Western Cape Business News

Send  Share  RSS  Twitter  15 Nov 2010

RETAILING: Restructuring At Pick n Pay


Recent Western Cape Business News

Pick n Pay yesterday announced a major structural change to the executive management of the group. CEO Nick Badminton said that the changes were required in order to streamline the company’s operations with a very firm focus on customer sovereignty, efficiency and area specialisation.

The current Exco, Retail Management Board and Group Enterprises Board are replaced by a Group Executive consisting of accountabilities in Marketing and Sustainability, Buying, Operations, Supply Chain/IS, Franchise, Group Enterprises, Finance, HR, Transformation and Customer.

Said Badminton:  “these changes form part of a wider programme to improve our business over the coming years and are a very key part of our overall strategy for the future.

Over the last three years, we have made significant improvements to Pick n Pay and we’re a very different company to the one we were in 2006, notably the fact that we are a more focused operation, having converted the Score stores to Pick n Pay and announced our intention to sell our Franklins operation in Australia. We’ve also made significant improvements to our customer offer.  Our fresh food is vastly improved in terms of range and.  Our private label brands have been redeveloped and repackaged.  We’ve launched a small store format and have increased our footprint into the high-potential LSM 4-7 market.

We also have made substantial investments in becoming more efficient.  We have completed the rollout of SAP, launched central distribution in the inland region, and embarked on a programme to reduce the cost of those items we purchase but do not sell on to customers.

Importantly, we have made huge strides in becoming a more responsible and sustainable business and have recently announced our intention to commit zero waste to landfill by 2015 and reduce our carbon emissions substantially.

Badminton confirmed further changes as part of the announcement.  A specialised category-based buying function would be implemented to ensure that each element of the offer was developed with deep customer understanding.  Marketing would assume a more strategic responsibility for developing offer guidelines in addition to its traditional advertising and public relations work.  An integrated supply chain team would be established to implement the national supply chain strategy and ensure efficient flow of product to stores.  All of these changes would help support the stores in delivering exceptional customer service.

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