Integrated

Annual Report

2018


NAVIGATING OUR REPORTING SUITE

NAVIGATING OUR REPORTING SUITE

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 <IR> Framework supports integrated financial reporting, and, in particular, the reporting of the Group's business model across these six forms of capital. Refer to "Our business model" on pages 20 to 21 for more information.

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


Previous

CASE STUDY: FROM SPAZA TO STORE

14
PARTNER
STORES

The Pick n Pay franchise model is an effective route
for emerging entrepreneurs to create and build their
own businesses, leveraging the buying, distribution
and system infrastructure of Pick n Pay, as well as
benefiting from tailored mentoring and business advice.


  • Our Glenridge Spaza store can
    be found on a busy intersection in
    Soweto. We have brought shopping
    into the very heart of the community.
    By doing so we have cut the cost
    of travel – allowing community
    members to spend more
    on food and necessities.

  • Since 2016, Pick n Pay has led a collaborative partnership with Government and other strategic partners to help revitalise small, independent township grocers to regenerate their stores and turn them into thriving neighbourhood convenience stores.

    The neighbourhood convenience format is one of the fastest-growing grocery retail formats worldwide, and a spaza shop is essentially such a format. By bringing together the benefits of our supply chain, systems capability, value-added services and loyalty programme in partnership with a spaza owner’s local knowledge of the needs of customers in the neighbourhood, we are able to bring something special to customers – state-of-the-art grocery retailing in an extremely convenient neighbourhood location. Importantly, we are helping neighbour customers access the goods they need close to home, which reduces the need to travel for their shop.

    Our first pilot store opened in February 2016 and we now have 14 Spaza partners across townships in Gauteng and the Western Cape. Each revitalised store has received a great response from its surrounding community, with strong earnings and profit growth. Successful township businesses help the broader community by creating jobs and encouraging the development of a wide range of skills, including technology and customer service, as well as specific retail skills in butchery, bakery and other areas. The project is in its infancy, but it gives small traders the opportunity to become successful and sustainable business owners and provides Pick n Pay an important opportunity to play a positive role in growing the informal retail market in South Africa.