Pick n Pay: Challenges Faced in Gaining Market Share by a South African Retailer

Abstract

The case focusses on the main retail mix elements in the supermarket sector, namely location, customer experience, and price/promotion but inevitably interlinks with other departments. Pick n Pay, once the largest supermarket retailer in the country, has been losing market share to competitors. The Southern African landscape is detailed to provide context to the dilemma. The high income disparity, physical separation of affluent and impoverished areas, and rising cost of living for the average consumer are all key contextual elements. Dave Claves has been charged with the objective of increasing Pick n Pay’s market share and the remainder of the teaching case follows him as he thinks through the primary issues related to the dilemma.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Graph Showing Comparative Population Sizes

Figure

Source: World Bank, 2016

Exhibit 2: Multi-Format Distribution of Pick n Pay

Figure

Source: Pick n Pay, 2013

Exhibit 3: Pick n Pay Express Garage Franchise

Figure

Source: BP South Africa, 2016

Exhibit 4: Pick n Pay Store Distribution

Figure

Source: Pick n Pay, 2013

Exhibit 5: Pick n Pay Headline Earnings per Share

Figure

Source: Pick n Pay, 2013

Exhibit 6: Collectable Sets Used by a New Zealand Supermarket

Figure

Source: Edwards, 2015

Exhibit 7: Brand Match Campaign Run by UK Sainsbury

Figure

Source: J Sainsbury plc, 2012

Exhibit 8: Pick n Pay Five-Year Financial Review

Figure

Source: Pick n Pay, 2013

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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