Shoprite in South Africa: Local Profile, 2013 · Shoprite in South Africa: Local Profile, 2013...
Transcript of 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
Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
©Conlumino 2013 | This product is licensed and is not to be photocopied or reproduced. 4
Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
©Conlumino 2013 | This product is licensed and is not to be photocopied or reproduced. 5
Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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)
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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)
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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:
Source: Company website and secondary sources © Conlumino
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Shoprite in South Africa: Local Profile, 2013
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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
Source: Company website and secondary sources © Conlumino
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Shoprite in South Africa: Local Profile, 2013
Published: October 2013
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
Published: October 2013
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