Makro SWOT 2019/2020 Supplier Toolkit May 2019 - Trade Intelligence
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Corporate Retail
Makro SWOT
2019/2020
Supplier Toolkit May 2019
CONTENTS
MAKRO SWOT ANALYSIS
RESEARCH REPORT
PRODUCTION Pg 3
LEAD ANALYST
Maryla Masojada
RETAIL ANALYST
Kerry Elliot "Makro saves customers time and money
RESEARCH TEAM so they can fulfil their aspirations of living
Kate Shirley and Carey Leighton
better lives and running better businesses."
CLIENT SERVICES
info@tradeintelligence.co.za Massmart
EDITORS "Through our widely-recognised,
Nick Paul and Katia Benedetti
differentiated retail and wholesale
PHOTOGRAPHY CREDIT
Trade Intelligence Trade Photo formats, we have leading shares in the
Library (unless otherwise stated) General Merchandise, Liquor, Home
Improvement and Wholesale Food markets.
ENQUIRIES
Our key foundations of high volume, low
info@tradeintelligence.co.za
+27 (0)31 303 2803 cost and operational excellence enable our
@TradeTatler
price leadership."
tradeintelligenc Guy Hayward, Massmart Group CEO
e tradeintel
www.tradeintelligence.co.za
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 this work will
constitute a copyright infringement and render
the doer liable under both civil and criminal law.
Copyright © 2019 Trade Intelligence Trade Intelligence | Makro Strategic Focus Areas and SWOT | May 2019 2
MAKRO 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
Growth Profit
• ‘Club’ warehouse format • Poor profit performance in 2018 due to stock
adjustments in Massfresh
• Real underlying volume growth
• Growth in online • Low front-end margin on more-for-less promos
• Value / everything-under-one-roof positioning • Lack of clearly communicated supplier
alignment opportunities
• Strengthening omnichannel offering
• Attracts consumer and trader segments – the • Supplier perception of joint business planning
original hybrid process
• Food and fresh offering increasing customer visits
and basket size
• Strong brand awareness and trust in M private
brand and access to Group private labels
• Massmart Supplier Development Programme (SDP)
Profitability
• The largest contributor to Massmart profit
• Well controlled expense management in Makro
• Well-balanced range of essential and non-
essential categories. Good margin mix and
profitability
• Liquor business profitable – a strong footfall driver
Operations
• Environmentally responsible new stores
• Massmart Logistics and intra-group synergies
starting to enhance profitability
• Dedicated fresh supply in the form of Fruitspot
• Dedicated online delivery mechanism
through Wumdrop
Shopper Marketing
• Good targeted marketing
• Clear, distinctive retail branding and navigation
carried through stores
• Effectiveness of multi-buy and R100 deals
promotions
• Customer relationship officers in place for
commercial customers Fresh is part of vertical integration for
• Trader credit improved margin
• Effective promotion measurement and evaluation
Copyright © 2019 Trade Intelligence Trade Intelligence | Makro Strategic Focus Areas and SWOT | May 2019 3
06 | MAKRO STRATEGIC FOCUS AREAS AND SWOT 2019/2020
SUPPLIER OPPORTUNITIES
Growth Relationship
• Understand the distinct shopper profiles, and • Ensure you have a clear understanding of Makro
variance by store KPIs and take the steps to align your customer
plan, measurement and reporting
• Suppliers in food, liquor, fresh, butchery can
engage to refine / increase listings and total • Prepare for cross-functional and Group
offering engagement on KPIs across supply chain,
marketing, finance, IT, sustainability etc.
• Drive online sales / advertising via makro.co.za
• Investigate listing opportunities created through Sustainability
Makro Marketplace • Understand Makro sustainability KPIs and
identify opportunities to align your supply chain /
• Collaborate with / motivate Makro telesales
shopper marketing / CSI strategy
• Ensure you understand the regional impact on sales
– some food items are highly regional
Operations
SUPPLIER THREATS
• Supply chain and inventory optimisation – ensure
your contact strategy is cross-functional so that the Growth
supply chain experts can talk to each other
• Potential disillusionment on collaborative
• Explore shelf-ready packaging for efforts
streamlined merchandising
• Deranging, as Makro constantly streamlines
Shopper Marketing Operations
• Identify a common category growth objective and
• Service level expectations
deliver an innovative, Makro brand aligned,
shopper marketing solution
•Private
GrowthLabel
in Walmart labels and M brand vs
• Work with Makro to leverage data obtained national brands
through the Makro card
• Understand and optimise targeted marketing
promotions across more granular shopper
segments
• Engage with banner groups
• Measure the effectiveness of your promotional spend
• Investigate sampling opportunities with
customers waiting to collect wholesale orders
• Participate in multi-buys or bulk packs to drive
pantry- fill shopping
Copyright © 2019 Trade Intelligence Trade Intelligence | Makro Strategic Focus Areas and SWOT | May 2019 4Disclaimer
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 are intended to provide general information about the South
African consumer goods trading environment and selected retailers, and are not intended
+27 (0) 31 303 2803 as an exhaustive treatment of such subjects.
info@tradeintelligence.co.za Whilst every effort has been made to ensure that the information published in this work
www.tradeintelligence.co.za is accurate, your use of these and the information contained herein is at your own risk.
The information is not intended to be relied upon as the sole basis for any decision
which may affect you or your business, and TI makes no express or implied
representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages
or any other damages whatsoever, whether in an action of contract, statute, tort (including,
without limitation, negligence), or otherwise, relating to the use of these materials and the
information contained herein.
TI expressly disclaims all implied warranties, including, without limitation,
warranties of merchantability, title, fitness for a particular purpose, non-
infringement, compatibility, security, and accuracy.
* TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence
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 this work will constitute a copyright infringement and render the doer
liable under both civil and criminal law.You can also read
