Business Research Task

BUSINESS RESEARCH TASK:
THE GENERAL RETAILOR

INDUSTRY
By Isha Kalyan
Southdowns College
Business Studies
Business Research Task: The general retailor industry
No index entries found.
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Research Question and Intention of Task

Research Question: What is the current state of the General Retailer industry in South Africa, and
how does it affect the market potential for new General Retailers?
Hypothesis: The General Retailer industry in South Africa is highly competitive, and there may be
limited room for new entrants. However, by implementing innovative marketing strategies and
adapting to changing business environments, new General Retailers can still carve out a niche and
gain market share.
The purpose of this study is to provide a detailed background of a selected General Retailer in
South Africa, analyze the business environment, and evaluate the effectiveness of its marketing
strategies. By comparing the company to the industry norm, this study aims to provide insights
into the market potential for new General Retailers in South Africa. Based on the findings, the
study will critically evaluate the statement regarding the room for new General Retailers in the
market.
Background of Woolworths
Type of Company
According to SA Shares, Woolworths shares were first listed for sale on the Johannesburg Stock
Exchange (JSE) in 1997, and the company is currently one of the top 40 JSE-listed companies, with
a market cap of around R100 billion, and has a strong Woolworths share price history.
History
In Cape Town, South Africa, the first Woolworths branch was opened to customers. Max
Sonnenberg, who founded the company, captivated the public's attention with innovative shop
policies that set Woolworths apart from its rivals. A second location followed three years later in
Durban, and two more, in Port Elizabeth and Johannesburg, opened a year later. Since then,
Woolworths has steadily increased its reputation for outstanding value, exhilarating innovation,
and superior quality.
Woolworths unveiled their shop card in 1994. In order to offer targeted financial products and
services to Woolworths clients, Woolworths Financial Services, a joint venture between
Woolworths South Africa and Barclays Bank, was established in 2000.
WHL bought a majority stake in Country Road Group in 1997, and in 2014 it acquired the
remaining shares. In order to produce and supply women's casual cotton shirts, the Country Road
brand was established in 1974. After being relaunched in 2004, the company has grown to become
a top lifestyle brand known for its fashionable, high-end housewares and accessories.
Zyda Rylands is the CEO of Woolworths South Africa since 2015.
Key Milestones
Woolworths was one of the earliest domestic retailers to provide its employees with a pension
fund, medical aid, and maternity leave benefits.
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As pioneers in technology, Woolworths signed a lease agreement with National Cash Registers
(NCR) for its first computer in the late 1960s and had already implemented a computerised
merchandising system by the early 1970s.
Woolworths made history in 1974 as the first South African retailer to introduce "sell by" dates on
food packaging.
Vision and Values

Woolworths vision is “TO BE ONE OF THE WORLD’S MOST RESPONSIBLE RETAILERS reflects our
passionate commitment to doing good business, for our customers, our people and our planet”
Their values are to be customer obsessed, responsible, inspirational, committed to quality and
collaborative.
Ethics
Woolworths is actively working to improve their programs to address the growing awareness of the
transparency of supply chains and the traceability of products. Their approach to ethical sourcing is
made of a ‘Supplier codes of conduct’, ‘Monitoring of suppliers and ethical audits’ by making sure
that suppliers and staff receive continuing training in human rights, ethics, and responsible
commodities sourcing to advance their ethical sourcing goals. As well as Supply Chain
Transparency to increase their accountability and provide visibility to all stakeholders.
Ethics and Social Committee

Woolworths Ethics and Social Committee monitors the company’s behaviour and strategy and
ensuring that the way the business is run supports the Group's intention to be a responsible
corporate citizen, the Committee's duty is to support the Board in establishing the tone for an
ethical organizational culture. The Committee also fulfills its legal obligations under the Act and
ensures that the Group has a compliance program that effectively manages compliance risk and
addresses high-risk regulatory compliance areas as well as health and safety.
Company Culture
The corporate culture of the WHL Group promotes diversity, inclusivity, personal development,
and mutual respect, and aims to provide a discrimination-free environment that fosters talent
development, innovation, creativity, and sustainable business performance. The Group is
committed to continuous learning, collaboration with stakeholders, and observing the ten
principles of the Universal Declaration of Human Rights and the International Labour Organisation.
The Group's codes of conduct, policies, and procedures reflect the human rights culture and values
that are also expected of its business partners. The recent social, race, and gender-based
inequalities brought to the fore by the Covid-19 pandemic, anti-systemic racism demonstrations,
and civil unrest in South Africa have made the Group even more determined to entrench respect
for human rights, diversity, and inclusion in its corporate culture.
Woolworths South Africa is committed to improving the quality of life for its employees,
customers, and stakeholders. The company focuses on fair wages, the inclusion of people with
disabilities, and skill development aligned with national strategies. The company's efforts are
driven by a commitment to doing the right thing rather than just following legislation.
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The Inclusive Justice Initiative at WHL promotes diversity and inclusion as important factors for
equal employment opportunities regardless of factors such as race, gender, and disability. The
Board comprises a diverse group of individuals with varied qualifications, skills, and backgrounds.
WHL has committed to achieving 50% representation for both female and black directors on the
Board by 2023. WHL's Executive Committee is also diverse. Each region is encouraged to develop
transformation strategies that are aligned with their specific context, with racial and gender
inclusivity remaining a key focus across the Group.
Sustainability Committee
The Committee's responsibility is to guarantee that the Group's sustainability strategy establishes
the Group as a responsible retailing leader in the countries where it conducts business. Moreover,
the Committee supervises the effective integration of sustainability initiatives and objectives into
the business, ensuring that the Group operates in an environmentally and socially responsible
manner, while aiming for more responsible consumption and production systems and behaviours.
Woolworths' vision to be a responsible retailer is supported by its sustainability program, the
Good Business Journey. The program focuses on eight areas including social development,
sustainable farming, and climate change. The company sets ambitious sustainability goals to
challenge themselves and inspire collaboration with stakeholders. In 2021, Woolworths launched
its new Good Business Journey strategy, Vision 2025+, to address complex sustainability
challenges and opportunities.
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Organisational Structure
Introduction
Woolworths is a major retailer in South Africa with a commitment to sustainability and responsible
retailing. As such, it is important to compare Woolworths to industry norms that will be obtained
through an industry analyses, paying special attention to the business environments and
marketing strategies that set it apart from its competitors, Pick n Pay, Spar and Checkers. By
examining these factors, we can gain a deeper understanding of Woolworths' strengths and
weaknesses, as well as identify opportunities for growth and improvement. In this comparative
study, we will analyse Woolworths' business environment, marketing strategies, and sustainability
initiatives, comparing them to their competitors in order to provide insights into how Woolworths
can continue to innovate and lead in the retail industry.
Comparative of Woolworths study to Industry norm

