SHOPRITE: People Power Gives Shoprite Strength In Adversity

Around the world, uncertainty and constantly changing messages have brought enormous pressure and demand to food retailers and supermarkets. The days leading up to South Africa’s countrywide lockdown last year saw retailers record massively increased volumes of shoppers stocking up on essentials, while retail-related conversation on social media platforms spiked as lockdown loomed.  

As everything shut down around them, supermarkets were among a small group of retailers required to ramp up operations to keep customers nourished and healthy in their time of greatest need. Dealing in products and services ranging from basic to upper end food and furniture, to pharmaceuticals and financial services, Shoprite is the largest fast-moving consumer goods retail operation in Africa, all-encompassing shopping experience catering to customers’ needs. 

LEADING THE FIGHTBACK 

As the coronavirus spread through South Africa, the Shoprite Group quickly put together a comprehensive action plan forming the core of its response. It was informed by the critical plans and safety measures put forth by both government and international health authorities, while simultaneously protecting its employees, customers and communities.   

“Although it was an incredibly trying year for all of South Africa, the Group worked hard to minimise the impact of Covid-19 and to continue innovating at pace,” the company states. “The group proudly retained all of its employees’ jobs and fed millions of hungry people.” The launch of virtual vouchers came just two weeks after lockdown’s announcement, enabling tens of thousands of South Africans to reach out and help fellow citizens with economic struggles. 

The group later teamed up with Mr D to deliver medicine to its MediRite pharmacy customers. “Getting medicine to those customers who are unable to leave their homes is one of many solutions we continue to roll out,” declared deputy CEO, Joseph Bronn. “We continue to work day and night to keep our shelves stocked and our customers and staff safe.” 

Shoprite’s employees’ invaluable role in these critical efforts has been recognised by the group at every turn. Most recently, as the third wave of Covid-19 ravaged, the group called on government to allow its employees, serving over 25 million people a month, to receive vaccinations urgently. Prioritising its frontline workers, Shoprite offered to source and administer the doses at its own cost, through its significant logistics and pharmaceutical infrastructure.  

“Our frontline workers, including cashiers, merchandisers and line management retail workers, have been at work every day since the onset of the pandemic, working tirelessly to ensure we provide food, essential groceries and medicine to the nation,” announced CEO Pieter Engelbrecht.  

“We strongly believe that they should be prioritised and we are ready to roll out vaccinations on behalf of government to our employees who continue to go the extra mile in challenging conditions to keep serving customers. We are prepared to play a role and foot the bill, and we can ensure it will happen rapidly.” 

The Group has also thanked its employees for pushing through the latest set of trying conditions, working around the clock to re-stock and rebuild affected stores in KZN and Gauteng where unrest has erupted. “While we have been affected by the violence, looting and vandalism,” the group said, “we are doing everything in our power to restock shelves as quickly as possible.” 

SHOPRITE OLD AND NEW  

“Our focus on cost-effective operational performance has paved the way for us to continue expanding,” Shoprite delineates, while June saw the opening of Shoprite’s 40th supermarket in Zambia, at Ndola’s Jacaranda Mall. More than 25 years since it first brought Zambia the pinnacle in shopping Shoprite now occupies 112,000 m² of trading space, employing almost 10,000 people.  

“The opening of our 40th Shoprite supermarket in Zambia is a very special occasion,” stated Charles Bota, General Manager of Shoprite Zambia. “Over the last 25 years, we’ve worked hard to bring the people of Zambia competitive prices and the freshest produce in the most convenient locations.”  

More than half of Shoprite Zambia’s employees are women, while 80% of jobs are occupied by those aged 25 to 35 years. Shoprite Group has spent more than R700 million in the past five years to enhance the career options of South Africa’s unskilled and unemployed youth, training 24,308 people in its own Retail Readiness Programme and providing 5765 young people with access to the Youth Employment Service (YES) programme.  

“All of these initiatives are aimed at training and upskilling people not previously employed by Shoprite and are focused on helping unemployed youth gain the skills they need to secure jobs in the retail industry,” the company outlined.  

“Upon successful completion of the programmes, learners are offered the opportunity to join the Shoprite group.” Current absorption rates are 53% and 32% from the Retail Readiness Programme and YES programmes respectively, as the nation’s youth seizes the chance to jump aboard the recently-crowned 2021 retail Employer of Choice at the South African Graduate Employers Association (SAGEA) Employer Awards. 

TOP OF THE PILE 

Two astute senior appointments have seen experienced accounting professionals and board members Nonkululeko Gobodo and Linda de Beer join the Shoprite board as independent non-executive directors.  

De Beer is a chartered accountant with extensive experience as an independent non-executive director, on the boards of Aspen, Momentum Metropolitan Holdings and Tongaat Hulett.  

“Well-governed companies are the success stories that give confidence in our country and its markets, which is very important for foreign investment,” she remarked. “They form the backbone of value creation for everybody including shareholders, employees, suppliers, customers and the community at large.”  

Gobodo, meanwhile, is a chartered accountant and pioneer in her field whose firm grew to become SizweNtsalubaGobodo (SNG), the largest black accounting firm in South Africa and fifth-largest overall. “This is a great opportunity for me to work with a group that has been going through major innovations in the last few years,” she commented, “committed to its purpose of feeding the nations of Africa and catering for all people, including poorer communities.” 

It is exactly this constant innovation, which recently has taken the shape of the Shoprite Xtra Savings rewards programme and the new Money Market Account, that has allowed Shoprite to retain its position as South Africa’s low-price champion. The latest Sunday Times Top Brands survey has made this official, as Shoprite scooped the highest accolade to be voted Best Convenience and Grocery Store of the Decade.  

“This acknowledgement is testament to us continually striving to better serve our customers and staying true to our dedication to bring them lower prices they can trust, always,” concluded Willie Peters, General Manager Marketing.  

“It is wonderful recognition during what has been a particularly challenging year, and reflects the incredible work of our entire team to ensure we keep our customers happy.”