Engaging with our stakeholders

Our ability to create long-term sustainable value depends on open and constructive engagement with all our stakeholders. Stakeholders are those parties that can affect or be affected by our activities, objectives and policies. The Group identifies its key stakeholders through ongoing engagement with individuals, groups and organisations. Engagement enables us to identify and act upon the issues that affect our stakeholders and our business, improves our understanding of stakeholders’ expectations, aspirations and interests, and strengthens the transparency and accountability through which we have established valued relationships.

The Group’s stakeholder universe includes customers, suppliers, shareholders, franchisees, employees, regulating authorities, media, various levels of government and community groups. We are committed to balancing their interests in a responsible and respectful manner. Here we detail our engagement with our key stakeholders, focusing on those groups that have either a significant interest in the operations of the Group or have significant influence over the way we do business and create value.

Customers 885 million transactions with customers this year

What our customers tell us is most important to them
  • More convenience
  • Low prices, good value
  • Product quality and food safety
  • Good, consistent availability
  • Great service
  • Rewards for loyalty
  • Community involvement
How our strategy responds to customer needs
  • Convenient store locations
  • Leading product range
  • Great prices and promotions
  • Excellent place to shop
  • Compelling value-added services
Why we engage  
  • To improve our customer offer
  • To respond to the changing needs of our customers
  • To hold ourselves accountable to those we serve
How we engage  
  • Daily engagements in our stores
  • Dedicated customer director
  • Customer care line (0860 30 30 30)
  • One-on-one meetings
  • Regular customer surveys, consumer forums and online customer panels
  • Website www.picknpay.co.za and various social media forums
  • Smart Shopper loyalty programme

Community Continued focus on community development and upliftment programmes, including through employment and buying from local communities

What our communities tell us is most important to them
  • Job creation
  • Access to safe food, at low prices
  • Poverty relief and community outreach programmes
  • Environmental responsibility
How our strategy responds to community needs
  • Doing good is good business
  • Be environmentally responsible
  • Develop diverse and ethical suppliers
  • Promote healthy and sustainable living
Why we engage  
  • To drive and share in the success and wellbeing of the communities in which we trade
  • Local communities engage with those businesses that engage with them, promoting the sustainability of both
How we engage  
  • Forums such as township co-operatives, university partnerships and the Pick n Pay Schools Club
  • Individual stores’ varied social responsibility programmes
  • Collaboration with the Ackerman Pick n Pay Enterprise Development Fund, including income generation, community enterprise development and food security initiatives

Employees We created 4 500 new jobs this year through our store opening programme

What our employees tell us is most important to them
  • Competitive remuneration
  • Training, career development and wellness programmes
  • Fair and reasonable working hours, with certainty of hours and shifts
  • Sustainable business performance
  • Working for a responsible and ethical corporate citizen
How our strategy responds to employee needs
  • Most talented South African retail business
  • Effective and lean organisational structure
  • Advance employee opportunity and diversity
Why we engage  
  • To get the best out of our team, we regularly engage with our employees on strategy, key performance indicators, financial performance and the role we expect each individual employee to play in our business
  • To identify and recognise good performance
  • To identify training and development needs
  • To hold each team member accountable for the job they do
How we engage  
  • Regular management updates
  • Employee surveys
  • Monthly internal publications
  • In-house television and radio communications, and employee conferences
  • Skills development and training
  • Ongoing engagement with labour unions

Franchisees 614 of our stores are owned and managed by franchisees

What our franchisees tell us is most important to them
  • The opportunity to build a profitable and sustainable business
  • Security and sustainability of supply, timely delivery of products, competitive pricing, product innovation, marketing support, quality of products and food safety
  • Opportunities for cost reduction
  • Resource efficiency (energy, water, waste, logistics)
  • Transformation and enterprise development
How our strategy responds to franchisee needs
  • Offer the most successful, mutually beneficial franchise model in the retail industry
  • Operate as a sustainable franchisor of choice
Why we engage  
  • Our franchise stores are an important part of the Pick n Pay business, adding significantly to our scale and brand reach
  • Our franchise model works well when our franchisees have opportunities to succeed and have an active voice in the business
How we engage  
  • Regular store visits by franchise management team and service area consultants
  • Bi-monthly meetings between regional operational teams
  • Bi-monthly Chief Executive Officer forum meetings with national franchise representatives
  • Corporate social investment programmes in the communities in which our franchisees operate
  • Franchise conferences

Suppliers The Group has more than 10 000 suppliers and service providers

What our suppliers tell us is most important to them
  • Fair pricing, research and development support, transparent contracts and agreements, infrastructure and logistics support
  • Opportunities for cost reduction
  • Transformation and enterprise development
  • Resource efficiency (energy, water, waste, logistics)
How our strategy responds to supplier needs
  • To build fair, efficient and mutually beneficial business relationships
  • A cost effective and efficient supply chain
  • Product innovation to meet evolving customer needs
  • Continual development of small businesses and diverse and ethical suppliers
  • Contribute to job creation
Why we engage  
  • To ensure that we are able to source a leading range of high-quality produce and merchandise at the best possible prices and that we can commit to on-shelf availability, food safety and sustainable and ethical business practices
How we engage  
  • Regular meetings in line with merchandise cycle timelines
  • Regular food safety audits at production facilities
  • Ongoing store visits with suppliers
  • Joint business planning sessions
  • Supplier conferences
  • Dedicated enterprise development programme

Shareholders Dividends have grown at a 20% CAGR over the past 4 years

What our shareholders tell us is most important to them
  • Improved and sustainable return on investment
  • Understanding our business model, strategic direction and profit drivers
  • Access to timely, accurate and relevant information
  • Sufficient free float of shares for trade
  • Good corporate governance
  • A socially responsible and ethical corporate citizen
How our strategy responds to shareholder needs
  • Generate consistent profits in a sustainable manner
  • Operate according to the highest corporate governance principles
  • Follow innovative business practices at acceptable levels of risk
  • Capital efficiency and working capital excellence
  • Provide attractive returns on investment
Why we engage  
  • To provide our shareholders with a comprehensive, transparent and objective understanding of the business, so that our shares may trade at a fair value and that our shareholders are aware of the risks and opportunities associated with investing in the Group
How we engage  
  • At least four formal engagements a year: two financial results presentations, an annual general meeting and an investor day/strategic update
  • Regular engagement with investors, analysts and fund managers
  • Direct engagement on proposed resolutions prior to annual and extraordinary general meetings
  • Dedicated investor relations website at www.picknpayinvestor.co.za