Woolworths pops out iSentials pilot outlets in Western Cape
May 14, 2004
By Neesa Moodley
Durban - Woolworths pilot iSentials stores in the Western Cape are rapidly rolling out at a rate of one every two weeks.
The first store opened in Parklands four weeks ago, followed store openings in Vredenburg and Athlone at intervals of a week. The fourth store was to be launched in Kenilworth this week.
"Initial customer response has been encouraging and incredibly positive," said Steward Matlala, the chief executive of iSentials. "When we opened in Athlone, there were queues outside the store for three consecutive days.
"The iSentials store in Parklands has averaged 600 customers a day, taking into account that weekends are busier than weekdays.
But Kenilworth resident Anna Strebel said the marketing campaign could not have been very wide as she had never heard of Woolworths iSentials or seen one in her neighbourhood.
Matlala said the stores were not competing with Checkers Shoprite or Pick 'n Pay.
"Pick 'n Pay and Checkers are huge stores and we can only learn from them. However, we are targeting daily and weekly shoppers rather than people looking to do their monthly grocery shopping."
Brian Coppin, the managing director of Fruit and Veg City Holdings, said yesterday that as an opposition store he did not perceive iSentials as any threat.
There are 65 Fruit and Veg City franchises nationally.
"I've seen some of the pilot stores in the Cape and they are definitely not carrying out the concept properly," he said.
The iSentials stores, a new concept in the country, were designer grocery stores with affordable prices and fresh products, Matlala said.
The new stores are targeting living standard measure market five to seven, which is believed to be the fastest growing market in the country and is expected to be worth R40 billion a year, in the next 10 years.
Operating costs are being kept to a minimum, with just 10 people running the iSentials head office and staff of seven to nine at each store.
Woolworths shares rose 0.83 percent to R7.26 yesterday, above the 0.79 percent rise of the general retailers sector.
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