BACKGROUND ON SHOPRITE
The Shoprite Group, found at www.shoprite.co.za, is a prominent food retailer in South Africa. With various brand holdings, it strives to cater to the country’s food retail market. Notably, it has achieved remarkable success by expanding its business model to other African countries, a feat unique to South African retail companies. Their ability to adapt their business model to suit the African context has been key to this success.
In 1979, The Shoprite Group of Companies was established through the purchase of 8 supermarkets for R1m. Additionally, they acquired 6 food stores from Ackermans and 27 stores from Grand Bazaars. An acquisition of 169 Checkers stores took place and Sentra, a central buying organization for 550 owner-manager supermarket members, was also acquired. The first Shoprite store commenced trading in Zambia.
YOUR TASK FOR DEBATE AND DISCUSSION
The retail industry in South Africa is heavily influenced by brand strength and consumer trust. Six years ago, Shoprite made the decision to separate the Checkers brand from Shoprite and position it as a competitor to Pick ‘n Pay and Woolworths in the higher-end market. Do you think Shoprite has implemented the most effective positioning strategy for Checkers and that it benefits their customers?
Do you believe Checkers has adequately distinguished itself as a distinct brand from Shoprite? Is Checkers effectively competing against Pick ‘n Pay and Woolworths? What suggestions can you offer to enhance Checkers’ current success? Some points to consider (this is not an exhaustive list): How do you perceive Shoprite’s overall strategy and do you believe they are achieving success with Checkers? Justify your response.
What is the Checkers business model and how does it differ from the Shoprite business model? A brand represents the essence of a company. Do you believe Checkers and Shoprite are sufficiently preparing their employees to embody the essence of their respective brands? Justify your viewpoint and suggest any changes, enhancements, reductions, initiations, or terminations that you believe should be made. What is the reason behind Shoprite’s success in expanding their business model throughout Africa while other retail groups encounter difficulties?
ASSIGNMENT
The assignment requires a 10-page paper on advising prospective investors about investing in Shoprite, taking into consideration their strategy with Checkers and expansion into Africa. The paper needs to convince the investors group of the feasibility of the recommendations. The deadline for submission is Monday, July 14, 2009, two weeks after the International Week. Papers should be submitted in Word format via the digital drop box in eleUM. The papers will be graded by Johan Burger and Sonja Zaar and count for 50% of the final grade for the week. Preparatory work for the paper can be done before the International Week, while the finalization and fine-tuning can be completed during and after the International Week.