Business Environments
E-commerce
E-commerce, is the buying and selling of goods and services over the internet. It involves a range
of commercial transactions that are conducted online, including online shopping, online banking,
digital payments, and online auctions, among others. E-commerce has become increasingly
popular over the years, and it has transformed the way businesses operate and consumers shop.
With e-commerce, people can shop for goods and services from anywhere, at any time, using a
range of devices, such as smartphones, tablets, and computers. Most businesses have websites
and apps available online.
Since the outbreak of COVID-19, numerous businesses have experienced a surge in their online
sales, resulting in a significant increase in the use of their online applications and delivery services.
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A World Wide Worx study revealed SA’s e-commerce sales reached a tipping point in 2020,
growing by 66% from 2018.
According to Pick n Pay's 2022 report, the company has witnessed a significant surge in its online
sales during the 18-week period that ended on 3rd July 2022, as compared to the same period last
year. The report reveals that the total online sales, comprising scheduled delivery, click and
collect, and the asap! on-demand online service, grew by 97.3%. This indicates a growing trend
among shoppers who are increasingly turning to online platforms to purchase their groceries.
Spars’s Spar2U delivery service and online app that launched in 2022, increased turnover by 7.8%
and sales growth was raised by 7.4%.
According to an article by the Daily Investor, Chantal Marx, head of investment research and
content at FNB Wealth and Investments, Checkers Sixty60's expansion has resulted in a loss for
Woolworths Food, which operates in the higher-end market segment. Woolworths Food's delivery
service, Woolies Dash, lags far behind Checkers Sixty60.
Checker’s Sixty60 recorded a 150% increase in annual sales and remained the top South African
grocery app with 2.4 million downloads.
Woolworths has reported a substantial increase in the usage of its shopping app, Dash, with a user
base of 1.6 million, as more South Africans embrace the convenience of online shopping.
Furthermore, the retailer has witnessed a remarkable surge in its online sales over the past year,
with double-digit growth across all categories, amounting to 4.3% of its total monthly sales.
Woolworths Food experienced a 45% surge in online sales, attributed in part to the Woolies Dash
delivery service, with online sales accounting for 3.2% of the South African food division's sales.
In conclusion Woolworths Food, which operates in the higher-end market segment, has been
impacted by the expansion of Checkers Sixty60, resulting in a loss for Woolworths Food.
Therefore, while Woolworths is well-established in the e-commerce market in South Africa, there
may still be room for improvement. Need better conclusion
Use of Technology
The use of technology in business refers to the adoption and application of various digital tools,
systems, and processes to improve efficiency, productivity, and profitability of a business.
Technology can help businesses automate manual processes, streamline operations, improve
communication, enhance customer experience, and provide better insights for decision-making. In
today's business environment, technology has become a critical component for success, and
companies that invest in and leverage technology effectively are often more competitive and agile.
According to an interview on The Money Show done by Bruce Whitfield with Chris Shortt, Pick n
Pay Group Executive for Information and Technology, Pick n Pay have trialled the use crypto
currency as a method of payment, this has been implemented in 29 stores so far. He said, “The
process we follow is a very clear innovation path. We trial it close to home first; we then widen
that with both users and stores and then we read the data... and then decide where else we would
want to give it a go.”
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Pick n Pay, being the pioneer among major retailers in South Africa, introduced contactless
payments through 'Tap & Go' cards initially, and has now expanded their payment options by
incorporating QR payments using Masterpass into their payment devices.
On a TechCentral podcast, Duncan McLeod interviewed Shoprite Group chief of strategy and
innovation Neil Schreuder, who spoke about the piloting a concept store Checkers Rush. Checkers
Rush is a "no queues, no checkout, no waiting" concept store, it said. "Using advanced AI camera
technology to identify the products being taken off the shelves, Checkers Rush bills users’ bank
cards upon exit." Currently, it is being tested internally among employees, and if it demonstrates
success, there is a possibility of a broader rollout.
Over the past three years, Woolworths has invested more than R1 billion in enhancing its digital
capabilities in South Africa, in order to offer new and innovative experiences that cater to the
changing demands of customers, and to distinguish its services from competitors in the market.
Woolworths offers a wide range of online delivery options to cater to the needs of its customers,
including scheduled delivery for all products, on-demand delivery for fresh food, and click and
collect services available at partner stores. The company is also investing in the 'phygital' space by
leveraging existing and emerging technologies to enhance in-store shopping experiences with
online functionality. Woolworths is currently ramping up its social commerce strategy to enable
purchases through Instagram and TikTok. Last year, the retailer announced its intention to hire
over 100 specialists to develop new digital services and advance its digital strategy.
It appears that Woolworths is leading the way in integrating technology into their business,
especially through the use of social media to target a younger customer base, while Checkers and
Pick n Pay are still in the testing phase.
Green Logistics
Green logistics refers to the integration of environmentally friendly practices and technologies into
the transportation and distribution of goods. It involves reducing the carbon footprint of logistics
operations by minimizing emissions, optimizing routes and transportation modes, and reducing
waste and energy consumption. Green logistics also includes sustainable packaging and using eco-
friendly materials in logistics operations. The goal of green logistics is to achieve a more
sustainable and environmentally friendly supply chain.
“Sustainability is core to our business – it impacts everything that we do. It has been entrenched
into the culture of our organisation and is put into action through our Good Business Journey (GBJ)
programme,” says Woolworths group CEO Roy Bagattini.
Woolworths has announced that it will make sure that all of its private-label fashion and home
products are designed to be reused, repaired, repurposed, or recycled. Their goal are to achieve
NET ZERO CARBON IMPACT by 2040 and source 100% of our energy from renewable energy sources by
