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Leverage Two Distinct Markets
The Group has the 7th highest brand portfolio value in SA, with
Shoprite and Checkers valued at R11.6bn (Brand Finance 2013)
Higher income market
• Opportunity for Checkers to capture more LSM 8-10 shoppers
• Checkers will deliver better value than competitors
• Consumers still have an appetite for innovation
Middle income market
• Consumer is struggling and trust in Shoprite is enormous
• Shoprite will offer a real price advantage on crucial basic foods
• Customer retention is key as many competitors focus on middle market
• Usave will fill the gap on low-price basic foods closer to consumers’ homes
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Building Strong Brands
• No compromise on our low-price promise
44
Building Strong Brands
45
Building Strong Brands
46
Private Label and Global Sourcing
Enhancing ranges for consumers
• Private Label growth: 18%
• 265 new food and 5 320 non-food products introduced
47
Maximise Share of Wallet
 Prescriptions filled while
consumers shopped
 Whisky now makes up a quarter
of all liquor sales
 Money Market collections up 23%
 40% growth in Money Transfers
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Use Data-Driven Customer Insights
• Digital channels allow us to better understand what customers want
− 1st and only supermarket app in SA
− Mobile coupons
− Airtime rewards program
− Social media
• Advanced analytics to optimise pricing, ranging and promotions
• Mobile and digital is exploding in Africa
• 650 million cellphone subscribers in Africa
− Our digital marketing strategy will be mobile focused
• Shoprite Nigeria Facebook page is the fastest growing in Africa
− 130 000 fans in first 4 weeks
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Control the Supply Chain
• Better on-shelf availability than direct-to-store deliveries
• Now have 29 distribution centres and supply all 17 countries
• Total of 557 324m² of distribution space
− Added 118 000m2 of distribution space in Durban, PE and Cape Town
• Introduced reverse logistics
− Managed the returns for 140 suppliers centrally
• Increasing number of suppliers supplying through our DCs
• A total of R23bn has been invested, entrenching our competitive advantage
• Continued investment with an anticipated R3bn over the medium term
50
Control the Supply Chain – DC’s
Brackenfell: 93 318m²
Centurion: 150 021m²
Durban: 48 000m²
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Port Elizabeth: 10 000m²
Position for African Growth
• SA food retail is becoming saturated and more competitive
• Replicating our low-price positioning in main African markets
• Opportunity to satisfy consumers’ appetite for upmarket products
− 7 Nigeria stores sold more Moët & Chandon than all RSA LiquorShops combined
• Focus remains on west coast countries
− $170bn forecast annual oil export revenue for Nigeria and Angola alone
• 47 additional supermarkets confirmed
− 20 until June 2014 and a further 27 thereafter
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3
Current African Store Footprint
7
3
3
1
Position
for
African
Growth
5
9
17
8
Existing Stores
1
41
9
13
10
801
1
3
20
Africa is Hungry for Shoprite
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Shoprite Nigeria