Arie Neven
Chief executive: Traditional Retail

Executive committee Colin Bresler Chief executive: Joshua Doore Johan Coetsee Group executive: Finance Toy de Klerk Chief executive: Russells Julian Hanmer Group executive: Logistics David Hirsch Group executive: Merchandise and Marketing Pat Kimmince Chief executive: Barnetts Analysis of Group operating profit

Johan Kok Chief operating officer Rénier Krige Human Resources executive Mike Roberts Chief executive: Price ’n Pride Len Rundle Chief executive: Morkels and Electric Express Anthony Smith Information Technology executive: Traditional Retail Matthew van der Walt Chief executive: Bradlows and Supreme

Review

The past year was, in more than one dimension, a cornerstone year for the division in its endeavour to adopt and adapt to the new business and operating model as a pure retail organisation, decoupled from Financial Services, but establishing an optimised partnership with Financial Services.

The complexity of this endeavour was compounded by one of the toughest trading environments ever experienced, driven primarily by:

• Negative economic conditions having an impact on a significant slowdown in market demand;
• The migration to one retail technology platform to remove complexity and increase efficiency; and
• Embarking on a journey of migration from a decentralised logistics environment to one of a centralised business process, with a successful pilot delivered in Botshabelo.

Fundamental changes under these conditions test the social and leadership fibre of an organisation and it can be stated with confidence that the Traditional Retail division successfully journeyed through this transformation, maintaining and growing its market share.

The division is ready to take advantage of improved economic conditions and increased demand for its merchandise and services.

Outlook

The new financial year offers significant optimisation opportunities through the:

• Launch of a customer centric retail practice through the ‘Art of Service’ initiative;
• Contribution of the roll out of a centralised logistics capacity and capability nationally;
• Optimisation of merchandise management;
• Development of retail leadership capacity and competence;
• Closing of the gaps to achieve the retail return on revenue benchmarks set for each brand in the division; and
• Planning the migration to a new Enterprise Resource Planning (ERP) system that will facilitate the optimation of business processes and will in turn unlock value.

Achieving the envisaged retail return on revenue benchmark target is a collective goal to be driven relentlessly and is central in our quest to become world-class retailers.