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Why do
we engage? |
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- Listening and responding to customer feedback, both positive and negative, helps us to improve our customer offer
- By responding to the changing needs of our customers we are able to provide them with new reasons to shop with us, supporting sustainable revenue growth
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- The success and wellbeing of the communities in which we trade ultimately affects the success and wellbeing of our stores
- Local communities engage with those businesses that engage with them, promoting the sustainability of both
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- To get the best out of our team (and in turn be able to deliver the best to our customers) we actively and regularly engage with our employees on strategy, key performance indicators, financial performance and the role we expect each individual employee to play in our business
- To identify and recognise good performance, to provide training and development and to hold each team member accountable for the job they do
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- Our franchise stores are an important part of the Pick n Pay business, adding significantly to our scale and brand reach
- Our franchise model only works when our franchisees have opportunities to succeed and have an active voice in the business
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- To provide our shareholders with a comprehensive, transparent and objective understanding of the business so that our shares may trade at a fair value and that our shareholders are aware of the risks and opportunities associated with investing in the Group
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- To ensure that we are able to source a leading range of high-quality produce and merchandise at the best possible prices and that we can commit to on-shelf availability, food safety and sustainable and ethical business practices
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Our vision |
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- Convenient store locations within easy reach of all customers
- Leading product offer
- Great prices and promotions
- Excellent place to shop
- Wide array of useful, value-added services
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- Develop diverse and ethical suppliers
- Be environmentally responsible
- Do good in the local community
- Promote healthy and sustainable living
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- Meritocracy
- Most talented South African retail business
- Effective and lean organisational structure
- Advance employee opportunity and diversity
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- Offer the most successful mutually beneficial franchise model in the retail industry
- Operate as a sustainable franchisor of choice
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- Generate consistent profits in a sustainable manner
- Operate according to the highest corporate governance principles
- Follow innovative business practices at acceptable levels of risk
- Provide attractive returns on investment
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- To build fair, efficient and mutually beneficial business relationships
- An efficient supply chain
- Develop new products that meet evolving customer needs and environmental requirements
- Give new product innovation the best chance of success on-shelf, through visibility and availability
- Continual development of small businesses and diverse and ethical suppliers
- Contribute to job creation
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Our
stakeholders’
interests |
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- Product quality and food safety
- Product availability
- Good value for money
- Great service
- Convenient locations
- Opportunities to buy responsibly and ethically sourced food or to take part in in-store recycling opportunities
- Rewards for loyalty
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- Job creation
- Food safety
- Support for charity drives, community clean-ups and other local initiatives
- Environmental responsibility
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- Recognition, remuneration and rewards
- Training, career development and wellness programmes (including HIV/Aids education)
- Sustainable business performance
- Working for a responsible and ethical corporate citizen
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- Building a sustainable business
- Resource efficiency (energy, water, waste, logistics)
- Security and sustainability of supply, timely delivery of products, competitive pricing, product innovation, marketing support, quality of products and food safety
- Opportunities for cost reduction
- Transformation and enterprise development
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- Improved and sustainable return on investment
- Understanding our business model, strategic direction and profit drivers
- Access to timely, accurate and relevant information
- Sufficient free float of shares for trade
- Good corporate governance, including a balanced Board composition
- A socially responsible and ethical corporate citizen
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- Fair pricing, research and development support, transparent contracts and agreements, infrastructure and logistics support
- Opportunities for cost reduction
- Transformation and enterprise development
- Resource efficiency (energy, water, waste, logistics)
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Our
engagement |
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- Customer director provides a voice, for our customers, on the Board
- One-on-one meetings
- Regular customer surveys, consumer forums and online customer panels
- Website www.picknpay.co.za and social media
- Smart Shopper loyalty programme
- Through our store footprint and online
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- Forums such as township co-operatives, university partnerships and the Pick n Pay Schools Club
- Individual stores’ varied social responsibility programmes
- Collaboration with the Ackerman Pick n Pay Enterprise Development Fund, including income generation, community enterprise development and food security initiatives
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- Regular management updates
- Employee surveys
- Monthly internal publications
- In-house television and radio communications and employee conferences
- Skills development and training
- Ongoing engagement with unions
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- One-on-one relationships
- Regular store visits by franchise specialists and service area consultants
- Bi-monthly meetings between regional operational teams
- Bi-monthly CEO forum meetings with national franchise representatives
- CSI programmes in the communities in which our franchisees operate
- National conference
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- At least four formal engagements a year: two financial results presentations, AGM and investor day/strategic update
- CEO and CFO regularly engage with investors, analysts and fund managers
- Direct engagement on proposed resolutions prior to annual and extraordinary general meetings
- Focused investor relations section on www.picknpayinvestor.co.za
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- Regular food safety audits at production facilities
- Ongoing store visits with suppliers
- Joint business planning sessions
- Regular meetings in line with merchandise cycle timelines
- Supplier conferences
- Dedicated enterprise development programme
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Our
performance
in 2015 |
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- Customer engagements through our Customer Care line increased 5% to over 300 000
- Users of the Pick n Pay website rose 26%. We have the most popular Facebook presence for a South African retailer with over 1 million followers – up 40%
- Number of Smart Shopper vouchers redeemed increased by 68%
- Added key new partners to the Smart Shopper loyalty programme, including Ster Kinekor, U-Shaka, Spar, Ratanga Junction and Intercape buses
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- R44.6 million on various CSI initiatives
- Smart Shopper loyalty programme generated R2.2 million worth of points donated to charity by customers since inception
- Donated more than R25.0 million worth of food to FoodBank SA
- Donated more than R1.8 million of clothing to The Clothing Bank
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- Skills development and bursaries investment
up 16.7%
- Over 180 training programmes offered to employees
- Over 1 438 internal promotions, contributing to the career advancement of valued employees
- 18 participants in the Pick n Pay graduate programme
- CA(SA) training programme offered at Pick n Pay
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- Opened 61 franchise stores and closed four under-performing stores
- Franchise module tailored for the emerging market assisted franchisees trading in this environment with structured repayment of debt
- Improvement in impairment allowance of trade and other receivables of 71.4%
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- CEO, CFO and investor relations (IR) team held one-on-one meetings with shareholders in June and October 2014
- IR team held numerous meetings with investors, potential investors and analysts
- Investor day in February 2015 for our largest shareholders – showcasing progress at the Philippi Distribution Centre and the work of the new Retail Office at the Canal Walk store
- Participated in the Bank of America Merrill Lynch (BAML) Investor Conference in March 2015
- For our financial performance during the year, refer to the CFO report.
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- Annual supplier conference
- 2 370 health and safety audits
- During the year and through co-operation with the Ackerman Pick n Pay Enterprise Development Fund, 25 businesses and community enterprises benefited from the enterprise development programme, of which 12 are now suppliers
- Adding 90 suppliers to our centralised supply chain, increasing the level of central supply with 11% pts
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