CONCORD RETAIL SOLUTIONS: Concord Embraces Complete Retail Solutions

In May 2019, Concord Refrigeration (a division of Southey Holdings) was busy working with some of the country’s leading retailers, providing refrigerated display cabinets as well as heated display cabinets.

After the pandemic, rioting, and further economic turmoil, Concord continues to grow and thrive in tough conditions as retail clients expand further, reaching every corner of South Africa.

Rebranded, now known as Concord Retail Solutions, this experienced player is servicing its market with a wider portfolio than ever before, while searching for new opportunities.

In September, a new Checkers Hyper supermarket was opened in Brookside, Pietermaritzburg, KZN. 12 months earlier, the site sat as a pile of ash, torched during civil unrest. Concord Retail Solutions provided fridges, freezers, energy efficiency products, and a host of associated solutions, helping to bring the store back to life in what Sales & Marketing Executive Scott Messenger sees as a major triumph for both organisations.

“Checkers Hyper Brookside was iconic for us,” he says. “The store was burnt to the ground while everyone witnessed it live on TV and it became one of the iconic memories of the KZN riots. The store reopened recently and it was an emotional day. I was there with several of our team and many from Checkers themselves, it was beautiful day. The store itself is absolutely fantastic and I will go as far to say that is one of the most beautiful supermarkets I have ever stepped inside.”

The store is described as world-class by the Shoprite Group, promising a superior shopping destination, and creating new jobs in the rejuvenation process.

RETAIL SOLUTIONS

Concord Retail Solutions is now more than a refrigerated display cabinet manufacturer. The new brand brings with it the all-encompassing nature of this growing business, signalling to the retail industry that Concord is a problem-solving partner who focuses on service excellence.

“We are a supermarket and retail supplier of equipment,” confirms Messenger, explaining that Concord has no intention of taking business from refrigeration partners in the industry.

“Some of our competitors take a strategy of being a one-stop-shop, manufacturing the fridges as well as the refrigeration plant that sits on the outside of the supermarket, while also installing.  We find that this alienates a big and important part of the industry who are reliant on installing and procuring refrigeration equipment for supermarkets and other end users.”

The new name also allows the company to deepen its involvement. Adding cold rooms to its portfolio, as well shelving and shopping trolleys, and a new energy efficient imported freezer range which has been warmly welcomed by the market.

“We are now specialising in Retail Cold Rooms, which are essentially cold storage in the receiving areas for supermarkets as well larger display “boxes” for cooldrinks and also butcheries. Our contract partners will install all of the refrigeration equipment to cool our Cold Rooms.

“We are selling fridges, freezers, cold rooms, and we are exploring further exciting add-ons like shelving and shopping trolleys. Shopping trolleys are often stolen in South Africa and it is a big business,” Messenger explains. “The same companies that buy fridges and freezers from us also order shelving and trolleys from various manufacturers.  We are in discussions with a supplier of incredibly high-quality add-ons that could be fantastic complimentary products to Concord Retail Solutions.”

Energy efficiency is also a vital offering from Concord which installs traditionally power-hungry equipment. New technology is allowing the company to offer is clients reductions as they invest for the long-term.

“We are trying to offer as much energy efficiency as possible and not just in terms of gases. We are trying to convince retailers to install energy efficient fans – which will provide them with a cost saving – as well as LED lighting. We also import probably one of the world’s most energy efficient glass top sliding freezers from Portugal. These are incredibly efficient and will take the place of the open top freezers, holding temperature for longer.  We often face loadshedding and these freezers help the retailers tremendously as they keep products frozen for longer. Load shedding can often still last for more than two hours and this provides real assistance to the retailer,” details Messenger.

GREENER THAN EVER

In 2019, a new manufacturing system was installed at Concord’s Durban site. The goal for this upgrade was to ensure the use of green manufacturing inputs and environmentally friendly products going into retail sites. Removing freon from the process was the first big step.

“It’s a new foaming line where the tubs are filled,” explains Messenger. “It’s an amazing mezzanine structure with new foaming machines. It went in mid-2019 and it is a lot greener. We were given funding by the International Monetary Fund (IMF) to get this off the ground. They helped with the purchase because of the nature of the polyurethane equipment versus what was there previously. We were grateful for that, and every tub we make is much more environmentally friendly.”

He highlights the importance of embracing a global shift towards CO₂ as a dominant refrigerant gas, saying that CO₂ is a cheap refrigerant which is widely available and easy obtain.

“CO₂ is also a completely green refrigerant that has zero ozone depleting potential and a global warming potential of one. The effects on the environment with CO₂ are significant compared to traditional gases.

“It is a balancing act, but it is starting to become more important for people to do what is right for the environment as far as possible. From a refrigerant gas point of view, there is a huge drive worldwide to go away from old gases and move towards CO₂. South Africa is pushing hard in this space and many retailers are pushing for this. Many of our customers are now looking for CO₂ installations, despite the cost. The challenge is that there is not a high level of technical expertise in South Africa just yet. Some retailers are reluctant to do it and prefer to wait until others have taken the first steps and then follow when the industry expertise is in place.”

OPPORTUNITY ABOUND

As competition in the retail space in South Africa continues unabated, Messenger is confident about the company’s future pipeline, describing the nature of store development as “crazy”. With each new store comes opportunity, and the brands continue to push.

Checkers Foods is set to boom, QualiSave from Pick n Pay is exciting, and more companies are looking at how they can increase their footprints.

“Checkers Foods is a higher spec and everything to do with the store is aimed at the higher end of the market. Woolworths leads the way in SA in terms of quality perception and store design traditionally, but Checkers is now getting the competition worried with their new concept. The first Checkers Foods was opened in Franschhoek and the second in Ballito, and we fitted out that store. There are plans for more before the end of the year,” says Messenger.

Smaller format, with customer needs at front of mind, these stores present major opportunities for Concord Retail Solutions as fast, fresh food offerings are prioritised.

“The store development market in South Africa is extremely strong. Shoprite Checkers is one of the main drivers, and Pick n Pay are also upgrading a lot of their stores and opening new stores. Pick n Pay has recently launched their QualiSave brand, and the competition between the big businesses is fierce. The rural areas is where the significant growth is coming from as they all compete for coverage.”

Able to service all of southern Africa from its home north of Durban, Concord’s expansion of the team has been required to satisfy a booming market.

“We more than doubled our sales team over last 12 months. Our finance department has also grown. Our factory has been working strongly, and from a sales point of view our growth is tremendously exciting,” smiles Messenger, adding that the company is always looking at opportunities across the borders to grow on the continent.

“We have identified people and agents who can help drive growth for us in Africa and this is something we feel all our competitors are looking into. Africa can be tough but there remains so much opportunity there to tap into.”

Designed and manufactured to international standards, greener than ever, quality focussed, proudly South African, and always innovating, Concord Retail Solutions continues to support clients, as it has for more than 50 years, with the very best product and service available.

The company’s mantra – where superior robust design meets service excellence – is a true reflection of an organisation that is ambitious to be better and be more. “We are delighted with how things are going and excited about our future,” concludes Messenger.