Pick n Pay at a glance

Pick n Pay has played a valuable role in the economic and social development of South Africa over the last five decades. The Group now has 1 076 stores across all formats, directly employs 50 000 people (excluding our franchise stores) and is supplied by more than 5 000 suppliers and service providers.

Pick n Pay Holdings Limited RF and Pick n Pay Stores Limited are investment holding companies listed on the JSE since 1968. Pick n Pay Holdings Limited RF’s sole purpose is the holding of the controlling shareholding in Pick n Pay Stores Limited, and is in turn controlled by the Ackerman family, who have a proud retailing history in South Africa. Pick n Pay Stores Limited, through its subsidiaries and associate, operates in the retail sector in South Africa and in six other southern African countries.

Pick n Pay is a multi-format, multi-channel retailer, with a unique focus on the customer and its communities. Since 1967 when consumer champion Raymond Ackerman purchased the first few stores, the Ackerman family’s vision has grown and expanded to encompass stores in South Africa, Namibia, Botswana, Zambia, Swaziland and Lesotho. Additionally Pick n Pay owns a 49% share of a Zimbabwean supermarket business, TM Supermarkets.

Pick n Pay has played a valuable role in the economic and social development of South Africa over the last five decades. The Group now has 1 076 stores across all formats, directly employs almost 50 000 people (excluding our franchise stores) and is supplied by more than 5 000 suppliers and service providers. Pick n Pay is a strong brand, much loved in society, which has been built on a genuine desire to make life better for our customers and to make a positive contribution to the communities in which we live and work. Brand loyalty is a key strength of our business and is what challenges us and drives us to improve each and every day in order to meet the needs of all our stakeholders.

Our offer to customers focuses on food, groceries, clothing, health and beauty products and general merchandise, but also includes additional value-added services (such as financial transactions at till points, ticketing services and the sale of iTunes’ vouchers) to cater for our customers’ expectations and evolving needs. To ensure a convenient and accessible shopping experience the Group operates across multiple store formats, on both an owned and franchise basis and offers a growing online shopping business.

As a major retailer in southern Africa, the Group strives to address the socio-economic challenges in the communities it serves, through the supply of high-quality, affordable food for all customers, while providing significant employment and economic opportunities across its value chain.

Store footprint

Pick n Pay has an extensive retail presence in southern Africa, with a strong and diverse portfolio of stores. Pick n Pay has 1 076 stores, having opened 111 stores in the 2014 financial year, adding net 3.4% to our space. Pick n Pay is not focused on a single customer demographic, but is focused on being the retailer for all South Africans. Our expansion programme is focused on growing the business by opening stores which reflect the changing habits and needs of our customers and which will bring new customers and communities into the Pick n Pay family. Our franchise operation adds to the scale of our business and the reach of our brand, both inside and outside of South Africa. There is no doubt that partnering with experienced retailers and entrepreneurs has been positive for our business and has helped us play a significant role in the transformation of business in South Africa. We are developing our presence outside of South Africa, which although still a relatively small part of our business, has the potential to be a second engine of growth for Pick n Pay. Pick n Pay closed its franchise business in Mauritius and Mozambique during the year, exiting territories and partnerships which were not profitable for the Group, in order to focus on more
strategic opportunities.

* Trading by the Group’s associate TM Supermarkets with three stores trading as Pick n Pay.

