C O M P A N Y O V E R V I E W
Makro expands its range with new ecommerce platform The South African warehouse club is giving its customers ever more ways to buy ever more quality affordable products, while maintaining a universally excellent experience across multiple channels Written by: Joel Levy and Produced by: Alex Barron
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‘We are very much positioned to cater to the needs of the higher-end customer who is looking for good quality and good value’ – Melanie Louw, Marketing Director
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ith the launch of its new ecommerce platform, South African warehouse club distributor Makro is further broadening its considerable appeal as it grows its market share based on a diverse and affordable range of quality products. The last three years have seen a spate of activity for the company, in which time it has almost doubled its store presence, with the opening of nine outlets, and another large development planned for 2015, alongside a push into upgrading its delivery capabilities. Makro online went live in March, complementing the 19 physical stores across the nation from which it distributes more than 55,000 product lines in three major categories: food, liquor and
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New directional signage helps the customers find their way around the store
general merchandise, and conveniently bringing the company’s offering to ever more consumers. Marketing Director Melanie Louw expects this new platform to go from strength-tostrength following its early success, adding to the ‘one-stop-shop’ nature of a company that provides business users and retail customers with everything from cleaning products to stationary, office desks to computers. Makro store website
Ecommerce launch “We have always had an online presence from a research point of view, but recently we became an ecommerce site as well and it’s growing rapidly,” she said. The new platform has already proven w w w. m a k r o . c o . z a
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The fresh department boasts vegetables and a butchery
Doug Jones speaking to the store staff before the ribbon is cut and the store is officially opened to the public 6
popular with Makro’s customers and will continue building from a strong base, constantly adding new product lines over 2014, bolstered by a TV marketing campaign. Customers can choose from affordable delivery to their front doors, or to collect their order carefully pre-packed from their nearest store. Although Makro already had an online presence prior to this launch, the updated platform goes far beyond the original, adding many new lines, with the coming launch of a wide range of alcohol products a particular highlight. Louw said: “We’ve had a fabulous response
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in terms of traffic on the site. At this stage it’s only general merchandise available but in the next phase, towards the end of 2014, we will also be selling liquor online. “This will be one of the biggest liquor stores in the Walmart stable online and we will move to food and dried groceries in the foreseeable future.” The quality of the online presence will be familiar to Makro customers, as the company has strived to ensure a consistently excellent shopper experience across its multiple channels. Louw continued: “Whether our customers interact with us through a telesales centre, direct or
Happy shopper at one of the famous Makro store openings
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SUPPLIER P R O FI LE
Tiger Management Services
Tiger Brands Limited is pleased to be associated with Makro and thanks them for their continued support.
T: +2711 840 4000
E: tigercsd@tigerbrands.com
W: www.tigerbrands.com
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online, they will get exactly the same experience, and we’ve certainly done that on our website. “Our stores are massive but very modern, not a musty old wholesaler type experience. And we wanted to replicate that experience online with a lot of white space and openness, bold colours, big buttons: very bright and inviting. At the end of the day, the in-store experience is what makes Makro.”
‘Whether our customers interact with us through a telesales centre, direct or online, they will get exactly the same experience’
Customer focus Makro, opened its first outlet in 1971 in Johannesburg, becoming South Africa’s first cash and carry operation. Since then it has continued to add new stores and capabilities to stay ahead of the curve. The particular success of recent years can
– Melanie Louw
SUPPLIER PROFILE
TIGER BRANDS
Tiger Brands Limited, a Top 40 JSE Limited company whose footprint extends across the African continent and beyond, is one of the largest manufacturers and marketers of FMCG products in Southern Africa, and has been for several decades. The Group focus is on the core business of FMCG categories that spread synergy across the value chain which a broad basket of categories spans food, home and personal care as well as baby products. Website: www.tigerbrands.co.za
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be attributed significantly to Makro’s intimate understanding of customers’ needs. Part of the Massmart family (and also the Walmart group), Makro is a uniquely South African company that knows the nation’s consumers better than most. This understanding is further cultivated through its sought-after Makro card, which is available to business owners and retail customers. Louw said: “What makes us extremely unique is that you cannot purchase from Makro without a Makro card, so we have a very unique customer database which tells us what a customer bought and when. That gives us a very intimate understanding of what our customers want or need when they shop, and we communicate regularly with them.”
