Engaging with our stakeholders

The Group’s ability to create long-term sustainable value depends on open and constructive engagement with all our stakeholders.

Stakeholders are parties that can affect, or be affected by, our activities, objectives and policies. We identify key stakeholders through ongoing engagement with individuals, groups and organisations. In this section we detail our engagement with these stakeholders, focusing on those that have either a significant interest in the operations of the Group or significant influence over the way we do business and create value.


Customers We are accountable to those we serve. Our customers are at the heart of our strategy and we engage to respond to their changing needs, strengthen our offer and drive sales.

HOW WE ENGAGE


  • Smart Shopper loyalty programme
  • Daily engagements in-store
  • Dedicated customer director
  • Customer care line
  • One-on-one meetings
  • Regular customer surveys, forums and panel discussions
  • Social media platforms
WHAT OUR CUSTOMERS TELL US IS MOST IMPORTANT TO THEM
  • Low prices, good value
  • Product quality and food safety
  • Consistently good availability
  • Convenience
  • Great stores and service
  • Rewards for loyalty
  • Community involvement
HOW OUR STRATEGY RESPONDS TO CUSTOMERS’ NEEDS
  • Great prices and promotions
  • Leading product range, with more own brand
  • Effective supply chain
  • Convenient store locations
  • Modern stores through a strong refurbishment programme
  • Customer-focused staff training
  • South Africa’s favourite loyalty programme
  • More value-added services, including a competitive financial services offer
  • Being a “force for good” in the communities we serve

Communities Our success depends on the well-being of the communities we serve. We engage with them to provide meaningful support and create opportunities for sustainable economic growth that benefits all.

HOW WE ENGAGE


  • Forums such as township cooperatives, university partnerships and the Pick n Pay School Club
  • Individual stores’ varied social responsibility programmes
  • Small-business development initiatives
  • We commit to helping our communities in times of crisis and need
  • Collaboration with the Ackerman Pick n Pay Enterprise Development Fund, including community enterprise development and food security initiatives
  • Engagement with customers in respect of their environmental concerns, including our work on removing plastic from our business
WHAT OUR COMMUNITIES TELL US IS MOST IMPORTANT TO THEM
  • Job creation
  • Economic development and opportunity
  • Access to safe food at low prices
  • Poverty relief and community outreach programmes
  • Environmental consciousness
HOW OUR STRATEGY RESPONDS TO COMMUNITIES’ NEEDS
  • Being a “force for good” in our communities underpins all our strategic pillars
  • Environmentally and socially responsible business practices
  • Source from and develop diverse and ethical suppliers
  • Job creation through long-term sustainable growth
  • Promote healthy and sustainable living

Employees We are committed to building a winning team. We engage with our staff to communicate strategy and responsibilities, identify needs, recognise and reward good performance and hold each team member accountable for their contribution to the success of the Group.

HOW WE ENGAGE


  • Regular management updates
  • Employee surveys
  • Monthly internal publications
  • Internal social media and interactive app
  • Skills development and training
  • Ongoing constructive engagement with labour unions
WHAT OUR EMPLOYEES TELL US IS MOST IMPORTANT TO THEM
  • Competitive remuneration and benefits
  • Training and career development
  • Fair and reasonable working hours, with certainty of hours and shifts
  • Sustainable business performance
  • Wellness programmes and work-life balance
  • Working for a responsible and ethical corporate citizen
HOW OUR STRATEGY RESPONDS TO EMPLOYEES’ NEEDS
  • Our strategy includes a focus on building South Africa’s most talented retail business
  • Our remuneration policy drives fair and competitive remuneration and the recognition and development of talent
  • We provide numerous training and development programmes to upskill our staff
  • We are building a lean and effective organisational structure for the benefit of all
  • We advance employee opportunity and diversity

Franchisees Our 719 franchise stores are an integral part of the Group, and the success of the franchise model depends on the success of our franchise partners. We engage to find mutually beneficial and sustainable growth opportunities, build our scale and extend our reach.

HOW WE ENGAGE


  • Store visits by franchise management team and service area consultants
  • Regular meetings with regional operational teams and national franchise representatives
  • CSI programmes in the communities in which our franchisees operate
  • Franchise conferences
WHAT OUR FRANCHISEES TELL US IS MOST IMPORTANT TO THEM
  • The opportunity to build a profitable and sustainable business
  • Security and sustainability of supply
  • Timely delivery of products, competitive pricing, product innovation, marketing support, quality of products and food safety
  • Opportunities for cost reduction
  • Resource efficiency (energy, water, waste, logistics)
  • Transformation and enterprise development
HOW OUR STRATEGY RESPONDS TO FRANCHISEES’ NEEDS
  • Pick n Pay offers one of the most successful and mutually beneficial franchise models in the retail industry
  • Operating as a sustainable franchisor of choice for almost 25 years
  • Flexible model, committed to supporting start-up businesses, smaller formats, or those struggling in tough trading environments, including through management and administrative support

Suppliers We are supported by a broad network of suppliers and service providers. We engage to source high-quality products at the best price and ensure food safety, sustainable and ethical business practices, innovation and consistent on-shelf availability.

HOW WE ENGAGE


  • Fact-based negotiation as part of our Buy Better programme
  • Regular meetings in line with merchandise cycle timelines
  • Direct engagement at an executive level
  • Regular food safety audits at production facilities
  • Ongoing store visits with suppliers
  • Joint business planning sessions
  • Supplier conferences
  • Dedicated enterprise development programme
WHAT OUR SUPPLIERS TELL US IS MOST IMPORTANT TO THEM
  • Fair pricing and transparent negotiation
  • Effective and efficient administration
  • Sustainable business partnerships
  • Research and development support, transparent agreements, logistical support
  • Opportunities for cost reduction
  • Transformation and enterprise development
  • Resource efficiency (energy, water, waste, logistics)
HOW OUR STRATEGY RESPONDS TO SUPPLIERS’ NEEDS
  • Building fair, efficient and mutually beneficial business relationships
  • Developing a cost-effective and efficient supply chain
  • Product innovation to meet evolving customer needs
  • Continual development of small businesses and diverse and ethical suppliers
  • Pick n Pay Fast Pay – key banking partners provide competitive funding to participating suppliers for the early settlement of invoices
  • Contribute to job creation

Shareholders We engage with the investment community to provide a comprehensive, consistent and well understood investment case. This ensures that our shareholders can make informed investment decisions and that our share trades at a fair value.

HOW WE ENGAGE


  • At least four formal engagements a year: two financial results presentations, one AGM and an investor day/strategic update
  • Regular engagement with investors, analysts and fund managers
  • Direct engagement on proposed resolutions prior to annual and general meetings
  • Dedicated investor relations team and investor website at www.picknpayinvestor.co.za
WHAT OUR SHAREHOLDERS TELL US IS MOST IMPORTANT TO THEM
  • Improved and sustainable return on investment
  • Understanding our business model, strategic direction and profit drivers
  • Access to timely, accurate, transparent and relevant information
  • Sufficient free float of shares for trade
  • Good corporate governance
  • A socially responsible and ethical corporate citizen
HOW OUR STRATEGY RESPONDS TO SHAREHOLDERS’ NEEDS
  • Generate consistent returns in a sustainable manner
  • Operate according to the highest corporate governance principles
  • Follow innovative business practices at acceptable levels of risk
  • Capital efficiency
  • Provide attractive returns on investment