shoprite in south africa: local profile, 2013 · shoprite in south africa: local profile, 2013...

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Company Profile

Shoprite in South Africa: Local Profile, 2013

Reference Code: RT0250LP

Published: October 2013

©Conlumino 2013 | This product is licensed and is not to be photocopied or reproduced. 2



Table of Contents

1. Introduction ....................................................................................................... 5

1.1 What is this Report About? ................................................................................................. 5

1.2 Scope ................................................................................................................................... 5

1.3 Methodology ....................................................................................................................... 5

2. Shoprite South Africa – Company Profile ............................................................ 7

2.1 Business Description ........................................................................................................... 7

2.2 Store Banners ...................................................................................................................... 8

2.3 Services.............................................................................................................................. 11

2.4 Private Labels .................................................................................................................... 11

3. Shoprite South Africa – Key Information ........................................................... 12

3.1 Financial Performance ...................................................................................................... 12

3.2 Operational Performance ................................................................................................. 13

3.2.1 Store Count ..................................................................................................................................... 13

3.2.2 Sales per Store ................................................................................................................................ 14

3.3 Key Employees .................................................................................................................. 15

4. Regulatory Encironment ................................................................................... 16

5. Shoprite South Africa – Corporate strategy ....................................................... 17

5.1 Focus on Expanding Store Presence to Improve Market Share ........................................ 17

6. Competitive Environment ................................................................................ 18

6.1 Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa .................... 18

6.2 Market Share of Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa 19

7. Investment and Expansion Plans of Competitors .............................................. 21

7.1 SPAR .................................................................................................................................. 21

7.2 Woolworths ....................................................................................................................... 21

8. Appendix ......................................................................................................... 22

8.1 Shoprite South Africa – News ........................................................................................... 22

8.2 Events and History ............................................................................................................ 23

8.3 About Conlumino .............................................................................................................. 25

8.4 Disclaimer .......................................................................................................................... 25




List of Figures

Figure 1: Shoprite store in South Africa .......................................................................................................................................................... 9 Figure 2: Checkers stores in South Africa .................................................................................................................................................... 10 Figure 3: Usave store in South Africa ........................................................................................................................................................... 10 Figure 4: Shoprite South Africa – Revenues (US$ Million), 2008–2012 ........................................................................................................ 12 Figure 5: Shoprite South Africa – Store Count, 2008–2012 .......................................................................................................................... 13 Figure 6: Shoprite South Africa – Sales Per Store (US$ Million), 2008–2012 ............................................................................................... 14 Figure 7: Market Share of Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa (%), 2012 ......................................... 20




List of Tables

Table 1: Ratio Definitions ............................................................................................................................................................................... 6 Table 2: Shoprite South Africa, Key Facts ...................................................................................................................................................... 7 Table 3: Shoprite South Africa, Store Banners ............................................................................................................................................... 8 Table 4: Shoprite, Private Labels ................................................................................................................................................................. 11 Table 5: Shoprite South Africa, Key Employees ........................................................................................................................................... 15 Table 6: Shoprite South Africa, Key Employee Biographies ......................................................................................................................... 15 Table 7: Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa .................................................................................... 18 Table 8: Market Share of Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa, 2012 ................................................. 19




1. Introduction

1.1 What is this Report About?

‘Shoprite in South Africa: Local Profile, 2013’ is a comprehensive report covering the company’s local

operations. It has an insightful strategic analysis of the company, and details of its history, news, and events.

The report is an essential tool to gain a detailed understanding of the company and obtain analysis of the

market and competitors, as well as internal and external factors that could impact the industry.

1.2 Scope

The report identifies and presents key information about Shoprite in South Africa. In addition, it describes its

local operations, and features company news and events.

Key points covered in the reports are:

• Store formats

• Products and services

• Financial performance

• Key employee biographies

• The market share of key competitors

• Investment plan of key competitors

Note: In this report ‘review period’ indicates 2008–2012.

