SWOT Analysis 2020/2021 - Corporate Retail Supplier Toolkit September 2019 - Trade Intelligence
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Corporate Retail
SWOT Analysis
2020/2021
Supplier Toolkit September 2019
CONTENTS
SWOT ANALYSIS
RESEARCH REPORT
PRODUCTION Pg 5
LEAD ANALYST
Kerry Elliot
RETAIL ANALYST
Andrea du Plessis
RESEARCH TEAM
Carey Leighton Purpose and Scope of the Report
CLIENT SERVICES Planning with Pick n Pay Stores Ltd for the short to medium term
info@tradeintelligence.co.za
This Pick n Pay Supplier Executive Report is published to equip
EDITORS FMCG supplier executives and key account managers with the
Nick Paul and Katia Benedetti business information and perspective required to build relevant,
commercially sound 2020- 2021 strategic and operational plans.
PHOTOGRAPHY CREDIT
Trade Intelligence Trade Photo The report includes trended financial key indicator performance
Library (unless otherwise stated) and store footprint developments, short to medium-term strategic
intentions and a precise
ENQUIRIES SWOT analysis, published to assist you to identify the
opportunities for your business and products.
info@tradeintelligence.co.z The intention is a report that assists you to grow and cement your
a trading partnership with Pick n Pay Stores Pty Ltd.*
+27 (0)31 303 2803
*Report contents are complied by the (Ti) Trade Intelligence analyst team. Our methodology
@TradeTatler aggregates retailer and supplier face-to-face interview, public domain data sources, retailer
presentations, in-store immersions and financial report data to provide supplier-relevant perspective
and insights. Report contents are the view of (Ti) Trade Intelligence and are not formally endorsed
tradeintelligenc by Pick n Pay Stores Pty Ltd.
e tradeintel
www.tradeintelligence.co.z
Copyright © 2019 Trade Intelligence. All rights
a
reserved. Copyright subsists in this work. No part of
this work may be reproduced in any form or by any
means unless directly quoted as source.
Any unreferenced reproduction of this work will "In tough times, success depends on having the right plan,
and delivering on that plan, whatever the circumstances.
constitute a copyright infringement and render
the doer liable under both civil and criminal law.
This result is built on a clear, long-term strategy to create a
The Boxer Executive Report is published
independently of this report. Please contact Ti
should you require access to this report.
leaner and more cost-effective business, which gives
customers exceptional value, quality, innovation and service.
We have raised our game in a difficult economy when
customers have needed us most."
Richard Brasher, Pick n Pay Stores Ltd CEO
Copyright
Copyright ©©2019
2019 Trade
Trade Trade Intelligence Executive Report | Pick n Pay SWOT Analysis| September 2019 2
Intelligence
Intelligence
PICK N PAY SWOT ANALYSIS
The following SWOT analysis focuses on retailer strengths and weaknesses and the corresponding supplier
opportunities and threats. Utilise these as a thought starter and tool to custom develop your own aligned customer
business SWOT.
RETAILER STRENGTHS RETAILER WEAKNESSES
Strategy Growth
• Remained consistent since the implementation of the • Although strategy is well articulated, execution is
turnaround strategy sometimes wanting
• Behaviour should be more strategy led than profit led, • Comparatively few supermarkets added to the Pick n
now that the business is in a more stable position Pay brand – focus has been on clothing, liquor and
Express / convenience and Boxer stores
Growth
• Price competitiveness is sometimes questionable
• A strong heritage brand
• Diversification: a multi-format, multi-channel retailer Operations
• Portfolio of tiered private label brands • Still many stores needing costly refurbishments
• Value-added services offering strengthened with the • Speed of execution slow
addition of TymeBank • On-shelf availability has improved, but remains
a challenge
Shopper Marketing
• Lack of response to regional product nuances as
• Smart Shopper platform – shopper behaviour,
a result of centralised buying
category and store-based insights
• Improved shopper segmentation
• Relevant price promotions for the cash-strapped
shopper
Sustainability
• Strong focus on waste reduction, with strong
communication around plastic reduction
• Significant community and connectivity investment
"We have made our shops brighter
and more vibrant, accelerated our
own-brand offer and taken real steps
to become a true multi-channel
retail business. We are changing the
trajectory of the Pick n Pay Group, and
will build on this momentum in 2019."
Richard Brasher, Pick n Pay Stores Ltd CEO
Value-added services offering strengthened with
the addition of TymeBank
Copyright © 2019 Trade Trade Intelligence Executive Report | Pick n Pay SWOT Analysis| September 2019 3
Intelligence
SUPPLIER OPPORTUNITIES
Growth Relationships
• Understand the role of your categories within Pick n • Expect tough buying, be equipped with well-
Pay, and be well-informed with appropriate market supported fact-based commercial arguments
and brand/SKU performance insights • Understand Pick n Pay’s strategic priorities and
• Leverage the opportunity to translate data into shopper understand the associated KPIs
behaviour, category and store-based insights
• Explore private label innovation and supply
opportunities SUPPLIER THREATS
• Connect with Pick n Pay franchise directly Growth
• Investigate sustainable products and packaging as an • Increased focus on and growth in private label –
increasing priority for Pick n Pay monitor developments across your categories
• Support the roll-out of Pick n Pay Express and Market • Range rationalisation – products will not be listed
stores (spaza shops) with more appropriate products unless there is a real shopper proposition and
and pack sizes for forecourt and Market store category rationale
convenience • Independence of franchise stores in the listing and
replenishment of products – direct relationship
Shopper Marketing
required at store level
• Targeted Smart Shopper promotions
• Targeted promotions for convenience formats Supply Chain
• Value based DC stock-holding methodology is
• Explore pallet deals to support bulk promotions in
questionable and increases risk of out of stocks on
relevant stores
high-value items
• Explore opportunities for innovation and range
• Imbalance in functional roles within category
extension within the fresh produce and adjacent
management vs space planning, limiting supplier
sections, given the prominence placed on these
engagement
sections by Pick n Pay
• Pressure on inventories through closer range
• Explore the value of in-store promotions
management
• Look for opportunities to capitalise on Pick n Pay’s
price promotions • Continued complications with centralisation
• Absence of DC controllers across all regions
Operations
• Get the basics right – ensure you understand the Operations
Pick n Pay systems, in-store space constraints, • After banning POS, Pick n Pay’s strategy is now to ‘fill
planograms etc. the playground’ and this can result in cluttered stores
• Try to get allocations for new product introductions • Potentially an expensive account to service, given
(perhaps on a sale and return basis) investment at national level and franchise level
• In corporate store ensure that promotional indicators • Pick n Pay follow Boxer’s lead with regards to own
are opened to order up for promotions in-store merchandising
• Establish ways of contributing to savings in the value
chain
• Support Pick n Pay’s goal to improve cold chain
Copyright © 2019 Trade Trade Intelligence Executive Report | Pick n Pay SWOT Analysis| September 2019 4
Intelligence
Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of
public domain data sources, face-to-face interviews, retailer presentations and financial reports, and
+27 (0) 31 303 2803
are intended to provide general information about the South African consumer goods trading
environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
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Copyright © 2019 Trade Intelligence. All rights reserved. Copyright subsists in this work. No part of this work may
be reproduced in any form or by any means unless directly quoted as source. Any unreferenced reproduction of
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