Group at a glance
The Pick n Pay Group (“the Group”) is one of South Africa’s largest and most successful retailers.
In 1967 Raymond Ackerman purchased four small stores, launching Pick n Pay as South Africa’s first food discounter. Listed on the Johannesburg Securities Exchange the following year as Pick n Pay Stores Limited, its appearance among the Sunday Times Top 100 companies in 1969 reflected its rapid growth to prominence.
In the 2012 financial year the Group generated an annual turnover of R55.3 billion (from continuing operations), while processing more than 50 million consumer transactions a month and employing over 42 000 people. We aspire to be a world-class competitor where we operate, offering the best quality at the best prices, with additional services offered to cater to our customers’ expectations and evolving needs.
At February 2012 the Group consists of 941 stores, owned and franchised, across southern Africa, including a 49% investment in Zimbabwean retailer TM Supermarkets, comprising 50 stores. The franchise operation of the Company has helped create
388 individual entrepreneurs, many drawn from South Africa’s previously disadvantaged communities. Our franchise model has enabled rapid expansion for Pick n Pay and plays an active part in our continued growth. Store formats, both owned and franchised, include hypermarkets, supermarkets, express convenience, liquor, hardware, pharmacies and clothing.
- Doing good is good business;
- Consumer sovereignty; and
- Maximising business efficiency.
We believe the application of these fundamental principles gives a solid platform for a truly sustainable business. Pick n Pay continues to strive to be the consumer champion in the communities in which we operate, always acting in the best interests of our customers and dedicating ourselves to community development and upliftment.
Pick n Pay has been a family business since its foundation. Family control has ensured the maintenance of the values and principles which have driven our commercial conduct since 1967.
Raymond Ackerman retired as Chairman in March 2010, after being involved with the Group for over four decades. His son, Gareth, has taken over as Chairman, while Raymond retains an ambassadorial role in the business.
In 2007 the Group launched an extensive transformation strategy, entering a period of significant investment and change, in order to build the platform for future growth.This investment over the last five years has included:
- A revitalised brand positioning;
- Entry into the growing convenience sector of the market;
- Increased geographic and demographic reach of the Pick n Pay brand with the conversion of Score stores to Pick n Pay franchise stores;
- The re-launch of our private label portfolio;
- A shift towards a more centralised operation, including central distribution;
- The roll-out of SAP information technology and infrastructure for improved operational efficiency;
- Innovative expense control measures in respect of goods not for resale;
- A refocused priority for sustainable business practice and environmentally friendly initiatives;
- Consolidation of duplicate activities to achieve efficiencies and expense reduction;
- The implementation of specialised category buying; and
- The launch of our Smartshopper customer loyalty programme.
As we enter a new financial year, we will accelerate the roll-out of our extensive restructuring programme and sharpen our strategic focus, with resolute attention on business efficiency, increasing productivity and superb customer service. We will continue to invest in our social responsibility initiatives in order to support, develop and uplift our communities to ensure social and economic sustainability for all. We are committed to protecting our environment and conserving natural resources and will continue to roll-out green innovations throughout our operations in the 2013 financial year.
We are confident that the critical investments we have made will lay the foundations for future growth and enhanced competitiveness in national and global markets.