2030.
Woolworths was the pioneer retailer in South Africa to join the Renewable Energy Tariff
programme of Eskom, enabling the company to acquire wind power for six sites that are directly
linked to Eskom.
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In 2013, Woolworths began introducing closed-door refrigeration to both new and existing stores.
The company now utilizes lightweight, frameless acrylic doors on its store fridges which has led to
a 25% decrease in energy consumption and has improved cold-chain maintenance, leading to a
reduction in food waste and an increase in the shelf life of products.
Woolworths has collaborated with logistics partners to improve logistics operations, implementing
an initiative in the past year to reduce CO2 emissions and noise pollution from delivery vehicles.
Hybrid transport refrigeration units have been introduced on three vehicles in a proof-of-concept
stage. Based on the results of different solutions, the most effective technology will be
implemented on more vehicles. The company has also started using larger trucks that can
transport more products per trip to increase efficiency and reduce the number of trucks needed,
thereby reducing the carbon footprint associated with transportation.
Woolworths have also been changing in store lighting to LED lights, this has helped to reduce between
14 and 30% in energy demand, which leads to a reduction in electricity consumption, as well as the overall
carbon footprint.
Woolworths has taken a significant step towards sustainability by discontinuing the use of plastic
bags and adopting sustainable alternatives. In select stores, customers are encouraged to bring
their own bags or opt for reusable and eco-friendly options. Moreover, these stores feature a
designated area where shoppers can donate any extra bags, which can then be reused by
someone in need. By implementing this strategy, the company aims to reduce the production of
plastic bags while promoting the reuse of existing ones.
Checkers Sitari store running entirely on renewable energy. This is the outcome of a 635kWp
rooftop solar PV installation and an agreement with Eskom’s Renewable Energy Tariff programme.
The Sitari Village Mall, anchored by Checkers, generates 35% of its electricity from its rooftop solar
PV system and the remaining 65% is sourced from Eskom's wind plant via the RET programme.
Part of Checkers Suitability Journey is collecting cooking oil from all their stores, and recycling it
into industrial products. In 2022 the increased their installed capacity of solar PV systems by 82%
and over a 1000 of their trucks are solar powered.
Checkers employs sustainable practices in their in-store packaging by utilizing 100% responsibly
sourced paper and cardboard, offering shopping bags made from 100% recycled plastic that are
fully recyclable, and ensuring that 91% of their in-store packaging is reusable, recyclable or
compostable. Additionally, their new trolleys are made entirely from locally sourced recycled
materials.
Pick n Pay has pledged to decrease their energy intensity by 50% by 2020. Working alongside
Energy Partners and focusing on energy efficiency, they have already achieved a 37% reduction.
Moving forward, their energy goals involve increasing the amount of renewable energy they
generate and consume. To this end, Pick n Pay has installed solar panels at three stores and two
distribution centers.
For the last 25 years, Pick n Pay has been a crucial sponsor of the National Beach and River Clean-
ups. From 2020, the organization has taken part in nearly 30 beach and river clean-ups across the
provinces of Eastern Cape, KwaZulu-Natal, Western Cape, and Gauteng.
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Pick n Pay has set an ambitious goal to ensure that all of its packaging will be reusable or
recyclable by 2025. Furthermore, an average of 30% recycled content will be incorporated into all
Pick n Pay packaging. The organization is committed to sourcing 100% of the cardboard and paper
for its packaging from responsibly managed forests. Additionally, there is a target of reducing the
average packaging weight of Pick n Pay branded products by 30%. Finally, the organization aims to
increase the sales of its reusable bags by 30%.
Pick n Pay has been providing in-store recycling bins for plastic bags for several years. To further
enhance their recycling efforts, the retailer will now offer free plastic collection from online
customer homes. Plastic straws will no longer be available at checkouts and will be replaced with
paper straws that will only be provided at cold drink kiosks. Additionally, the organization will
introduce Pick n Pay-branded earbuds with paper inners instead of plastic, as a more eco-friendly
alternative to everyday disposable items made of plastic.
Woolworths seems to be the most committed to sustainability and green logistics compared to
Checkers and Pick n Pay. Checkers and Pick n Pay have also taken steps towards sustainability,
such as using solar energy, recycling cooking oil and providing recycling bins for plastic bags.
However, Woolworths appears to be more advanced in their sustainability practices and has a
more comprehensive approach towards green logistics.
Mention primary research survey, most people think of woolworths as best in sustainability
Economic Factors- Inflation
Economic factors refer to the conditions and trends that influence the performance of an economy
or business. These factors can include a wide range of economic variables such as inflation, interest
rates, employment levels, productivity, and consumer spending. They can also include external
factors such as global economic trends, trade policies, and political events.
Economic factors can have both short-term and long-term impacts on businesses. For example, a
rise in interest rates can make it more expensive for businesses to borrow money, which can lead to
a decrease in investment and economic growth. Similarly, an increase in inflation can lead to higher
prices for goods and services, reducing consumer purchasing power and demand for products.
Inflation is a general increase in the price level of goods and services in an economy over a certain
period of time. It means that the purchasing power of money decreases as prices rise. Inflation is
typically measured by calculating the percentage change in the Consumer Price Index (CPI), which
tracks the price changes of a basket of goods and services commonly purchased by households.
Inflation can have various causes, including an increase in the money supply, an increase in demand
for goods and services, or a decrease in the supply of goods and services.
In December 2022, the index indicated a substantial increase in food prices in South Africa, with
the cost of a basket of goods being 13.5% higher than the previous year. Compared to the
previous year, food inflation in February rose by 13.6%, indicating a 0.2% increase from January's
figure. Additionally, it was almost twice the country's consumer price index (CPI) headline inflation
of 7%.
According to BFAP, the reasons for the sustained high food prices in South Africa include the
