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Table of contents $5$

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Technical aspects $10$

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CASE STUDY: Shoprite Holdings Ltd: Africa$$s largest fast$-$moving consumer goods

retail company

Background

From the moment the Shoprite Group $($SG$)$ opened its very first stores in $1979,$ it had a bold

vision for the future, one that would see the Group grow from strength to strength with

acquisitions and innovative expansion strategies, building it into the leading food retailer it is

today. Shoprite Holdings Limited is an investment holding company whose combined

subsidiaries constitute the African continent's largest fast$-$moving consumer goods $($FMCG$)$

retail operation. The group operates $2301$ corporate $($owned$)$ and $388$ franchise stores and $19$

trusted brands. As the largest private sector employer in South Africa, SG offered employment

to $153,726$ people in FY $2023.$ While the Group's primary business is food retailing, its offering

extends to a broad range of goods and services including household products, furniture,

pharmaceuticals and financial services.

Leadership

Leadership at SG comprises Non$-$executive Directors, the CEO and Deputy CEO, the Chief

People Officer, the Chief of Innovation and Strategy, as well as the Head of Investor Relations,

attend Board meetings as standing invitees, while other members of management and advisers

attend relevant committee meetings by invitation as and when required.

Pieter Engelbrecht is the chief executive officer $($CEO$)$ of Shoprite Holdings. He assumed the

role on $1$ January $2017,$ bringing extensive operational and management experience gained

over $20$ years with the Group. Engelbrecht has been a driving force behind the strategic thinking

and decisiveness that characterise the Group's actions. It has led it to become Africa's largest

food retailer and South Africa's largest private$-$sector employer. Boasting South Africa's most

valuable retail brand, Shoprite is the lowest$-$price leader on the continent. Engelbrecht and his

team are focused on implementing the Group's growth strategy throughout Africa to maintain

its lead in discount retail for the one billion customers it serves yearly. His key priority is

serving customers through a relentless focus on lowering prices through an optimised supply

chain and world$-$class operating efficiencies. His strategy is backed up by his conviction that

$$together we are stronger$,$ implementing a culture of teamwork and accountability where

every single employee contributes to taking the Shoprite vision forward and understands that

their role is serving customers. Pieter is passionate about change and has positioned the group

as a business with heart $$ where making a profit goes hand in hand with a responsibility to the

communities in which it operates. Engelbrecht is doubling down on the Group's efforts to

alleviate the continent's hunger and narrow the inequality gap through job creation, job security

and skills development, and nurturing small businesses. He is committed to innovating and

utilising the group's enormous scale to deliver the most affordable retail experience for the

Group's customers. Reflecting on $2023\text{'}$s report, Pieter expressed his gratitude for the extent to

which the Group's culture of commitment and service has resulted in achievements that

continue to benefit and sustain so many customers, employees, shareholders, suppliers, and

communities is clear.

Technology

The Group's technological platforms are continuously refreshed to keep abreast of

technological developments. A new ERP system and investments in digital transformation have

led to increased efficiencies, more collaboration and better innovation across the Group's

businesses. Continuous investment in customer science and big data improves decision$-$making

regarding promotions, products, store layouts and pricing.

Social responsibility

Shoprite acknowledges its responsibility to manage the impact of its operations to ensure long$-$

term economic, social and environmental sustainability. Although Shoprite operates in diverse

African countries, most face challenges similar to those in South Africa, namely, significant

unemployment and food security levels at the household and community levels. Climate

change will exacerbate these challenges, potentially disrupt production patterns, and increase

operational costs for the food retail sector. Shoprite is committed to fighting hunger, supporting

food$-$insecure and disaster$-$struck communities, enabling access to the economy $$ particularly

for women $$ and developing the skills needed to support its growth and that of the broader

South African economy.

Shoprite recognises women's significant role in South Africa and in Shoprite as customers,

employees and suppliers. The Group works to empower women who have or are starting small

businesses or home industries and to identify opportunities for those with the potential to

supply Shoprite, helping the