Pick n Pay’s Essay

What is your strategy to reverse natural selection n pay offs injustice of securities industry share? Pick n Pay lost securities industry share in part because it opened materially less lacuna than some of its major competitors. A significant proportion of its capex was invested in total chain technology infrastructure in recent years, which by its spirit doesnt drive gross sales compared to stores. Our capital focus is now on new stores and refurbishment, which go forth drive sales and, in metre, profitability. Over the by year we nominate refreshed, without substantively altering our strategy. Our overarching ambition is for the Group to become the retailer of choice for all sulfur Africans. This builds on Pick n Pay and Boxers brand strength and strong store portfolio. significantly this refreshed strategy does not represent a major deflection from the strategy that has been followed for the ult five years.We have seven themes geared to assure that the business ca n grow sustainably and profitably. There is a balance of growth-driven priorities, commission on quadruplet, customer, franchise and product, and those largely focused on improving capability such as replenishment and store operations. The One Pick n Pay initiative ties these together to ensure that the business works well(p) as a unified whole.Strategic antecedence Grow merchandising space ahead of the marketThere is substantial competition for retail space both within South Africa and in other African markets. Ensuring that Pick n Pay increases its overall share of trading space over the long term is an important strategic priority. Over the past three years our space growth has lagged that of our competition particularly into the scurrying growing lower income areas and small stores. This not only reign overly reduces our market share but in any case puts pressure on like-for-like sales growth. We will continue to develop store formats and channels that meet customers cha nging needfully both in Pick n Pay and Boxer, in South Africa and beyond. Additionally we continue to build a pipeline of new sites, whether greenfield or through acquisition that will ensure we meet our aspirations.Strategic priority Build deep customer relationshipsThe launch of our customer rewards programme Smartshopper gives us asignificant opportunity to get to know our customers shopping habits and preferences advantageously better than we do today. Since its launch in March 2011 the programme has been a great success. After just one year we now have over five million active cardholders, exceeding our initial manoeuver by two million. This enables us not only to know and show all(prenominal) customer a great deal better, but to communicate with our customers in a different and more engaging manner.We have direct access to the vast majority of Smartshopper customers by either sms or email, which mover that we can send targeted marketing communications directly to them. We can also ask for feedback directly from them. All of this translates into a very valuable nonpartisan dialogue with our customers. As a result we are designing and writ of execution marketing campaigns which are more relevant to our customers. We are extracting insights from their shopping habits info in order to tailor our product ranges and more accurately perform them. All of this will assist us in growing our sales volumes significantly.Strategic priority Revolutionise Pick n Pays product offer During the past 12 months we have invested considerable time and resources in construction a single specialised course of study purchasing division. Prior to the establishment of this division, Pick n Pays sourcing activities were distributed crosswise the operating regions. This led to fragmentation of the Groups buying scale, with each buyer having a wide range of products to source. Our new specialised category buying division is made up of category teams each of which is res ponsible for the end-to-end profitability of a specific product category. They are tasked with evolution a product range that meets all customer needs, sourcing those products at the last possible cost, constructing shelf layouts that help customers find what they are looking for easily, building a promotional plan that generates customer excitement, increased volumes and higher margins, and ensuring that Pick n Pays prices remain highly competitive. Included in their responsibilities is the task of improving our Pick n Pay branded offer.