Current Edition >> Archives Section >> Leading Stories >> 16-31 May 2006

Shoprite - a while new ball game - taking it to the communities

In line with the positioning of the Shoprite Group of Companies as the largest food retailer on the African continent, Shoprite in the central region of South Africa is bringing in a whole new ball game – taking supermarkets to the communities. So says the Divisional Manager for Shoprite in central South Africa, Jaco de Swardt.
The focus of the Shoprite brand is on the lower income segment of the public consumer market, offering quality food products, especially fresh produce and value-added products in a high standard but no-frills shopping environment at most competitive prices. New strongly added on to this, Shoprite is extending purposefully its strategy of opening up and establishing stores in traditional black community residential areas. This is indeed a new concept in South Africa and Lesotho, with resulting reverberating positive spin-offs.
It is pointed out by De Swardt that the low-price policy is being realized by continuously finding ways to reduce costs in the supply chain. The Group buys in bulk directly from both local and overseas manufacturers, cutting out the middle-man and operating technologically advanced distribution centres.
This is being complemented by offering the lowest prices by regular special offers and by the cheapest monthly shopping bill. Backed by leading-edge technology, consumers are offered clean and hygienic stores, as well as a modern store layout to ensure fast and efficient service, contributing to a memorable shopping experience.
According to De Swardt the basic objective of the Shoprite brand in the central region of South Africa, covering the Free State, Northern Cape, Lesotho, part of North West province and Botswana, is to expand their positioning in their respective target markets as the preferred brands.
In support of this, Shoprite has a strong decentralised regional office in Bloemfontein. There are altogether 25 Shoprite stores in the central region of Southern Africa. As for Shoprite in the central region, the policy is foremost to establish new stores in residential areas where the company has hitherto not done business

Already in Mangaung
The first Shoprite to be opened in a predominantly black residential area in the Free State, was in Rocklands, Mangaung, at 83621 Moshoeshoe Road. Covering a floor space of some 2 000 m², Shoprite Mangaung provides job to 105 people.
The store, extemely clean and with very friendly staff, is open from 08:00 - 20:00 Mondays to Saturdays. Staff also assist customers in getting their shopping items from the store to the taxi rank. On Wednesdays the store provides old aged people with a cup of soup.
The Mangaung outlet is indeed a model Shoprite store offering inter alia the following specialist departments: Deli / Bakery / Fruit & veg / Fish - fresh and cooked / Butchery / Dairy products / Perishables / Plus a host of other food and household items, including even paints.
In addition, the money market sections of all Shoprite stores render the following services for customers' one-stop convenience: Telephone and electricity account payment / Cellphone and phone card purchases / Airtime and starter packs / Gift voucher purchases / Bus ticket purchases – Translux, City to City, Intercape, Greyhound, etc. / Christmas stamps / and Home choice payments.

New stores in Lesotho
The second of the two stores in Maseru was extensively upgraded and relaunched in September 2005, comprising now floor space of 2 200 m² and employing 64 permanent and 73 part-time personnel, together with assistants in training.
At the occasion, De Swardt said : “The refurbishment and improvement of the store in the business complex is further proof of the Shoprite chain of supermarkets' commitment to establish an infrastructure that suits the community and to place services and products within easy reach of its customers, at lower prices………..always!”
On 28 April 2006 Shoprite took it yet a step further in Lesotho with the opening of a third Shoprite store at Leribe – floor space 1 500 m² and employing 85 people.

Botshabelo next Next on the list is the opening of Shoprite in Botshabelo on Thursday, 25 May 2006 – at 5 Stand Street, Fourways Centre.
The planned floor space is 1 800 m² and the store is to employ 87 personnel.
This is another milestone for Shoprite and would no doubt constitute a breakthrough for consumer service in Botshabelo.

Contributing to regional economy
According to De Swardt, the substantial contribution which the Shoprite Group is making to the economy in the central region of South Africa is clear from facts and figures regarding jobs being created, salary spent, opportunities to suppliers, contractors, and sub-contractors, money turnover generated, etc.
Another facet is skills development, particularly in-service training of employees. Shoprite has in fact currently a drive underway to identify managerial material amongst its employees and to develop this to maximum potential. In this the focus is sharply on black economic empowerment, the company being fully compliant with government legislation and guidelines. De Swardt mentions, however, that for Shoprite, merit remains the cornerstone for consideration of candidates.

Community development
De Swardt also mentions the huge involvement by Shoprite in local community development, such as nutrition schemes for schools, hospitals, HIV/AIDS support centres, institutions for the aged and the disabled, sports sponsorships, etc.

Consumer / customer first
In summary, De Swardt says that, in line with corporate policy, it all revolves in the central region around offering the consumer – the Shoprite consumer – the best under the most pleasant conditions at the lowest price. At the same time the Group, inextricably linked to also central Southern Africa, contributes to the nurturing of stable economies and the social upliftment of people in the region.
As the managing director of the Shoprite Group, Mr. Whitey Basson is often quoted : “In business there are two types of people: Innovators and imitators. Innovators constantly seek ways of improving both the quality of the product they sell and most importantly, the quality of the service they provide. Imitators merely cope – with no prize for second place.”

Exciting new money transfer at Shoprite stores
The Shoprite Group has just announced that as an additional facility it now offers money transfer services to enable its shoppers to send funds from one supermarket to another across the country. For this a flat fee of R9.99, regardless of the amount sent, is charged.
This is to be compared with the minimum amount being levied by some banks of R13 for amounts of up to R100, while the maximum ranged from R55 to R100 for amounts up to R5 000.
Reserve Bank regulations stipulate that the maximum amount that may be transferred by any person is R5 000 a day and R25 000 a month.