. This can
reduce the impact of load shedding on
sales, as customers can still make their
purchases without needing to browse the
store in person. Additionally, it would
provide an opportunity for retailers to
expand their online offerings and provide
a more convenient shopping experience
for their customers.
Conclusion
Loadshedding has been a persistent challenge for the general retail industry in South
Africa. I have examined the various challenges that loadshedding presents to retailers,
as well as the strategies they have implemented to mitigate these challenges.
Additionally, I have explored a range of out-of-the-box ideas that retailers could consider
to further address the impacts of loadshedding. By implementing innovative solutions
retailers can reduce the negative impact of loadshedding on their business, maintain
customer satisfaction, and ensure that they remain competitive in an increasingly
challenging retail environment. By continuing to adapt to the challenges of
loadshedding, retailers in South Africa can create a more resilient and sustainable retail
industry that is better equipped to withstand future disruptions.
Reference list
Bibliography
3SMedia, 2021. [Online]
Available at: https://infrastructurenews.co.za/2021/09/02/spar-moving-towards-becoming-carbonneutral/
Bizcommunity, 2022. News. [Online]
Available at:
https://www.bizcommunity.com/Article/196/462/231179.html#:~:text=Local%20sourcing%20currently
%20represents%2040,levels%20of%20availability%20for%20customers.
[Accessed 19 february 2023].
Bloomberg, 2023. [Online]
Available at: https://mybroadband.co.za/news/business/479475-south-africas-new-normal-permanentpower-cuts.html
business tech, 2022. [Online]
Available at: https://businesstech.co.za/news/business/617571/shoprite-is-making-a-big-change-to-cutback-on-fuel-and-energy-use/
[Accessed 2023 february 2023].
Businesstech, 2023. [Online]
Available at: https://businesstech.co.za/news/business/662923/load-shedding-costs-pick-n-pay-r60million-a-month-the-permanent-new-reality/
[Accessed 20 february 2023].
Child, K. & Gous, N., 2023. [Online]
Available at: https://www.businesslive.co.za/bd/companies/retail-and-consumer/2023-01-20-mr-priceshares-plummet-as-clothing-salesfall/#:~:text=%E2%80%9CThe%20group%20has%20taken%20urgent,considerable%20cost%2C%E2%80%
9D%20it%20said.&text=The%20group%20aims%20to%20inst
[Accessed 20 february 2023].
Clickgroup, n.d. [Online]
Available at: https://www.clicksgroup.co.za/iar2022/business-
model/#:~:text=Loadshedding%20due%20to%20electricity%20supply,the%20impact%20of%20electricit
y%20outages.
Clicks group, n.d. [Online]
Available at:
https://www.clicksgroup.co.za/history/#:~:text=The%20first%20Clicks%20store%20opens,only%20realis
ed%2035%20years%20later.
[Accessed 20 february 2023].
Clicks, n.d. Promotions. [Online]
Available at: https://clicks.co.za/brands/loadshedding
companiesmarketcap, n.d. Revenue. [Online]
Available at: https://companiesmarketcap.com/clicksgroup/revenue/#:~:text=According%20to%20Clicks%20Group's%20latest,sale%20of%20goods%20or%2
0services.
[Accessed 20 february 2023].
Crunchbase, n.d. Technology. [Online]
Available at: https://www.crunchbase.com/organization/pick-n-pay-stores/technology
[Accessed 19 february 2023].
desk, N., 2023. [Online]
Available at: https://www.shippingandfreightresource.com/south-african-agri-products-and-local-coldchains-at-huge-risk-due-to-loadshedding/
[Accessed 20 february 2023].
entrepreneurhubsa, 2022. [Online]
Available at: https://entrepreneurhubsa.co.za/the-success-story-of-mr-price-how-to-build-a-billiondollar-retail-empire/
[Accessed 20 february 2023].
Global data, n.d. [Online]
Available at: https://www.globaldata.com/company-profile/Mr-Price-Group-Ltd/
[Accessed 20 february 2023].
InvestSolar, n.d. [Online]
Available at: https://investsolar.co.za/looking-at-shoprites-plans-to-go-off-grid/
IPL, n.d. [Online]
Available at: https://www.ipl.org/essay/Pick-N-Pay-Case-Study-P36YQ53RC4DR
[Accessed 19 February 2023].
Madubela, A., 2022. [Online]
Available at: https://mg.co.za/business/2022-11-02-buckle-up-your-disposable-income-is-beinghammered/
[Accessed 20 february 2023].
Mail guardian, 2008. [Online]
Available at: https://mg.co.za/article/2008-05-14-spar-says-its-prepared-for-power-cuts/
[Accessed 20 february 2023].
market screener, n.d. [Online]
Available at: https://www.marketscreener.com/quote/stock/CLICKS-GROUP-LIMITED6492651/company/#:~:text=At%20the%20end%20of%20August,of%20employees%20%3A%2016%2049
2%20people.