weakening of the rand, ongoing and increasing load shedding, unfavourable weather patterns in
important production areas (such as South America), and geopolitical instability (such as the war in
Ukraine). The primary factor leading to these increases is the depreciation of the rand. As a result,
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prices for food and non-alcoholic beverages in South Africa rose by 14.0% year-on-year in March
2023, the largest increase since March 2009.
https://tradingeconomics.com/south-africa/food-inflation
Shoprite, despite having significant exposure to commodity lines that usually come with higher
selling price inflation, had a South African supermarket selling price inflation of 11.8% in January
2023, which is still lower than the country's food inflation of 13.8%. The group's internal selling
price inflation for the half-year grew by 9.4%, which reflects Shoprite's product mix exposure to
commodities while selling price inflation was significantly higher.
According to Daily Investor's analysis, the price of Woolworths Food increased by slightly less than
12% from January 2022 to January 2023, which is lower than the overall food inflation rate in
South Africa.
I don’t know what to conclude here
Load shedding
Load shedding is a deliberate and controlled power outage that is implemented by an electricity
supplier, such as an energy utility company, to reduce the load on the power grid and prevent a
total blackout of the system. It is typically done as a last resort when the demand for electricity
exceeds the available supply, which can lead to widespread blackouts and damage to the power
grid infrastructure. During load shedding, certain areas or regions may have their power supply cut
off for a certain period of time, usually on a rotating basis, in order to balance the demand and
supply of electricity.
According to Pick n Pay's 2022 annual report, the costs of load shedding, including the cost of
diesel generators, resulted in a significant increase in its operating costs. The company spent an
additional R346 million on diesel to run generators at stores in the first ten months of the year,
with costs currently running at approximately R60 million per month depending on the level of
load shedding experienced. Additionally, Pick n Pay is experiencing increased generator repairs
and maintenance costs and additional food waste costs.
Shoprite's expenses have risen significantly due to load shedding, with total expenses growing by
17.8%. The group's electricity and water expenses increased by 30.3%, with the company spending
R560 million on diesel for generators across its stores.
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According to Woolworths, load shedding had a significant financial impact on the company's
operating profit, resulting in costs of approximately R15 million per month or R90 million for the
reporting period.
Woolworths loss, is less than most companies, thanks to their increased use in renewable
resources.
The Level of Rivalry
The level of rivalry refers to the degree of competition that exists within an industry. It is a key
element of Porter's Six Forces framework, which is used to analyse the competitiveness of an
industry. The level of rivalry is affected by various factors such as the number of competitors, the
rate of industry growth, the level of product differentiation, the size and diversity of competitors,
and the ease of entry and exit from the industry. In general, high levels of rivalry mean that there
are many competitors in the industry, products or services are similar, and there is intense
competition to gain market share.
Loyalty programs are marketing strategies designed to encourage customers to repeatedly buy
products or services from a business. These programs reward customers for their loyalty by
offering incentives or benefits, such as discounts, free merchandise, or exclusive access to events
or services.
Loyalty programs can help to increase customer loyalty, which can be a key factor in reducing the
level of rivalry in a competitive market. In addition to increasing customer loyalty, loyalty
programs can also help to differentiate a business from its competitors. If a business is able to
offer a more attractive loyalty program than its competitors, it may be able to gain a competitive
advantage by attracting more customers.
Top 20 most used loyalty programmes in South Africa ranked by BusinessTech.
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Pick n Pay Smart Shopper 2nd, Checkers Xtra Savings is 3rd, Woolworths WRewards ranked 5th,
Spar Rewards 6th, Shoprite Xtra Savings 9th, MySchool MyVillage MyPlanet 12th.
General industry norms for loyalty programmes are the following:
 Sign-up bonuses.
 Reward points or cashback: redeemed for discounts or free products.
 Tiered membership: Loyalty programs often offer different tiers of membership Higher
tiers offer better rewards and perks.
 Personalized offers
 Exclusive discounts and
 Partner rewards
 Mobile app or online platform
Woolworths offers a free WRewards account, with daily records reviewed to upgrade customers
to a higher tier status. Members can save up to 20% on selected items, get an extra 5% off when
paying with a Woolies card, receive exclusive information about sales and special events, exclusive
vouchers throughout the year, and more. VIP members who spend more than R30,000 a year
receive additional benefits such as a welcome-to-tier voucher and a birthday voucher. The
Woolworths mobile app also displays deals for WReward members. WReward satisfies the
industry norms, however Pick n Pay Smart Shopper offers more. Pick n Pay offers a free Smart
Shopper account for customers to earn and spend points on various deals. Customers can earn
points when they use their Smart Shopper card at Pick n Pay till points and can spend these points
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on any item in-store, swap them for partner rewards, or donate them to charity. Partner rewards
include discounts on fuel, car rentals, gym memberships, and vouchers for restaurants and
entertainment. Smart Shoppers can also receive instant discounts, personalized discounts, and
join free clubs for more discounts and bonus points.
Need a sentence to flow to next paragraph
According to Google Play store under the most used retail apps in South Africa, Spar was ranked
25th most downlloaded, Woolworths 12th, Shoprite 11th and CheckersSixty60 was 5th.
It is evident that other businesses loyalty programs and mobile apps are competing with
Woolworths.
Explain graph below sentence
FY2021
https://www.supermarket.co.za/news-article.asp?ID=13583&CatTags=10-Research%20tools
When comparing Woolworths turnover to their competitors, Woolworths is severely behind. This
is due to Shoprite having a larger market share and wider target market.
The following table represents how many stores brands and employees each business has in South
Africa, with Shoprite having majority market share.
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Investment indicators – I don’t understand completely, should this info be