1.3 Methodology

Conlumino local profiles are based on a core set of desk research techniques which ensure the best possible

level of quality and accuracy of data, specific to a particular country. This involves extensive research of

international, local and specialist trade sources and databases. Analysts review all the inputs and where

required triangulate inputs in order to produce final numbers. The key sources used include:

Country Specific Company Websites

Company Annual Reports

SEC Filings

Press Releases and Company Presentations

Regional Trade/Industry Associations, Trade Journals, Government Statistical Websites, and Stock

Exchanges

Notes

Company financial and operational information is taken from the published annual reports, press

releases, and company presentations




Local Revenue is converted to US$ at average annual conversion rates as of calendar year end

Table 1: Ratio Definitions

Ratios Definition Sales per Store Sales per Store measures the total sales generated-from each

store of the company. It is obtained by dividing the total revenues earned from store sales by the total stores in operation during the review period. Formula: Revenue / No. of Stores

Sales per Square Meter Sales per Square Meter measures the total sales generated-per-square meter of retail space. It is obtained by dividing the total revenues earned from store sales by the total area of retail space (in square meters) during the review period. Formula: Revenue / Retail Store Area ( sq. m)

Revenue per Employee Revenue per Employee measures the average revenue generated per employee of a company during the review period. Formula: Revenue / No. of Employees

Employee per Thousand Square Meter This ratio measures the total number of employees employed per 1,000 square meters of retail store space during the review period. Formula: No. of Employees / Retail Floor Space ('000 Sq. m)




2. Shoprite South Africa – Company Profile

2.1 Business Description

Shoprite is a South Africa based retailer, which started its business operations in its home country in xxxx by

acquiring a supermarket chain of eight stores in Cape Town for ZARXX million. Since then, the retailer

expanded its store presence in the country to a total of XXX hypermarkets, supermarkets, and hard-discounters,

as of June 30, 2013 (FY2012). The company primarily operates various store banners such as Shoprite and

Checkers in the country.

Note – the report only covers the retailer’s hypermarket and supermarket business segments.

Table 2: Shoprite South Africa, Key Facts

Headquarter

Founded

Total Sales (FY2012)

Number of Outlets (FY2012)

Channel

Source: Company Website and Conlumino © Conlumino




2.2 Store Banners

Shoprite operates banners like Shoprite and Checkers in the country.

Table 3: Shoprite South Africa, Store Banners

Store Banner 2012 Store Count Shoprite

Checkers

Source: Company Website and Secondary Sources © Conlumino




3. Shoprite South Africa – Key Information

3.1 Financial Performance

In FY2012, the company generated US$XX billion (ZARXX billion) in revenues, a decline of X% compared to the

previous year. During the review period, the company’s revenue increased from US$XX billion to US$XX billion,

registering a CAGR of X%.

Figure 4: Shoprite South Africa – Revenues (US$ Million), 2008–2012

Source: Conlumino © Conlumino

2008 2009 2010 2011 2012

Reven

ue (U

S$ M

illio

n)




3.2 Key Employees

Table 5: Shoprite South Africa, Key Employees

Name Job Title Board Level James Wellwood “Whitey”

Basson

CG Goosen

Source: Company website and secondary sources © Conlumino

Table 6: Shoprite South Africa, Key Employee Biographies

Employee Name Biography

Name: Dr. James Wellwood Basson

Designation:

Name: CG Goosen

Designation:





4. Competitive Environment

In the past few years, the South African economy witnessed a declining trend, impacted by a number of factors;

these include falling disposable income and a growing unemployment rate which have both affected growth in

the country. Difficult economic conditions in the country have resulted in increased competition, with retailers

offering a wider range of private labels and product discounts in an effort to boost sales.

4.1 Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa

Table 7: Main Hypermarkets, Supermarkets, and Hard-Discounters in South Africa

Store Chain Store Banners Country of Origin 2012 Store Count

First Store opened/ acquired in South

Africa Shoprite

SPAR

Pick n Pay

Woolworths Holding

Limited





4.2 About Conlumino

Conlumino Global Retail offers a comprehensive 360° view of the retail landscape. A team of analysts, with

more than 200 years of combined experience, help you identify and understand the most current retail trends.

Last year hundreds of retail businesses across the globe used our research to make critical business decisions.

4.3 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any

means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the

publisher, Conlumino.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please

note that the findings, conclusions and recommendations that Conlumino delivers will be based on information

gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a

position to guarantee. As such, Conlumino can accept no liability whatsoever for actions taken based on any

information that may subsequently prove to be incorrect.




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shoprite in south africa: local profile, 2013 · shoprite in south africa: local profile, 2013...

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