Property Development » Property Management

The Shoprite Checkers Property Division, in its capacity as the Shoprite Group’s property arm, is tasked with the supermarket expansion program as its main goal, either by identifying and leasing new supermarket premises or developing new shopping centres to accommodate a supermarket.

This function includes conducting ongoing market research, aimed at identifying trends and shifts in consumer patterns and the identifying new growth opportunities for extending the Group’s trading operations and increasing its market share. In respect of new retail developments and the redevelopment of its existing properties, it oversees every stage of the planning-, design- and construction process.

The division is also tasked with the management and administration of the Group’s supermarket leases and the existing property portfolio (inclusive of head-leased properties). Our existing property portfolio now includes owned buildings and head-leased properties, same consisting of retail shopping centres, stand-alone supermarkets, distribution centres and offices located in 9 countries across the African continent (including the RSA). Most of the Group’s long-term head-leased properties resulted from the historic acquisition of Checkers in 1991 and OK Bazaars in 1997. The head-leased property portfolio has been profitable since 2006.

Regarding new stores and refurbishment of existing outlets, an in-house team of architects and draughtsmen is responsible for producing the internal store lay-outs. The focus in this instance is on the standardisation of store lay-outs, so as to facilitate effective stock management and the optimisation of trading space.

The division’s property administration department is responsible for the handling of all lease negotiations, whether with external landlords for the Group’s supermarket outlets, or the subletting of shops.

Given the Group’s continued emphasis on remaining strategically positioned in the market place, properties which are considered to be non-critical and matured are marked for disposal in order for the Group to capitalize on and finance new development- and investment opportunities.

Based on extensively researched demographic projections, the Group is continuously effecting strategic land acquisitions. The said property investments were made not only for immediate utilization, but also for development over the medium term - so as to avoid excessive premiums in future, upon these areas experiencing a rise in popularity

In summary, we are therefore responsible:

• To develop the retail business by identifying business opportunities for the Group though acquiring sites for development or securing long term corporate leases.
• To administer the leases in respect of the supermarkets
• To develop new buildings/centres in order to accommodate new supermarkets, both nationally and internationally; and to conduct all redevelopments of buildings and store refurbishments.
• To manage and administer the portfolio of owned and headlease buildings/centres

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