Our six capitals
Our ability to create long-term sustainable value for stakeholders
depends on the use of various capitals within our business. The
International Integrated Reporting
Financial
Human
Manufactured
Social and relationship
Intellectual
Natural
Our key stakeholders
The Group is committed to open and constructive engagement with all our stakeholders. Our business model and strategy are designed to consider and address the issues and concerns most relevant to our key stakeholders. Refer to the "Engaging with our stakeholders" section on pages 38 to 41 for more information.
Customers
Community
Employees
Suppliers
Franchisees
Shareholders
Our business acceleration pillars
The second stage of our strategic long-term plan is organised around seven business acceleration pillars. These pillars represent the material growth opportunities that can materially affect our ability to create value over the short, medium and long term. Refer to our "Strategic focus" section on pages 44 to 51 for more information.
Better for customers
A flexible and winning estate
Efficient and effective operations
Every product, every day
A winning team
Boxer–
a national brand
Rest of Africa – a second engine of growth
Our expansion programme is focused on growing the business by opening stores that reflect the changing habits and
needs of our customers and which will bring new customers and communities into the Pick n Pay family.
| COMPANY OWNED | 26 February 2017 |
Opened | Closed | Converted openings |
Converted closures |
25 February 2018 |
||
| Pick n Pay | 661 | 72 | (13) | 4 | (2) | 722 | ||
| Hypermarkets | 20 | – | – | – | – | 20 | ||
| Supermarkets | 237 | 10 | (2) | 1 | (2) | 244 | ||
| Local | 31 | 9 | (3) | 1 | – | 38 | ||
| Clothing – standalone | 156 | 29 | (2) | – | – | 183 | ||
| Liquor | 214 | 24 | (5) | 2 | – | 235 | ||
| Pharmacy – standalone | 3 | – | (1) | – | – | 2 | ||
| Boxer | 229 | 22 | (5) | 1 | (1) | 246 | ||
| Superstores | 144 | 10 | (1) | – | (1) | 152 | ||
| Build | 31 | 3 | (3) | – | – | 31 | ||
| Liquor | 34 | 9 | – | – | – | 43 | ||
| Punch | 20 | – | (1) | 1 | – | 20 | ||
| Total company owned | 890 | 94 | (18) | 5 | (3) | 968 |
| FRANCHISE | 26 February 2017 |
Opened | Closed | Converted openings |
Converted closures |
25 February 2018 |
||
| Pick n Pay | ||||||||
| Supermarkets | 299 | 7 | (7) | 2 | (2) | 299 | ||
| Family | 279 | 7 | (5) | 2 | (2) | 281 | ||
| Mini-markets | 19 | – | (2) | – | – | 17 | ||
| Daily | 1 | – | – | – | – | 1 | ||
| Spaza | 6 | 8 | – | – | – | 14 | ||
| Express | 111 | 9 | (1) | – | – | 119 | ||
| Clothing – standalone | 17 | – | – | – | – | 17 | ||
| Liquor | 181 | 35 | (3) | – | (2) | 211 | ||
| Total franchise | 614 | 59 | (11) | 2 | (4) | 660 |
| GROUP | 26 February 2017 |
Opened | Closed | Converted openings |
Converted closures |
25 February 2018 |
||
| Total Group stores | 1 504 | 153 | (29) | 7 | (7) | 1 628 | ||
| TM Supermarkets – associate | 56 | 1 | – | – | – | 57 | ||
| Total with TM Supermarkets | 1 560 | 154 | (29) | 7 | (7) | 1 685 |
| REST OF AFRICA FOOTPRINT | 26 February 2017 |
Opened | Closed | 25 February 2018 |
||
| – included in total stores | 140 | 6 | (2) | 144 | ||
| Pick n Pay company owned | 17 | – | – | 17 | ||
| Boxer company owned | 5 | 2 | – | 7 | ||
| Pick n Pay franchise | 62 | 3 | (2) | 63 | ||
| TM Supermarkets – associate | 56 | 1 | – | 57 | ||
| – by country | 140 | 6 | (2) | 144 | ||
| Botswana | 12 | – | – | 12 | ||
| Lesotho | 3 | – | – | 3 | ||
| Namibia | 38 | 2 | (2) | 38 | ||
| Swaziland | 14 | 3 | – | 17 | ||
| Zambia | 17 | – | – | 17 | ||
| Zimbabwe | 56 | 1 | – | 57 |
The Group is intent on being the retailer of choice for all the communities it serves.