used? Does it contradict previous information.
Shoprite is by far the biggest retailer when looking at market capitalisation, coming in at
a total of R131.4 billion – more than double the next on the list, Woolworths.
The group also has a larger share price than the other retailers assessed. Given its
substantial size, it makes sense that the group is considered quite expensive to invest
in, with a price-to-earnings ratio of 21.41.
However, this is slightly lower than Pick n Pay, which has a ratio of 22.04. The
‘cheapest’ retailer is Spar, with a P/E of 12.02.
Retailer Market Cap Share price P/E Ratio
Shoprite R131.37 billion R222.57 21.41

Woolworths R64.66 billion R62.86 16.48
Pick n Pay R27.45 billion R55.64 22.04
Spar R26.95 billion R139.92 12.02
Massmart R13.3 billion R60.69 n/a
In late 2022, The Outlier conducted "grocery basket" research comparing the prices of specific
items across four major supermarkets in South Africa - Checkers, Pick n Pay, Woolworths and Spar.
Refilwe Moloto conducted an interviewed Alastair Otter an editor at The Outlier on the research
findings.
The grocery bag contained nine items, and Woolworths was found to be the cheapest option in-
store, at R438.91, 7% cheaper than Checkers. However, online prices for the same products at
Woolworths differed by R30 or 7% compared to in-store prices, minus delivery fees.
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https://www.citizen.co.za/business/personal-finance/grocery-basket-woolworths-cheaper-than-spar-
checkers-and-pick-n-pay-in-november/
Though Woolworths is perceived as a higher priced store, this is not necessarily true.
According to a survey done on 21st April 2023, consisting of 29 people Woolworths came first in most
preferred store to shop at.
Marketing
People and Process - Customer Service
Customer service refers to the assistance and support provided to customers before, during, and
after a purchase or transaction with a company. It includes any interactions between the company
and the customer, such as answering questions, resolving issues or complaints, providing
information about products or services, and ensuring customer satisfaction. Effective customer
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service is essential for building strong relationships with customers and promoting loyalty to the
brand.
Woolworths customer Service ratings meets the retail industry norm of having a below 2 star
rating.
However, Woolworths provides pay tills in both their food and clothing sections, providing
customers with the convenience of choosing the shortest queue regardless of the type of product
they are purchasing. Additionally, having a separate returns section helps as well. In contrast to
many other general retailers, where there are no separate lines for returns and are therefore
handled in the same ques as purchases, in one section of the store, contributing to longer lines.
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Woolworths also scored 1st in 2020 top 30 South African CX+ (Customer Experince) retail ranking. This is
better than their competitors.
Target Market
A target market refers to a specific group of consumers or organizations that a business focuses on
to sell its products or services. It is the group of people or businesses that the company wants to
attract and cater to, based on their needs, preferences, characteristics, behavior, and purchasing
power. The target market is determined based on factors such as age, gender, income, education,
lifestyle, geographic location, and psychographics. By identifying and understanding the target
market, a business can develop more effective marketing strategies, improve customer
satisfaction, and increase sales and revenue.
Woolworths is targeting customers in the upper income bracket, specifically those belonging to
the SEL 1 and 2 retail segments in South Africa. These segments were previously known as LSM 8-
10 and include consumers with mid to high-level incomes.
Pick n Pay QualiSave, which has recently been launched, is aimed at the expanding middle market
segment. On the other hand, original-branded Pick n Pay stores are now geared towards the more
affluent shopper, with a strong focus on delivering high-quality products and services to the
customer. Therefore, Pick n Pay is targeting both the middle and higher-income markets with its
different store offerings.
While Shoprite is targeting the middle-income segment.
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Since Woolworths aims to target the higher income market segment they have a smaller customer
base. Pick n Pay and Shoprite are more affordable for the middle to lower income market
segment, which has alarger customer base.
Product Quality
Product quality refers to the degree to which a product meets or exceeds the expectations of
customers. It is a measure of how well the product performs its intended functions and how it
satisfies customer needs and wants. Product quality is determined by various factors, including the
design, materials used, manufacturing processes, durability, reliability, and ease of use. High
product quality is essential for customer satisfaction and loyalty and can also help companies build
a positive brand reputation and gain a competitive advantage in the market.
According a survey performed by myself, consisting of 29 people, Woolworths is rated the highst
when it comes to product quality, with Pick n Pay, Spar and Shoprite getting average ratings of 2 to
Needs Concluding Statement
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Branding and Franchises

