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
Social and relationship
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.
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
a national brand
Rest of Africa – a second engine of growth
Raymond Ackerman purchased
the first four Pick n Pay stores in
Cape Town, South Africa in 1967.
Since then the Group's vision has
grown and expanded to encompass
stores in South Africa, Namibia,
Botswana, Zambia, Swaziland
and Lesotho. In addition,
Pick n Pay owns a 49% share
of Zimbabwean supermarket
chain, TM Supermarkets.
Pick n Pay is a retail business in the fast-moving consumer goods industry on the African continent that believes doing good is good business. Pick n Pay operates through multiple store formats under two brands – Pick n Pay and Boxer – and we have the largest online grocery business in Africa.
We procure quality products at the best available prices. By operating a lean and efficient business, supported by a strong and talented team, we are able to provide our customers with a tailored range of high-quality food, grocery and general merchandise products at competitive prices.
Through ongoing investment in the customer offer, we are able to drive sales and grow value for all our stakeholders. For further information on our business model and the value we create, refer to pages 20 to 23.
More than 400 000
OUR COMMITMENT TO CONSUMER SOVEREIGNTY
We keep customers at the heart of our business. This philosophy informs everything we do, from how we treat our customers, to the product range we offer, and how we design our stores. Putting the customer first means we work hard to understand their diverse and changing needs and how we can serve them better. Through our Pick n Pay and Boxer brands, the Group serves customers across the diverse spectrum of South African society, and is expanding its reach into the African continent. More than half of all South Africans shop regularly in our stores and we have some of the most loyal customers in the country.
OUTSTANDING STORES AND FLEXIBLE FORMATS
The Group operates on both an owned and franchise basis and has 1 685 stores across all formats, including its investment in TM Supermarkets in Zimbabwe. Our store formats range from large hypermarkets, where customers can buy everything under one roof, through to small convenience stores, where customers can shop quickly for their immediate needs. In addition, our online platform, gives customers the opportunity to shop from their homes and have their order delivered to their door in one-hour time slots.
OUR LEADING CUSTOMER OFFER
Our customer offer focuses on food, non-edible groceries, health and beauty products, clothing, liquor, pharmaceuticals, building and hardware and general merchandise. The offer also includes value-added services such as third-party bill payments, ticketing services and financial transactions at till points. In addition to manufacturer-branded products, we have a growing own-brand range, in both Pick n Pay and Boxer, to suit every customer's budget. We are focused on delivering good quality at great prices and we appeal broadly across all sectors of society. We seek to move hand-in-hand with the changing needs and aspirations of our customers.
OUR WINNING TEAM
We employ 52 000 people in our company-owned stores and operations. Our franchise stores extend this to 85 000 people working under the Pick n Pay and Boxer banners in seven countries. Working at Pick n Pay is more than a job; it is an opportunity to learn, develop new skills and benefit through teamwork. We are committed to training, developing and empowering our people.
OUR FOCUS ON BUSINESS EFFICIENCY
Greater operating efficiency provides headroom for us to invest in improving the customer experience. We work in partnership with suppliers and service providers to provide value and convenience for our customers. The scale of our business allows us to give our suppliers sufficient volume so that they can plan and manage their operations to reduce costs. We procure, transport, store and display our products as efficiently as possible to keep costs to a minimum. Our focus on centralisation across all areas of the business has increased our business efficiency.
The Group benefits from an outstanding information technology infrastructure, with an end-to-end SAP system, which allows for automated and centralised processing, including the forecast and replenishment of inventory. Our point-of-sale system ably supports our Brand Match campaign, personalised discount vouchers, and has contributed to our Smart Shopper loyalty programme being voted South Africa's favourite loyalty programme for the past five years.
OUR VISION TO BE A TRULY AFRICAN RETAILER
Pick n Pay has 144 stores outside South Africa, which generated segmental revenue of R4.6 billion this year and contributed meaningfully to our profits. We tailor our ownership model in each country to what is appropriate for the local market, whether establishing owned stores, franchised stores or a part-investment in an independent operation. With established operations in Botswana, Lesotho, Namibia, Swaziland, Zambia and Zimbabwe, the Group is working on plans to bring Pick n Pay to Nigeria over the next two years.
A GROWING CENTRALISED SUPPLY CHAIN
The Group operates 12 distribution centres across the country catering for groceries, fresh and perishable produce, and clothing. Our two largest distribution centres are Longmeadow in Gauteng and Philippi in the Western Cape, both distributing fresh produce, perishables and groceries.
OUR BELIEF THAT DOING GOOD IS GOOD BUSINESS
Customers reward those businesses that they believe are at the heart of society and who give back to the communities they serve. As customers reward us with their loyalty, we are able to grow, serve more customers, generate more jobs, and help more communities – whether by supporting communities or groups during times of crisis, helping to develop local suppliers and small businesses, or tackling societal challenges such as obesity and climate change.
Our belief that doing good is good business ensures that we are focused not only on creating value for our shareholders, but for all our stakeholders. For over five decades Pick n Pay has played a valuable role in the economic and social development of Southern Africa. We make a positive direct contribution to the communities we serve through the supply of high-quality, affordable food, clothing and merchandise, and provide significant employment and economic opportunity across our value chain. We add to this value through our comprehensive sustainability strategy, which is inextricably linked to our business strategy. The infographic below illustrates how our sustainability strategy is aligned with our stakeholder needs and with the seven United Nations Sustainable Development Goals (SDGs) most relevant to our business.
For more detail on our business model and the value we have created, please refer to pages 20 to 23.
Read more about the seven SDGs and our sustainable business focus areas in our Sustainable Living Report, online.
Pick n Pay is a much-loved brand,
valued within society, 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. Our strong and unique
family values have guided the
business for more than
50 years, providing a solid
foundation for growth, innovation,
service excellence and generosity.