1 541 stores
57 stores
38 stores
17 stores
12 stores
17 stores
3 stores
Planned expansion
Opportunity for expansion
Across all formats
and seven countries,
including our investment
in TM Supermarkets
STORES in Zimbabwe.
Pick n Pay is a multi-format,
multi-channel retailer with a strong
and diverse portfolio of stores.
Pick n Pay is an inclusive brand, not aimed at serving a single customer demographic, but focused on being the retailer for all – from the most affluent in society to those who are less fortunate and for whom price is of the utmost importance. The middle-income South African consumer, however, makes up the largest portion of our customer base. Pick n Pay operates on both an owned and franchise basis, providing a wide range of products and value-added services, and includes an online offering. Pick n Pay is focused on delivering an exceptional customer offer, including range, quality, price, availability and service. Pick n Pay has a strong growth plan, benefiting from the flexibility of its formats and its leaner operating model, and will focus on bringing its offer to communities where we are not yet well represented, including through small convenience stores.
Seven
Nine
1 382
7
543
(244 owned, 299 franchise)
3 000
17
Pick n Pay supermarkets offer a wide range of groceries, as well as a targeted range of clothing, general merchandise and value-added services. Customers can buy everything they need, from a quick daily top-up to a larger weekly or monthly bulk shop. Fresh produce and butchery offerings are complemented by an in-store bakery, deli and hot food counter. Pick n Pay supermarkets serve a wide range of communities, from lower and middle-income families to the most affluent households. Product ranges are tailored to meet the needs of customers. Some stores focus on basic necessities and local produce while others boast specialty service counters, wine rooms, flower markets and sushi bars. Pick n Pay supermarkets trade under the Pick n Pay, Family, Daily and Mini-market banners.
South Africa
20
15 000
Pick n Pay’s largest format store, providing customers with an expanded range of groceries, clothing, liquor and general merchandise. A hypermarket is a “one-stop shop” offering fresh produce, a butchery, deli, bakery and hot food counter, plus specialist categories not always available in a supermarket, such as appliances, kitchenware, home improvement, garden and pool accessories, toys and an expanded health and beauty range. These retail sites are large, catering for destination shoppers, with wide aisles and ample parking. Prices are very competitive, leaning towards multi-pack and bulk-buy items and a wholesale offering.
South Africa
38
1 000
9
Pick n Pay Local stores offer neighbourhood convenience, serving a range of communities, focused on lower and middle-income families. A Local store has a much smaller range than a traditional supermarket, tailored specifically to the community it serves. The range is focused on fresh and convenience, and can include a bakery and butchery. Customers can pop in quickly for a daily top-up, but can still choose from a tailored grocery and general merchandise offer for a larger weekly shop.
South Africa
119
300
9
Pick n Pay’s partnership with BP, one of the world’s leading international oil and gas companies, provides small 24-hour Pick n Pay Express convenience stores on BP service station forecourts in South Africa. Pick n Pay Express offers a targeted convenience range that satisfies an immediate top-up shop or a quick meal solution. The range is limited and is mainly focused on daily needs. These sites are located in high-traffic-flow areas, including high-density residential areas and public transport intersections.
4
200
(183 owned, 17 franchise)
450
29
Pick n Pay Clothing provides the whole family with quality, fashionable clothing and footwear at exceptional prices. Our clothing offer is broad, from baby and children’s wear to men’s and ladies’ fashion – including casual wear, sleepwear, active wear and more formal attire. Our own brand, Real, 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 clothing merchandise as our hypermarkets and supermarkets, but with an extended range.
