Plaza,Nelspruit. Mbabane. Plaza SuperSpar, Nelspruit. By Hippo Zourides

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Lester Carter
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A tale of two stores Plaza,Nelspruit By Hippo Zourides Mbabane Two stores, in two different countries, share the same objectives by being in tune with their respective LSMs Whether its in SA or the

We illustrate the similarities between two stores, which aim at a similar market, but trade in two different countries.

Supermarket & Retailer investigated two stores aimed at middle to lower LSMs (5 to 7) to see how they are gaining ground on their competitors.

1 A tale of two stores Plaza,Nelspruit By Hippo Zourides Mbabane Two stores, in two different countries, share the same objectives by being in tune with their respective LSMs Whether its in SA or the other side of the border of the South African Customs Union (SACU), trading patterns are similar. We illustrate the similarities between two stores, which aim at a similar market, but trade in two different countries. How are you displaying your merchandise to capture the imagination (and the buying power) of your customers? Supermarket & Retailer investigated two stores aimed at middle to lower LSMs (5 to 7) to see how they are gaining ground on their competitors. Plaza SuperSpar, Nelspruit Plaza SuperSpar is located near the bus and taxi ranks of Nelspruit and have for years serviced the needs of their customers by adjusting their displays to appeal to this target market. Stack em high, and kiss em goodbye! Plaza SuperSpar s bulk displays certainly bring in the customers, as the following gallery shows: Eye-catching displays of all basics are easily obtainable. Good colour blocking at ticketing shout out buy me! A normal washing powder section has been transformed into a bulk area. 23

taxi to remote suburbs of the city Frozen

that sells large volumes of merchandise.

2 Ample refrigeration ensures that the goods can withstand the trip by car or taxi to remote suburbs of the city Frozen fish displayed to appeal to the shopper at attractive prices. Easy-to-carry bulk egg carry packs overshadow the small egg display in the background. A special in the refrigerated space can be highlighted with a special display that sells large volumes of merchandise. By removing the glass, customers can also help themselves and have their purchase weighed and priced by an assistant.

3 IQF chicken displayed in bulk ensures that replenishment is kept at a minimum at the busiest times. KVIs are displayed in bulk with bold pricing advising the consumer of the savings. Huge displays of forequarter beef attract the consumer to the counter and very little time is spent packaging the purchase. The range of sunflower oil is limited but the message to the consumer is value for money. 25

Mbabane SuperSpar Across the border, the Mbabane SuperSpar also focuses on the middle LSMs, while still appealing to the higher LSMs that live in Swaziland s capital city.

The landlocked kingdom of Swaziland is influenced by its main neighbour, South Africa, as the local currency, the Emalangeni, is linked to the South African Rand and all the repercussions that the

The depreciation of the Rand versus all major currencies produces a range of ripple effects, more specifically the cost of fuel and energy, but this also extends to the importation of groceries and

4 Mbabane SuperSpar Across the border, the Mbabane SuperSpar also focuses on the middle LSMs, while still appealing to the higher LSMs that live in Swaziland s capital city. Food retailing in Swaziland Although the local economy has shown very little growth, entrepreneurs still find opportunities to grow their slice of the cake. The landlocked kingdom of Swaziland is influenced by its main neighbour, South Africa, as the local currency, the Emalangeni, is linked to the South African Rand and all the repercussions that the common customs arena bring to the table. The depreciation of the Rand versus all major currencies produces a range of ripple effects, more specifically the cost of fuel and energy, but this also extends to the importation of groceries and perishables from its neighbour. Recently, Swaziland has not shown any real growth (2,0% average growth since 2001) much lower than its neighbours who grew from 3,5% (South Africa) to 8% (Mozambique). The addition of VAT onto items such as fresh meat did not help the Swazi consumer, and the retail trade felt the effects of such a policy decision. 26 HMR appears to be the real strength of this store, especially during the lunch hours and early evening trading. The fresh produce department has produce sourced both locally and from South Africa. Many hawkers support the store and go on to sell their produce in the streets of Mbabane. All baby requirements from toiletries to bulkier items like cots and prams can be found in one area manned by a permanent staff member, and ensures that a mother does not shop anywhere else for her baby s requirements. Let us grow Notwithstanding this challenge, the Mansoor family who have been trading for decades in the country, decided to expand their business by opening a brand new SuperSpar in the heart of Mbabane. This new 2 000m 2 store was added in August 2013 to a portfolio of businesses that includes another Spar store in Ezulwini, a number of trading stores in small Swazi locations and a cash n carry outlet. Owners Nassar and Arshad Mansoor identified an excellent position in Mbabane accessible both to the walk-in taxi customer as well the more affluent, as evidenced by a large parking lot with many 4x4 vehicles. With a staff complement of120 people, the store was fitted with 13 checkout points that ensure that no long queues develop, other than at certain peak times.

