The Shoprite Group committed to lower prices 40 years ago and this was not just a headline, but a promise. A promise to the communities of Africa, a promise that the Group is built on, that is engrained in the fabric of how we do business, a promise that we keep.
We keep our prices lower by having a relentless focus on cost savings and value chain efficiency.
If we can help our suppliers to save costs, it reduces our product costs, if we can save operational costs, it means we can deliver the same product on our shelves for less.
Affordability of food touches everyone, especially those very price sensitive consumers who represent the bulk of the Group’s customers. Having a vision and strategy that speaks to each individual on a personal level is powerful to facilitate translation of strategy into actions. From buying to packaging, from forklifting to supply chain and store management, from selecting wider ranges for choice to subsidising basic food items, each department plays a vital role in creating a chain of efficiency and cost saving that ultimately leads to lower prices.
Within the Shoprite Group, we measure our internal food inflation and compare this to the available national official food inflation numbers. The long term trend shows that our internal inflation remains consistently well below national averages, and this difference quantifies the impact of our price leadership. The trend also shows that our mechanisms for cost saving are sustainably successful and do not only deliver short term extraordinary savings.
We truly believe that we serve the communities of Africa when we provide food at the lowest prices.
The uncompromising commitment towards lower cost has resulted in considerable customer loyalty and appreciation. This is evidenced by the numerous public awards the Group’s brands have won over the years.
In 2016 the Group won the Retail Grand Prix Award for the eighth consecutive year and took the top spot in the Grocery Store category in the Times Sowetan Retail Awards Survey for the seventh time.