South Africa
24 hours
one-hour
delivery slot
Our online shopping platform at www.pnp.co.za is a small but growing part of the Pick n Pay business. Pick n Pay is the largest online grocery retailer in Africa. The division is winning customers by offering online convenience, good availability and delivery in one-hour time slots. The online offer in the Western Cape and Gauteng has been expanded through the establishment of dedicated online picking warehouses.
6
446
(235 owned, 211 franchise)
200
59
Our liquor stores are situated close to our supermarkets and hypermarkets but with separate entrances. These stores offer a range of wine, spirits and beer, including trendy and innovative local craft products. These liquor stores provide customers with the added convenience of purchasing liquor at the same time as doing their grocery shopping.
South Africa
29
(26 owned, 3 franchise)
2
We are committed to giving our customers convenient and affordable basic healthcare by providing a wide range of vitamins, supplements, sports nutrition, self-medication, medical services, clinics and dispensaries.
South Africa
14
(26 owned, 3 franchise)
70 – 300
8
Our “Spaza-to-Store” partnership with the Gauteng Government’s Department of Economic Development provides spaza shop owners with access to Pick n Pay’s procurement and distribution channel, business systems and technology and management advice and mentoring. Our partnership with spaza entrepreneurs across Gauteng and the Western Cape has revitalised and modernised their stores and delivered strong growth.
Boxer is fast becoming
South Africa’s leading limited-
range discount supermarket.
Our Boxer stores provide a “one-stop shop” for middle to lower-income shoppers in South Africa and Swaziland.
Boxer offers a tight range of quality products and services at very affordable prices. Stores offer essential daily commodities such as maize meal, rice, samp, sugar, oil and beans, as well as perishables, health and beauty, general merchandise and bulk-buy offers. The stores also offer fruit and vegetables, butcheries, bakeries and deli sections providing a choice of prepared convenience meals.
There are no franchise stores under this brand. While Boxer has reach across all nine provinces in South Africa, its geographical heartland is KwaZulu-Natal and the Eastern Cape. Boxer will continue to grow and expand in areas where the Group knows it can serve the needs of communities through its wide product range, affordable prices and community-rooted staff.
South Africa
and Swaziland
Four
246
South Africa and Swaziland
152
1 850
10
Boxer Superstores are full-service supermarkets offering a focused range of groceries. The fresh produce offering is complemented by an in-store butchery, bakery and hot foods counter. The target markets are middle to lower-income urban, peri-urban and rural communities of South Africa and Swaziland. All stores are located close to public transportation hubs and have a welcoming market-style atmosphere.
South Africa
20
400
Boxer Punch is a smaller-sized supermarket located in compact sites that have considerable customer foot traffic. The store has a lower-cost operating model, enabling the business to further reduce the selling prices of products. Boxer Punch stores offer a limited but specific range of convenience products, including basic commodities, prepacked frozen and fresh meat, and a limited range of breads and confectionery.
South Africa
31
550
3
Boxer Build stocks a diversified range of building and hardware supplies, satisfying home owners’ and builders’ DIY and home improvement needs at the most competitive prices. Boxer Build stores offer savings cards and access to short-term credit facilities. Delivery of purchases can also be arranged at store level.
South Africa
and Swaziland
43
185
9
Boxer Liquor stores are situated close to Boxer supermarkets, but with separate entrances. These liquor stores provide customers with the added convenience of purchasing liquor at the same time as doing their grocery shopping.
The Group has a 49% investment
in its associate TM Supermarkets
in Zimbabwe.
TM Supermarkets, trading under TM and
Pick n Pay, is one of the most trusted
retailers in Zimbabwe. With its pay-off
line “Real Value Always”, customers are
offered a wide range of groceries and
perishables, with a limited range of general
merchandise and a fresh offering that
caters specifically for the communities
they serve, at competitive prices.
TM Supermarkets draws its customers
from all communities and income groups
across Zimbabwe, while store formats
range from convenient small supermarkets
to larger supermarkets.
57
40
17
