Review of operations OVERVIEW AND PERFORMANCE MATRIX
During the review period, our overriding focus was on improving the customer experience and driving sales growth. We continued to invest in our people, technology, store layouts, merchandising and range. Higher sales were reported across the brands, and the improved satisfaction scores achieved across our various measures are pleasing rewards for our efforts.
RETAIL BRANDS
Nature of business
Leading fashion retailer of exclusive ranges of tiles, bathware and related products.
Strategic positioning
Target market
Live beautifully
LSM 8 – 10.
Discerning consumers in the upper-middle and premium-end segment and Commercial Projects market.
Footprint
1
store opened (Clearwater) (2018: 1)
3
stores revamped (Northgate, The Glen and the webstore) (2018: 4)
* Includes webstores.
Key performance indicators
Trends 2019
Trends 2018
Sales
Average basket growth
Average selling price
Margins
Net profit
Stock turn
Average store inventory
Key differentiators
Trendsetter and leading buyer of exclusive high-quality fashionable international and local products.
Widely recognised as the industry front-runner in environmentally sensitive products.
Well-established specialist expertise and nationwide network.
2018/2019 priorities
Scorecard
Develop the talent pool at all levels across the operation.
Interrogate our current marketing and media strategy and adapt to evolving market conditions and customer base profile.
Continue to build scale in the Commercial Projects division.
2018/2019 major achievements
Updated the webstore and digital initiatives, including the successful deployment
and implementation of a room-build visualiser, which enables customers in the
Commercial Projects and Retail business the opportunity to design and mock-up a
room during the selection stages.
Achieved improved overall scores on our customer satisfaction reviews.
Extended the range of our large-format tile assortment.
Successful collaboration with the University of Pretoria to integrate top marketing
students into our business on both a temporary and permanent employment basis.
Achieved significant progress in expanding and improving the local porcelain tile offering.
Made pleasing progress in securing working relationships with identified key accounts for our Commercial Projects division.
2019/20 priorities
2019/20 prospects
Explore, determine and implement strategic logistics
improvements.
Expand into Africa with the opening of a new store in Gaborone,
Botswana.
Complete the transition of the webstore to an upgraded platform
with specific focus on mobile accessibility.
Develop the omni-channel experience underpinned by the new
webstore.
Intensify employee engagement to drive the continuous
development of personnel.
Enhance and entrench the market profile and presence of the
Commercial Projects division to grow its footprint.
Optimise the business model to ensure market share and resources
are appropriately apportioned between the major components:
retail, webstore and the Commercial Projects divisions.
Nature of business
Leading specialist retailer of tiles, laminate boards, taps, sanitaryware, shower enclosures, bathroom furniture and accessories.
Strategic positioning
Target market
Big savings. More style.
LSM 5 – 8.
Middle income DIY customers and small builders.
Footprint
92*
stores (2018: 87*)
49*
corporate (2018: 44*)
43
franchised (2018: 43*)
4
stores opened in Giyani, Limpopo, Eastgate and Clearwater in Gauteng and Mwanza, Tanzania
9
stores revamped and two relocated
0
stores closed (2018: 1)
* Includes webstores.
Key performance indicators
Trends 2019
Trends 2018
Sales
Average basket growth
Average selling price
Margins
Net profit
Stock turn
Average store inventory
Key differentiators
Local and international buying power.
Year-round value offering with strong fashion component.
Integrated supply chain ensuring consistent availability of stock.
2018/2019 priorities
Scorecard
Focus on product (cost leadership, differentiation and
trendsetting fashion).
Continue to drive customer-centricity (launch our new
marketing strategy).
Continue to prioritise our human capital structure and skills
development.
2018/2019 major achievements
Key leadership changes implemented, including the identifi cation of an equity
partner.
Opened four new stores and successfully relocated two.
Launched a new targeted marketing and advertising strategy to entrench the
brand’s relevance across its various customer profiles.
Improved the range.
Improved our use of analytics and enhanced our internal reporting standards.
Our focus on cost leadership delivered good results.
2019/20 priorities
2019/20 prospects
Develop the people pipeline to grow capability.
Open three new stores.
Entrench our corporate values and culture to energise our staff
and drive sales growth.
Gain market share, with particular focus on the tile category.
Entrench CTM as the fashion leader in our market.
Continue to drive our customer-centric focus to grow sales.
Nature of business
Retailer of home-finishing products including tiles, paint, ceiling décor, taps, sanitaryware, hardware and accessories.
Strategic positioning
Target market
Every price a LOW price
LSM 4 – 7 (lower).
Entry-level value offering strategically situated in underserviced rural areas and outlying markets in close proximity to urban townships.
Footprint
83*
stores (2018: 77)
16*
corporate (2018: 22)
43
franchised (2018: 55)
10*
stores opened (2018: 13)
4*
corporate (2018: 4)
6
franchised (2018: 9)
New stores
Gauteng: Southgate, Bruma and Dobsonville KwaZulu-Natal: Springfield and Ulundi Mpumalanga: KwaMhlanga Western Cape: Vredenburg Eastern Cape: Uitenhage and Mount Frere
4
stores closed due to non-performance or for security reasons. (2018: 0)
Affordability and availability of stock and accessibility to market.
Strong community relationships and local marketing.
2018/2019 priorities
Scorecard
Develop talent and build leadership to enhance succession
planning in the business.
Launch a new marketing strategy designed to increase and
improve market penetration.
Capitalise on enhancements made in the buying team to
improve the offering and coordinate supply.
2018/2019 major achievements
Launched the TopT Training Centre to improve the practical skills and theoretical knowledge of our personnel.
Launched the TopT webstore, enhancing the convenience offering for customers.
The significant increase in unique visitors per month is illustrative of the brand’s
growing online presence. While sales are in their infancy, the trend is positive.
Introduced our TopT Gig Rig – a mobile offering which travels around
predominantly rural areas, raising awareness of the brand in new or previously
underserviced markets.
Expanded the lighting range nationally.
2019/20 priorities
2019/20 prospects
Implement a Franchise Partner Development Programme with
Henley Business School to address succession planning in the
business.
Open seven to 10 stores.
Implement and monitor the Business-critical Framework to ensure
consistent stockholding and range across all stores to improve
the complete solution offering to every customer.
Increase our national television and radio exposure in line with
our growing footprint.
Increase participation in regional community projects to raise
brand awareness.
Continue to build on good customer relations through increased
management store visits, customer contact and surveys.
Activate market disruptor deals and promotional campaigns.
Explore, and if viable, implement a credit facility offering with a
major bank to enhance value to our customers.