Branding refers to the process of creating a unique and identifiable image or name for a product,
service, or company that distinguishes it from its competitors in the minds of consumers. It
encompasses a variety of elements such as logos, slogans, packaging, advertising, and overall
design, which are used to create a specific image or identity associated with the brand. The goal of
branding is to create a strong and positive perception of the brand in the minds of the target
audience, which can help to increase brand recognition, customer loyalty, and overall sales.
The following are the different brands owned by general retail businesses.
Woolworths stretched their brand from clothes to the food industry. Spar did the same thing but
from food to medicine and construction. Pick n pay stretched their product line from food to
clothes. Shoprite went from selling food to selling home items and pet food. Having more brands
can give the business a competitive advantage and increase sales, and market share. This can be
seen for Shoprite who has th most brands and highest market stretching compared to Woolworths
who have a smaller market share and less brands. Add something else?
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Strategic plan
A strategic plan is a formal document that outlines an organization's goals, objectives, and
strategies for achieving them. It is a long-term plan that typically covers a period of three to five
years and is designed to guide the organization's decision-making and resource allocation.
Informal
An informal strategy can refer to any approach or plan of action that is not formally documented
or communicated. It is a less structured and more flexible way of doing things, often relying on
personal relationships, informal networks, and tacit knowledge. In some cases, an informal
strategy may emerge spontaneously as a response to changing circumstances, rather than being a
deliberate or planned course of action. While an informal strategy may have some advantages,
such as being adaptable and responsive to changing situations, it can also be risky as it may lack
consistency and may not be communicated effectively to all stakeholders.
Informal strategies, cant think of any
Formal
Formal strategic plans are comprehensive documents that outline an organization's long-term
goals and objectives, and the strategies and actions that will be taken to achieve them. These
plans typically cover a period of three to five years and are developed by top-level management,
often with the input of other stakeholders such as employees, customers, and investors.
Based on this analysis, the strategic plan will identify specific goals and objectives for the
organization, along with the strategies and tactics that will be used to achieve them. These may
include actions such as entering new markets, developing new products, expanding existing
operations, or restructuring the organization.
Formal strategic plans are typically communicated to all levels of the organization, and are used to
guide decision-making and resource allocation. They are also often reviewed and updated on a
regular basis to ensure that they remain relevant and effective in a rapidly changing business
environment.
Checkers is clear competition foe Woolworths when it comes to the best delivery service,
Woolworths should focus on widening the areas in which they offer delivery to most Woolworths
stores.
To handle inflation Woolworths should find alternative methods of production and cheaper
suppliers, but still maintain their good quality products.
Woolworth should continue to move towards using 100% renewable resources as this will also
help to save costs from using generators, and the business will longer be greatly impacted by load
shedding.
To fight their competitors Woolworths should focus on improving their loyalty program.
Woolworths should focus on increasing their market share and target market by providing for a
lower LSM to increase their customer base, they can do this by creating their own more affordable
brands. They can also retain more customers by improving on their customer service, by adding
more training programmes and continues monitoring of staff.
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Conclusion
Yes, there is always room in the market for new general retailers in South Africa. The South African
retail market is diverse and dynamic, with a range of established and emerging players. While
there may be competition from existing retailers, new entrants can differentiate themselves by
offering unique products, services, or experiences, or by targeting specific customer segments that
are underserved or overlooked by existing retailers. Additionally, technological advances and
changes in consumer behavior provide opportunities for innovation and disruption in the retail
industry. However, entering the retail market requires significant investment and strategic
planning to establish a competitive position and gain market share. However, entering the retail
market requires significant investment, especially due to load shedding, new businesses need to
invest a lot of money into alternative energy resources, which can e very costly. General retailers
that cater for the middle to higher income market segments are very competitive, therefore it is
possible for a new business to enter that market. Need something better for this paragraph
Include our primary research and BusinessTech article info to better this paragraph
Methodology
1. Researching multiple companies to see which one I can find the most information on, and
choosing that one.
2. Do research about the company background and history
3. Make and send a survey form to collect necessary data to family and friends
4. Complete the Comparative study, by doing research on industry norms in the business
environment and Marketing categories of 3 other companies in the same industry and
comparing them to my chosen company. I used the data collected in point 3 and the
information found in this point to complete this part of the task.
5. Determine if a new business can enter the market
6. Write the conclusion
7. Do the self-reflection
8. Add additional information or changes that may be necessary (Adding more data statics
and references)
9. Complete a plagiarism check
Self Reflection
Completing this assignment on the general retail market in South Africa has opened my
eyes to a number of things that I had not realized before. Firstly, I had no idea how highly
competitive this industry is and how challenging it can be for businesses to remain
successful in such a fiercely contested market. Through my research, I learned that the
retail landscape in South Africa is constantly evolving, with companies needing to adapt
quickly to changes in consumer behavior and technological advancements in order to stay
ahead.
Another thing that I realized is how technology is being used by different businesses in the
general retail market to gain a competitive edge. Before starting this assignment, I was
unaware of the various ways in which technology is being used to improve the customer
21 | P a g e
experience, such as through the use of e-commerce platforms, mobile apps, and other
