Pick And Pay Case Study: Pick N Pay

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The company listed on the JSE (Ltd) that I have decided to focus on is Pick n Pay. I have chosen this company as, since the first store was established in 1967, 941 stores have been opened countrywide in South Africa (FastMoving, 2012), which leads me to believe that this specific franchise has a very good sense of business sustainability.
Pick n Pay is very much concerned with sustainability according to the triple-bottom line. They ensure that they are constantly looking after it’s customers, looking out for the environment, and ultimately making a profit.
In order to look out for their customers, Pick n Pay released a customer rewards programme called “Smartshopper”. The programme, launched in March 2011, allows the franchise to get to know and understand each customer better by observing each individual’s shopping habits and references. The company has direct access to many Smartshopper customers via e-mail and/or sms, which allows the business to communicate with their customers in a more engaging manner. Pick n Pay asks for feedback from customers, and sends targeted marketing communications directly to them. All of this is done in an effort to both design and execute marketing campaigns and product ranges which are more relevant to their customers by extracting insights from the customers shopping habits data, as well as to assist the company in growing their sales volumes – which will ultimately lead to an rise in profit (FastMoving, 2012).
Pick n Pay is very concerned about the happiness and satisfaction of their customers, which is why each franchise has a customer care line where customers can phone and/or e-mail in order to get any help/attention they may need concerning their complaints, queries, suggestions and comp...

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...pting a more sustainable lifestyle (PicknPay, 2014). One of the ways in which Pick n Pay is doing this is by promoting a “green initiative” called ‘One Million Acts of Green’. The customer is invited to go to Pick n Pay’s Facebook page, where there can scroll through a list of various, every day acts which promote a sustainable and green future. They can then endeavour to perform one or more of these acts in their everyday lives, and are encouraged to share the initiative with friends, colleagues and relatives.
When it comes to profit, Pick n Pays share price on the JSE has vaulted 29% within the last year. The franchises numbers for March showed a turnaround in margins from 17.4% last year up to 17.5%. Sales increased by 7.7% to R63.1 billion. Trading profit improved by 18.5% (and 34.4% on a comparable basis after three consecutive years of decline) (BDLive, 2014).

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