The fully Halaal meat counter has attractive displays of

quality trolleys for Retail and wholesale With over

market leader of South Africa in the steel wire industry.

and carts that meet the particular requirements of

With sizes ranging from 235 litre to 46 litre capacity we

Continually looking for ways to cater for their

Catapult CGSR003 The LinkMed pharmacy is operated

assistance of the design team from Spar Lowveld and its

wide aisles, exciting gondola end displays, KVIs well

find all her child s requirements in one area manned by a

Here, the shoppers will find baby foods and formulas,

5 The fully Halaal meat counter has attractive displays of pre-packed meats. quality trolleys for Retail and wholesale With over eighty years of experience, Cape Gate is the recognised market leader of South Africa in the steel wire industry. We manufacture a wide range of quality shopping trolleys and carts that meet the particular requirements of wholesalers and retailers throughout Africa. With sizes ranging from 235 litre to 46 litre capacity we fulfill the needs of the largest cash and carry as well as the smallest supermarket. 235l, 210l & 180l Shopping trolleys 160l Duplex Shopper Continually looking for ways to cater for their customers, the store has incorporated a little coffee shop for added convenience. 85l Galaxy 70l flexi-shopper & 90l flexi-shopper Deluxe Catapult CGSR003 The LinkMed pharmacy is operated independently and is located right at the store entrance for convenience. Store design The store layout was completed with the assistance of the design team from Spar Lowveld and its easy-to-shop layout follows all the modern norms of today wide aisles, exciting gondola end displays, KVIs well distributed throughout the store and some novel focus areas. Examples include a novel Baby corner, where a mother can find all her child s requirements in one area manned by a permanent staff member. Here, the shoppers will find baby foods and formulas, nappies, baby and child patent medicines, baby toiletries and even 46l Mini-Shopper HeAD office - CAPe town Tel: +27 (21) ctsales@capegate.co.za JoHANNeSBurG Tel: +27 (11) /2 Port elizabeth Tel: +27 (41) BloeMfoNteiN Tel: +27 (51) GeorGe Tel: +27 (44) /7 DurBAN Tel: +27 (31)

a cot or a pram. Store management tell us that the aim is to keep the mother as a permanent customer as her baby s needs grow and change over time.

However, another focus area, the deli and HMR area, appears to be the real strength of this store especially during the lunch hours and early evening trading.

The fresh produce department also attracts many consumers with produce sourced both locally and from South Africa.

6 a cot or a pram. Store management tell us that the aim is to keep the mother as a permanent customer as her baby s needs grow and change over time. Star department With over transactions per month, the store is busy through most of the day. However, another focus area, the deli and HMR area, appears to be the real strength of this store especially during the lunch hours and early evening trading. I could not find a quiet moment to photograph the department, as there was a continuous flow of customers sampling and buying delicious food from these counters. The fresh produce department also attracts many consumers with produce sourced both locally and from South Africa. Many hawkers support the store and go on to sell their produce in the streets of Mbabane. Quality is the priority with price a secondary consideration. ATMs outside the store entrance allow customers to draw cash and the kiosk sells not only the traditional cigarettes, but is also an MTN reseller and supplier of pre-paid electricity vouchers. Energy efficient When designing the store, the Mansoor family researched ways and means of becoming more efficient, in order to compete with its peers in town. The biggest decision was to invest correctly in capital expenditure terms to produce on-going savings in energy costs (see more details in our Refrigeration feature in this issue). Research showed the Mansoors that by merging their air conditioning and refrigeration plant, the resultant saving in energy costs would give them options to fight the competition or to increase the bottom line. Savings exceeding R per month attest to the fact that their decision was the right one. Facing all major competitors within metres of the front door, the store is continuously looking for ways to create a connection with the local community. Their social responsibility investment includes support for a number of local feeding schemes. Even though the Swazi economy is not projected to grow dramatically, the Mansoor family is dedicated to finding innovative ways to service their customers and achieve growth above the standard norms of the country. The tables in front of the deli/bakery/hmr counters are loaded with ready-to-eat merchandise. Neat bulk displays appeal to the bulk shopper in Swaziland. The Spar HaBA treatment creates a store within a store ambiance for the consumer. 28

A florist section complements the fresh produce area

A florist section complements the fresh produce area STOREWATCH By Hippo Zourides Retail lessons from the platteland It was back in 2008 when Albie Coetzer and Des Moller entered into a venture that was destined to make a mark on their lives and those of