digital marketing channels. I was impressed by how many companies are leveraging
technology to better serve their customers and create a more convenient and efficient
shopping experience.
Finally, I was heartened to see how many businesses are becoming more sustainable and
environmentally friendly in their operations. Through my research, I learned that many
companies in the retail industry are taking steps to reduce waste, lower their carbon
footprint, and promote ethical and sustainable business practices. It was encouraging to
see how these efforts are not only benefiting the environment, but also helping companies
to build stronger relationships with their customers who are increasingly conscious of
these issues.
Overall, completing this assignment has been an eye-opening experience that has given
me a deeper appreciation for the challenges and opportunities facing businesses in the
general retail market in South Africa. I believe that the knowledge and insights I have
gained from this assignment will be invaluable to me as I continue my studies and pursue a
career in this field.
Reference List
SA Shares
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1. https://www.woolworthsholdings.co.za/overview/our-purpose-vision-and-values/
2. https://sashares.co.za/woolworths-shares/#gs.um6dle
Woolworths Holding Limited
1. https://www.woolworthsholdings.co.za/ethical/#:~:text=RELATED%20VISION%202025%2B
%20GOALS,from%20traceable%20sources%20by%202025 .
2. https://www.woolworthsholdings.co.za/wp-content/uploads/2021/09/
Social_and_Ethics_Committee_Report_2021.pdf
PayScale
1. https://www.payscale.com/research/ZA/Employer=Pick_%27n_Pay/Hourly_Rate
2. https://www.payscale.com/research/ZA/Employer=Checkers/Hourly_Rate
3. https://www.payscale.com/research/ZA/Employer=SPAR_Distribution_Centre/Hourly_Rate
Pick n Pay
1. Duncan McLeod. (2022). Pick n Pay reports doubling of online sales. Available from:
https://techcentral.co.za/pick-n-pay-reports-doubling-of-online-sales/213582/. [Accessed:
14/4/2023].
2. 3SMedia. (2021). Pick n Pay keeps recycling at top of sustainability agenda. Available from:
https://infrastructurenews.co.za/2021/09/17/pick-n-pay-keeps-recycling-at-top-of-sustainability-
agenda/. [Accessed: 19/4/2023].
3. Daily Investor. (2023). Pick n Pay and Shoprite spend R1 million to R3 million per day on diesel.
Available from: https://mybroadband.co.za/news/energy/479929-pick-n-pay-and-shoprite-spend-
r1-million-to-r3-million-per-day-on-diesel.html#:~:text=Pick%20n%20Pay%20said%20in,without
%20interruptions%20during%20load%2Dshedding.. [Accessed: 19/4/2023].
4. https://www.picknpayinvestor.co.za/store-footprint-format.php
Pick n Pay integrated report
5. https://www.picknpayinvestor.co.za/downloads/annual-report/2022/picknpay-iar-2022-
interactive-spreads.pdf
Pick n Pay sustainability report
6. https://www.picknpayinvestor.co.za/downloads/doing-good/sustainable-living-report/2021/
sustainable-living-report-2021.pdf
Spar
1. Dieketseng Maleke. (2023). Spar ups its online offerings as it ramps up growth in sales. Available
from: https://www.iol.co.za/business-report/companies/spar-ups-its-online-offering-as-it-ramps-
up-growth-in-sales-d83a831a-2cd6-4623-825b-d6bfed1c919d. [Accessed: 18/4/2023].
Woolworths
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1. Sibahle Malinga. (2022). Woolies sees double-digit e-commerce growth. Available from:
https://www.itweb.co.za/content/Gb3BwMWaNNQv2k6V. [Accessed: 18/4/2023].
2. Penelope Mashego. (2022). Woolworths sales growth wilts as more people eat out, while David
Jones remains a drag. Available from: https://www.news24.com/fin24/companies/woolworths-
sales-growth-wilts-as-more-people-eat-out-while-david-jones-remains-a-drag-20220726.
[Accessed: 18/4/2023].
3. Staff Writer. (2021). Woolworths reveals minimum salary data. Available from:
https://businesstech.co.za/news/business/525492/woolworths-reveals-minimum-salary-data/.
[Accessed: 18/4/2023].
4. Moyo A. (2021). Woolworths to go all in on renewables by 2030. Available from:
https://www.itweb.co.za/content/O2rQGMAnKdeqd1ea. [Accessed: 19/4/2023].
5. Staff Writer. (2023). Load shedding hits Woolworths for R90 million. Available from:
https://businesstech.co.za/news/business/669201/load-shedding-hits-woolworths-for-r90-million-
but-profits-soar/. [Accessed: 19/4/2023].
6. Daily Investor. (2023). How much Woolworths Food prices increased between 2022 and 2023.
Available from: https://mybroadband.co.za/news/trending/476431-how-much-woolworths-food-
prices-increased-between-2022-and-2023.html#:~:text=An%20analysis%20by%20Daily
%20Investor,categories%20over%20the%20last%20year.. [Accessed: 19/4/2023].
7. https://www.woolworthsholdings.co.za/overview/our-history/#:~:text=The%20first
%20Woolworths%20store%20opened,Woolworths%20apart%20from%20its%20competitors
8. https://www.woolworths.co.za/corporate/cmp204261
9. https://slideplayer.com/slide/17935811/
Checkers
1. Daily Investor. (2023). Checkers Sixty60 crushing Woolworths Food. Available from:
https://dailyinvestor.com/retail/7690/checkers-sixty60-crushing-woolworths-food/. [Accessed:
18/4/2023].
2. N Hako. (2022). Checkers Sitari the first SA supermarket to run entirely on renewable energy.
Available from: https://www.esi-africa.com/industry-sectors/energy-efficiency/checkers-sitari-the-
first-sa-supermarket-to-run-entirely-on-renewable-energy/#:~:text=The%20Sitari%20Village
%20Mall%2C%20with,plant%20via%20the%20RET%20programme.. [Accessed: 19/4/2023].
3. https://www.checkers.co.za/our-sustainability-journey
4. L Fraser. (2023). South Africa’s biggest retailer is spending over R3 million a day to beat load
shedding. Available from: https://businesstech.co.za/news/business/670803/south-africas-biggest-
retailer-is-spending-over-r3-million-a-day-to-beat-load-shedding/#:~:text=Shoprite's%20increase
%20in%20revenue%20comes,stores%20due%20to%20load%20shedding.. [Accessed: 19/4/2023].
General
1. (2023). South African food inflation still running high in February. Available from:
https://www.engineeringnews.co.za/article/south-african-food-inflation-still-running-high-in-
february-2023-03-28/rep_id:4136. [Accessed: 19/4/2023].
2. Staff writer. (2023). Why food prices are so high in South Africa right now. Available from:
https://businesstech.co.za/news/lifestyle/670651/why-food-prices-are-so-high-in-south-africa-
right-now/#:~:text=The%20BFAP%20identified%20the%20following,areas%20(e.g.%20South
%20America)%3B. [Accessed: 19/4/2023].
3. Staff Writer. (2023). Shopper rewards compared – Spar vs Woolworths vs Pick n Pay vs Checkers.
Available from: https://businesstech.co.za/news/lifestyle/673091/shopper-rewards-compared-
spar-vs-woolworths-vs-pick-n-pay-vs-checkers/. [Accessed: 19/4/2023].
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4. https://www.lrs.org.za/wp-content/uploads/2021/11/Retail-Sector-Report-2021.pdf
5. https://www.mobileaction.co/top-apps/shopping-18/android/za
6. Staff Writer . (2022). Battle of the retail giants: Woolworths vs Shoprite vs Pick n Pay vs Spar vs
Massmart. Available from: https://www.supermarket.co.za/news-article.asp?
ID=13583&CatTags=10-Research%20tools. [Accessed: 24/4/2023].
Radio Interview
1. Shortt, C. (2022). Interviewed by Bruce Whitfield. The Money Show. Cape Talk 567AM. 1