SUPPLIER PROFILE
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As well as giving its customers the right products, the company has aligned itself perfectly to give them these premium goods at the right price. Louw said: “We are very much positioned to cater to the needs of the higher-end customer who is looking for good quality and good value. We will not necessarily be selling the cheapest laptop in the market, but we will be offering the best bundle with a carry case. We have great prices on bundle deals and that is very much what we specialise in. “With those great value deals that we offer, we end up being more affordable, and part of that is knowing our customers so well. The products and stock levels we carry are specific to our target market; we don’t carry unnecessary costs that filter down to our customers.” The economy of scale comes into play in force to keep prices attractive, with national distribution centres serving stores daily with large trucks 100 percent filled with stock, maximising cost efficiencies and product availability. Competitive advantage Makro’s decentralised trading culture means shop-floor staff are empowered to deal directly with customers, their thorough training and development leaving their employer confident in their ability to understand the market. The faith Makro places in its employees has made it an attractive place to work, and
Key Personnel
Doug Jones, Managing Director
Melanie Louw, Marketing Director
‘We are very focused on supplier development, helping them, especially in the farming areas’ – Melanie Louw w w w. m a k r o . c o . z a
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Engage. Innovate. Collaborate.
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for Q1 2014, year-on-year staff compliment increased by almost seven percent. This overwhelmingly local talent is fostered through a graduate training programme and access to Massmart development schemes, including via its Leadership University. Responsible trading Makro’s excellent performance in South Africa makes it keen to repay the communities that have enabled it. The company donates one percent of its profits to the uplift of South African society through various schemes. Louw said: “We are very focused on supplier development, helping them, especially in the farming areas, and we are extremely involved
Makro’s excellent performance in South Africa makes it keen to repay the communities that have enabled it
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rewards points at Makro with UCount Rewards Here’s to 43 years of continued success Barloworld Logistics would like to congratulate Makro on its outstanding track record of consistently delivering comfort, convenience and affordability to South African businesses and homes for over 4 decades.
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With UCount Rewards you collect up to 10%* back in rewards points on groceries and up to 2.25%* back in rewards points on general merchandise purchases, when using a qualifying Standard Bank personal debit cheque and credit card. You can also redeem your rewards points at Makro using your UCount Rewards Card. UCount Rewards from Standard Bank. Just another way we’re moving you forward.
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Moving Forward
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with feeding schemes, and also schools. Those are the areas that we are really focusing on in terms of Corporate Social Responsibility.” To this end, vendor’s engagement in the supply chain area is strongly supported through Walmart, with key strategic vendors regularly engaged to identify opportunities to jointly improve service to customers and identify efficiencies for mutual benefit. The company also annually contributes more than R1.425 million to schools to assist with purchasing educational aids that directly benefit the learner. Through the Tomorrow Trust, it also assists orphans and vulnerable children in achieving invaluable academic qualifications. Its feeding schemes, in partnership with charities and the Department of Education, works
Top left: Derick Kalan, Dean Bauer, Doug Jones, Pieter Schoeman, Garry Hendry, Jonathan Koff. From bottom left: Melanie Louw, Gert Lourens, Julie Wilford
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S’nethemba Day Care Centre receiving the gift card from Doug Jones, Managing Director of Makro
Housekids Educare Centre received a R30,000 Makro Gift Card as part of the Amanzimtoti Store Opening
Housekids Educare Centre receiving the gift card from Doug
to feed disadvantaged children both at school and during the holidays, and assists schools in setting up vegetable gardens in order to understand how to feed themselves, giving ownership to the food produced and a sense of empowerment.
Jones
Future advances It has been a big year for Makro so far, and the second half of 2014 promises further development and success for this thriving South African company. As the online platform strengthens, Makro will not stand still on the store 18
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Company Information INDUSTRY
Distribution & wholesale HEADQUARTERS
Johannesburg FOUNDED
1971 EMPLOYEES
Approx. 8,000 REVENUE
Approx. R21bn
front either, and is actively seeking to renew its formats, further tailoring the experience to suit is customers’ preferences and better engage underserviced regions. An increased store footprint will also enable Makro’s focus on upgrading its delivery capabilities, with speed and reliability at the forefront of the company’s strategy going forward. Makro has thrived on giving it customers what they want, when they want, in the way that they want. Both its ongoing strategy and future plans are a clear continuation of this process.
PRODUCTS/ SERVICES
Food, liquor, general merchandise
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MAKRO SA Address 16 Peltier Drive, Sunninghill, Sandton, South Africa Tel. +27 11 797 0000 / Fax. +27 11 803 5833 info@makro.co.za www.makro.co.za