Store formats

Format	Offering
Supermarkets	Our supermarkets offer a wide range of groceries, as well as a targeted range of clothing and general merchandise. Customers can get everything they need, from a quick daily “top-up” to a larger weekly or monthly bulk shop and can always rely on our quality, availability and great value. Our fresh produce and butchery offering is complemented by an in-store bakery, deli and hot food counter. Pick n Pay supermarkets serve a range of communities across southern Africa, from lower and middle income families to the most affluent households. We ensure our ranges are tailored to meet the needs of the local communities we serve. Some stores focus on basic necessities and local produce, while others boast specialty service counters, wine rooms and sushi bars. Convenience is important and we provide our customers with easily accessible locations and good parking.
Hypermarkets	Our largest format store, providing customers with an expanded range of groceries, clothing and general merchandise. A hypermarket is a “one stop shop”, where customers can get everything they need under one roof. Our Hypers offer fresh produce, a butchery, a deli, a bakery and a hot food counter, but also offer specialist categories not always available in a supermarket, such as home appliances, kitchenware, home improvement, garden and pool accessories, toys, stationery and an expanded health and beauty range. These retail sites are large, catering for destination shoppers, with wide aisles and clear signage and boast ample parking. Prices are very competitive, with a leaning towards multi-pack and bulk-buy items and increased targeted promotional activity. Our hypermarkets have become landmarks in their surrounding communities, regularly hosting competitions, charitable events and other community initiatives.
Express	Our partnership with BP, provides a small convenience Pick n Pay Express store on a BP petrol station forecourt. The express store is our smallest format store, offering a targeted convenience range that satisfies an immediate “top-up” shop or a quick meal solution. The range is small, with a limited choice and is mainly focused on daily necessities in small packages. There is a limited fresh food offer. Value-added services include an ATM, lottery, airtime and electricity purchases. Our sites are located in high traffic flow areas, including high density residential areas and public transport intersections. Express stores are open 24 hours.
Clothing	Pick n Pay provides the whole family with good quality, fashionable clothing and footwear at exceptional value. Our offer is broad, from baby and children’s wear through to men’s and ladies wear and includes casual wear, sleep wear, active wear and even caters more formally for the office. Our private label Real has become a much-loved South African brand and is complemented by our exclusive rights to the international brands Cherokee and Maui & Sons. Our standalone clothing stores provide the same quality and value-for-money as our hypermarkets and supermarkets, but with an extended range.
Liquor	Our liquor stores are situated close to our supermarkets, but with a separate entrance, as South African liquor laws do not allow for alcohol (other than wine) to be sold in supermarkets. Our liquor stores provide customers with the added convenience of purchasing alcohol at the same time as doing their grocery shop. Pick n Pay Liquor stores offer a wide range of beers, cider, fruit alcoholic beverages, wines, fortified wines and spirits. Our liquor stores help customers cater for parties and functions by providing a full delivery service, including the provision of all glassware, coolers and ice.
Pharmacy	Pick n Pay operates 24 pharmacies in store, with four stand-alone pharmacies. This is another way that we have expanded our goods and services to meet the evolving needs of our customers. We are committed to providing our customers with convenient and affordable healthcare, providing a wide range of vitamins, supplements, sports nutrition, self-medication, medical services clinics and a dispensary.
	Boxer Superstores is a full-service supermarket, offering a wide range of groceries. The fresh produce offering is complemented by an in-store butchery, bakery and hot foods counter. Our target market is the lower- to middle-income communities of South Africa and Swaziland and as such, price and convenience is absolutely crucial for our customers. Boxer Superstores is known for being the price-fighting champion of the people, as our customers increasingly look for value and promotion. All our stores are located close to public transportation routes to cater for our customers travelling needs and our stores have a welcoming market-style atmosphere.
	Punch Stores is a smaller sized supermarket offering. These stores are located at smaller sites that have a lot of customer foot traffic around them. The store has low-expense overheads, enabling the business to further reduce the selling prices of products on shelf. Punch Stores offer customers low prices on key lines which satisfies the demand that exists within the targeted customer base. Our focused product range includes local produce, pre-packed meat; and a limited range of breads and confectionery.
	Boxer Build stocks a diversified range of building and hardware supplies that provide the home owner and builder with all their building, DIY and home-improvement products at the most competitive prices. Boxer Build offers customers a savings card and access to short-term credit facilities. Transport for purchased products can also be arranged at store level. These builders’ hardware outlets are located in the Eastern Cape and KwaZulu-Natal provinces.
	Boxer Superliquors stores are situated close to our supermarkets, but with a separate entrance, as South African liquor laws do not allow for alcohol (other than wine) to be sold in supermarkets. Our liquor stores provide customers with the added convenience of purchasing alcohol at the same time as doing their grocery shop. Boxer Superliquors carry a focused range of basic alcoholic beverages which are sold at competitive prices. Ice is available on-site.