Shoprite, the African largest supermarket retailer, operating more than 2,943 stores across Africa has introduced a new division known as Shoprite Next Capital, which will contribute to the growth of small and medium-sized businesses that are commercially viable while also providing access to its market for those businesses.
The Shoprite Group asserts that Shoprite Next Capital is the formalization of the crucial role it plays in the success of small and medium-sized enterprises (SMMEs) by providing access to its consumer market.
Maude Modise, GM for Enterprise & Supplier Development at the Group explained that “With Shoprite Next Capital our aim is to further enhance the participation of small and emerging suppliers in our business. Our focus will be on their specific needs and how best we can assist them,”
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Also, the entrepreneurs will be supported with marketing opportunities, working capital assistance, packaging and labeling support, data sharing, product range, and geographic expansion.
“This new division will provide SMMEs with easier entry into the Group’s retail market with direct access to buyers that understand their needs combined with personalized growth plans that will assist suppliers to scale up gradually,” Modise adds.
Remarks
During Modise’s remarks at the launch event held in Johannesburg on Tuesday evening, he explained that Shoprite Next Capital is a continuation of the retailer’s mutually beneficial partnership with its small suppliers.
“In the last fiscal year, we procured 32% more than in the previous year, from small suppliers, this has facilitated the expansion of a number of these suppliers both geographically and via product extension,” Modise explained.
According to the Group, its goal is to develop, capacitate, sustain, and grow small South African businesses, create jobs, and increase the localization of goods.
Shoprite Next Capital will serve as a one-stop-shop for SMME partners, offering marketing opportunities, working capital assistance, packaging and labeling assistance, data sharing, product range and geographic expansion, and potential private label partnerships.
Shoprite Partners With Suppliers
Shoprite has always worked with small and medium-sized businesses, but the creation of this division brings with its staff and resources that are solely devoted to meeting the requirements of SMMEs.
“The Group has always partnered with small suppliers, but now we are giving them additional focus and allocating dedicated buyers, essentially creating a separate value chain to the bigger supply chain system,” says Modise.
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Shoprite’s current suppliers include farming couple Nonhlanhla Mokoena Chimhandamba and Simbarashe Chimhandamba, who provide products from their Urban Grown Organics business, and Eiren Drake’s chicken feet and neck canning business Tin Stuf.
Observation
Shoprite opened its first stores in 1979 and has been thriving over the past 40 years with more than 2 943 stores across Africa and over 149 000 employees which serves local communities of 24 million people with the lowest price promise.
