| Mon 12 Nov 2007, 8:59 | | PIK - Pick `n Pay Stores Ltd - In R110m major bran |
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PIK
PIK
PIK - Pick `n Pay Stores Ltd - In R110m major brand, product change and
innovation 400 stores to be rebranded; +450 new or repackaged lines; global,
local experts to join management team
Pick `n Pay Stores Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1968/008034/06)
Share code: PIK ISIN: ZAE000005443
PICK `N PAY IN R110M MAJOR BRAND, PRODUCT CHANGE AND INNOVATION
400 stores to be rebranded; +450 new or repackaged lines; global, local experts
to join management team
(Johannesburg, 12 November 2007) The face of retail in South Africa is set to
change, with Pick `n Pay announcing today that it would commit about R110-
million to a major initiative to change its brand identity and introduce and
repackage a large number of product lines. The name "Pick `n Pay" will remain
unchanged. The brand change is one of the largest in South Africa to date and
funding will be a combination of new investment and allocated refurbishment
costs. Expenditure will be over two financial years.
The first 30 corporate stores - all flagship or high volume stores - and 25
franchise stores will be transformed with the new visual identity before
February 2008 with all stores set to be completed during 2009.
The new Pick `n Pay logo is an evolutionary change, which while quite different
from the original, retains key features that have made Pick `n Pay distinctive
in the retail environment.
At the same time, the company confirmed that it would be making a substantial
change to its customer communication. Already one of South Africa`s most
significant advertisers, Pick `n Pay will be increasing its spend on electronic
media in a bid to increase and consolidate its reach, and changing the way in
which it communicates to consumers to increase and entrench differentiation. The
company would also be launching a new customer magazine, `Fresh Living`,
designed to talk directly to a broad cross section of Pick `n Pay`s customers.
To promote general merchandise in its 18 hypermarkets, Pick `n Pay would also
produce a new, regular, 64-page lifestyle catalogue with an initial print run of
one million.
In a move designed to strengthen its position in the LSM 8-10 market, the
company would also be launching over 450 new and repackaged lines in its "Fresh"
range. This includes over 300 ready-to-eat (convenience) meals, over 80 fresh
produce lines, and more than 50 new meat products.
Following quickly will be a range of more than 50 organic products to complement
its organics range, which in the last financial year grew some 60%. These
products will all be launched under the Pick `n Pay brand, replacing the
existing Choice and Foodhall brands. All these products will be phased into
stores over the next six weeks. South Africa`s biggest private label, No Name,
would also undergo brand enhancement, but will retain its name.
Pick `n Pay Chief Executive Nick Badminton said: "Pick `n Pay is entering an
accelerated period of change and it`s a very exciting time for us. We have
undertaken an extensive strategy realignment process over the past nine months,
of which our brand was a key component. During this time, we have listened to
nearly 4,000 customers in a large scale research and consultation exercise.
"This process, together with a detailed assessment of our store performance, has
resulted in a renewed focus on improving our customers` shopping experience at
Pick `n Pay, particularly the quality and consistency of our fresh offer. This
move is the first of many customers can expect to see over the coming 12-18
months."
Said Badminton: "In assessing our brand change, we needed to be mindful of the
fact that we provide over 22,000 stock keeping units in our typical supermarkets
and more than 40,000 in a hypermarket, while our stores cover a total of 1.4
million square metres, equivalent to more than 250 rugby fields. We also
generate about 30 million till slips every month at Pick `n Pay. We thus have a
very clear idea of enormity of the task ahead of us.
"Altogether, over the next two years, the new brand will be effected to 450
stores, 1,200 product lines, well over 40,000 uniforms and name badges and a
range of other applications."
Consumer commitment will also receive a boost, with the company committing
itself to some bold new promises to its customers. The first of these is that if
there is more than one person in front of a customer in a queue, the store will
always aim to open another until all tills are open. Toll free customer lines
will be advertised in-store to aid delivery on this commitment.