November. Available at: https://www.capetalk.co.za/articles/458568/keen-to-pay-for-your-
groceries-with-crypto-pick-n-pay-is-leading-the-way#:~:text=%2D%20Pick%20n%20Pay
%20has%20completed,financial%20inclusion%20in%20South%20Africa.%22 (Accessed:
18 April 2023).
2. Otter A. (2022). Interviewed by Refilwe Moloto. Breakfast with Refilwe Moloto. Available at:
https://www.capetalk.co.za/articles/452470/who-s-cheapest-checkers-pick-n-pay-woolworths-or-
spar-the-results-are-in (Accessed: 20 April 2023)
Podcast
McLeod, D. (2021) Checkers Rush concept store: The inside story. [TechCentral]. 18 August 2021.
Available at: https://techcentral.co.za/checkers-rush-cashierless-concept-store-the-inside-story/
170922/ (Accessed 18 April 2023).
Hello Peter Reviews
1. https://www.hellopeter.com/woolworths
2. https://www.hellopeter.com/pick-n-pay
3. https://www.hellopeter.com/checkers-checkers-hypers
Plagiarism Statement
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BUSINESS RESEARCH TASK:

THE GENERAL RETAILOR

No index entries found.

Research Question and Intention of Task

Vision and Values

Ethics and Social Committee

Comparative of Woolworths study to Industry norm

Investment indicators – I don’t understand completely, should this info be

Retailer Market Cap Share price P/E Ratio

Shoprite R131.37 billion R222.57 21.41

Needs Concluding Statement

Branding and Franchises

Woolworths Holding Limited

Pick n Pay integrated report

Pick n Pay sustainability report

1. Shortt, C. (2022). Interviewed by Bruce Whitfield. The Money Show. Cape Talk 567AM. 1

Hello Peter Reviews

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