[Accessed 20 february 2023].
Mfundo, 2023. [Online]
Available at: https://opera.news/za/en/career-jobs/2270d33f69c17539c2e6d3bb99ada44f
[Accessed 20 february 2023].
Mochiko, T., 2023. [Online]
Available at: https://www.timeslive.co.za/sunday-times/business/business/2023-01-31-stages-5-and-6of-load-shedding-have-cost-shoprite-r560m-on-diesel/
[Accessed 20 february 2023].
Mr price group, n.d. Our divisions. [Online]
Available at: https://www.mrpricegroup.com/mr-price/
[Accessed 20 february 2023].
Mr price group, n.d. Sustainability. [Online]
Available at: https://www.mrpricegroup.com/sustainability/#1
[Accessed 20 february 2023].
Naile, S., 2022. [Online]
Available at: https://www.thesouthafrican.com/news/spar-robindale-praised-for-load-shedding-menu/
Netwerk24, 2019. [Online]
Available at: https://www.netwerk24.com/netwerk24/businesses-suffer-due-to-loadshedding20191217-2
[Accessed 20 february 2023].
Owler, n.d. Overview. [Online]
Available at: https://www.owler.com/company/picknpay
[Accessed 19 february 2023].
Picknpay, n.d. Investor center. [Online]
Available at: https://www.picknpayinvestor.co.za/results-reports-presentations.php
[Accessed 20 february 2023].
politicalanalysis, 2022. [Online]
Available at: https://www.politicalanalysis.co.za/how-has-load-shedding-affected-the-general-retailindustry/
[Accessed 20 february 2023].
Ramsunder, V., 2021. Opinion. [Online]
Available at: https://companiesmarketcap.com/clicksgroup/revenue/#:~:text=According%20to%20Clicks%20Group's%20latest,sale%20of%20goods%20or%2
0services.
[Accessed 20 february 2023].
Referenceforbusiness, n.d. [Online]
Available at: https://www.referenceforbusiness.com/history2/62/Pick-n-Pay-Stores-Ltd.html
[Accessed 19 february 2023].
Shopriteholdings, n.d. Our story. [Online]
Available at: https://www.shopriteholdings.co.za/group/story.html
[Accessed 19 february 2023].
Shoprite, n.d. Careers. [Online]
Available at: https://www.shopriteholdings.co.za/careers/bursaries.html
[Accessed 19 February 2023].
Spar, n.d. About. [Online]
Available at: https://sparinternational.com/history/#:~:text=It%20was%20initially%20launched%20as,from%20Joint%20Co%2Do
peration%20Regularly.
[Accessed 19 February 2023].
Spar, n.d. Suppliers. [Online]
Available at: https://spar-international.com/suppliers/
[Accessed 20 february 2023].
Tshabalala, J., 2023. [Online].
Tshabalala, J., 2023. [Online]
Available at: https://sundayworld.co.za/news/business/loadshedding-cost-shoprite-r560bn-for-diesel/
Tubbs, B., 2012. [Online]
Available at: https://www.itweb.co.za/content/XnWJadMb3xXqbjO1
[Accessed 20 february 2023].
Wikipedia, 2022. Article. [Online]
Available at: https://en.wikipedia.org/wiki/Shoprite_Holdings_Ltd
[Accessed 19 february 2023].
Wilson, N., 2022. [Online]
Available at: https://www.news24.com/fin24/companies/sa-shoppers-abandon-trolleys-as-loadshedding-kills-pay-points-20220920
[Accessed 20 february 2023].
WorldBenchmarkingAlliance, n.d. [Online]
Available at: https://www.worldbenchmarkingalliance.org/publication/food-
agriculture/companies/pick-n-pay-stores/
[Accessed 19 february 2023].
Zerbst, F., 2011. [Online]
Available at: https://mg.co.za/article/2011-03-22-become-a-smart-shopper-at-pick-n-pay/
[Accessed 20 february 2023].
Self reflection
This assignment was challenging and fun. The most difficult part of the assignment was
doing secondary research about the companies, but I worked hard everyday to find
them. I really think I deserve a decent mark on this assignment.
Checklist
Anti-plagiarism statement
Statement of Authenticity
Declaration by the candidate:
I, Ramochoni Kuenene declare that all external sources used in my SBA have been properly
referenced and that this SBA is my own work. I understand what plagiarism is, and accept the
[plagiarism policy of Teneo School in this regard. I have also not allowed anyone to borrow or
copy from my work. I understand that is this is found to be untrue, my SBA will be liable for
disqualification.
Signed: ………………………………………………………………………………….
Date: ……………………………………………………………………………………
Declaration by the candidate’s educator:
I, ……………………………………………………………………………… declare that the work provided by this
candidate has been monitored and checked for plagiarism.
Signed: ……………………………………………………………
Date: ……………………………………………………………..