To emphasise the importance of fresh food, Pick `n Pay will also promise
customers that if they find any expired product on any shelf in store, the
customer will receive a fresh one for free.
Enhancing the strength of its senior management team, the company also confirmed
that it had secured a number of highly experienced experts to join the company.
Steve Hoban, currently Director of Global Procurement at the world`s largest
retailer, Walmart, will join early next year to bolster Pick `n Pay`s trading
team. Malcolm Green, who previously headed up distribution for a South African
retail chain, will lead Pick `n Pay`s supply chain, a key development area in
the company. Cobus Barnard, also a retail specialist, will shortly join the
company to further the company`s convenience strategy.
These developments come two weeks after Pick `n Pay announced that it would
convert 80 of Score stores to Pick `n Pay franchises; a move that will create 80
black entrepreneurs over the next three years.
Three months ago, the company opened its new distribution facility at Longmeadow
in Johannesburg, the first major move away from its direct to store delivery
model. Pick `n Pay is already seeing substantial improvements in the quality of
its fresh produce through better quality control procedures.
"Pick `n Pay has built its reputation on consumer sovereignty. We record over
350 million consumer transactions every year across 6,722 till points. That
means 350 million times we engage directly with our customers and a lot of
opportunity to make a difference.
"While we were delighted to hear from our customers that we were one of the most
trusted brands in South Africa, the message was clear: Pick `n Pay must set
itself new standards if it is to remain a fresh, vibrant company, and South
Africa`s number one retailer. All of what we are doing addresses their demands
very directly and it is appropriate then, that our new tagline is "Inspired by
You".
"The changes we`re making are recognition that to remain on top in an
increasingly competitive retail environment, we have to do what we already do
well, but much better. In summary, we need to innovate constantly."
"One thing that will not change, however, is what Pick `n Pay stands for. We
have always taken the role of consumer champion and we will continue to do so,
understanding that customer trust is our most critical asset."
For further information, please contact:
Tamra Veley: 083 251 3658
Dani Isaacs: 083 308 6260
For scheduled interviews: Dominique van Onselen 082 802 8184For visuals: Enid
Vickers 083 460 3910
NOTE TO EDITORS - WHAT`S CHANGING
The look, feel and logo
Pick `n Pay`s new logo is contemporary, cleanly designed and friendly - but
still Pick `n Pay, through and through. The new logo`s blue and red colours are
fresh, vibrant and true to the spirit of the company. The logo will be widely
used for consistency and brand recognition.
In addition to the full logo, a short "nickname" version using just "PnP" has
been developed for use where space is limited, such as on till slips or
packaging.
Images used in stores and in advertising will be informal and relaxed, with a
touch of humour.
The tagline
Pick `n Pay`s customers themselves chose the company`s new tagline: "Inspired by
You". These three words articulate the consumer sovereignty legacy of the
company. Customer focus groups across a broad spectrum were shown four different
taglines, and "Inspired by You" was the one they liked the most.
The new work wear
Pick `n Pay is currently testing a new range of staff work wear in six of its
stores, including relaxed tops, trousers, skirts and aprons in an array of
styles and colours. Once it is established which ones both employees and
customers prefer, the range will be finalised and introduced to all stores by
next summer.
The new magazine and catalogue
"Fresh Living", a new monthly magazine for customers, will soon be available in-
store. Edited by award-winning TV cook and writer Justine Drake, each full
colour issue will contain ideas, tips and recipes for customers to make the most
of their food purchases. Fresh Living will also showcase Pick `n Pay`s wide
range of products, and champion healthy, seasonal food.
Pick `n Pay will also, for the first time, produce a free, 64-page product
catalogue. Divided into three sections - outdoor, home and fashion - the
catalogue will feature the full range of Pick `n Pay products, using photography
reflecting the new, fresh branding.
Sponsor: Investec Bank Limited
12 September 2007
Date: 12/11/2007 08:59:51 Produced by the JSE SENS Department.
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