Pick n Pay – a scale business

R63bn turnover

7 countries

>1000 stores50% Franchised

~100 000 employees

Estimated to have about 28.5% market share of the top 4 players in South Africa

1FY14 results

“Make the customer Queen and she will make you King”

Core Philosophy 4 legs of a table

Our plan

3

Be ethical

Obey laws and regulations

Be profitable

Contribute resourcestowards communitydevelopment & welfare

Obligation to do what is right, just and fair and to

avoid harm

Law is society’scodification of right

and wrong.

The foundation uponwhich all others rest Economic Responsibilities

Legal Responsibilities

Ethical Responsibilities

PhilanthropicResponsibilities

Adapted from: Carroll, 1991

Be a Good Corporate citizen

ENTERPRISE DEVELOPMENT PROCESS

Small Business Incubator

To facilitate SMMEs’ and EMEs’ intro to retail through mentorship, guidance and support using the PnP structure

• 3 Tiers of support•BABY < R5m•TODDLER between R5m – R8m•TEEN > R8m

•Giving Access to Market and mentorship for small entrepreneurs

Nontwenhle MchunuNontwenhle Mchunu

former former chocolate supplier chocolate supplier to PnPto PnP

• Coming together – • empowering individuals, • creating jobs, • alleviating poverty• Advice on and access to Financial

assistance

Sibusiso Tshabalala – entrepreneur – charcoal supplier to PnP group

Cwebeni Project•Specialised skills developed•Environmental impact •Community participation•Electricity and water• Telkom connection

CHALLENGES TO ACCESSING FUNDING

• Slow pace of process• Complicated application process• Conduit organisations/ agencies• Response time adjusted according to size of applicant ( smme/ start ups

cannot afford to wait)• Call centre system for advice and guidance• Small business cannot navigate through the red tape• Insufficient communication between market players • Lack of flexible funding

OUR EXPERIENCES• Dept of Agric partnership ( Siyasiza , Vrede, Food basket for

Africa, Dreamland Piggery )• DTI funding options (Fairharvest )– timelines do not benefit

small business• Lack of flexibility within parameters ( Rise uniforms ) • Govt contracts do not have favourable payment terms

Vrede, Free State

Bana Bagwala, Mpumalanga

Fairharvest Organic Farm, Limpopo

FairharvestOrganic farm, Limpopo

ED PUBLIC / PRIVATE PARTNERSHIP

Govt

PnP

PROPOSED SOLUTIONS • Utilise different models for different categories• Engage with all market players for a comprehensive

solution ( banks, retailers, agronomists, technologists etc )

• Flexible solutions driven by business needs• Limit media exposure until agreed size has been

achieved or sustainability guaranteed

HURDLES FOR SMME’S

•Compliance (Health / safety audit, SARS )•FINANCE•Business management skills ( business plan, budgeting, cash flow)•Capital investment ( buildings, boreholes, trucks)•Infrastructure (Fencing, electricity and security)

“Some opportunities only come along once in a life time” Saraah, flower supplier to Pick n Pay stores

• We have an obligation to create opportunities

•Enterprise development builds the nation, empowers individuals and helps meet demands of society – Ackerman Pick n Pay Foundation

“Some opportunities only come along once in a life time” Saraah, flower supplier to Pick n Pay stores

• We have an obligation to create opportunities

•Enterprise development builds the nation, empowers individuals and helps meet demands of society – Ackerman Pick n Pay Foundation

OUTCOMES• Firm commitment to growing ED in SA• Clear guidelines , roles and responsibilities• Efficient and effective PPP with deliverables• ‘One-stop’ platform for Small Business