Review of operations

SUPPORT SERVICES
OVERVIEW AND PERFORMANCE MATRIX

Retail properties	Manufacturing properties	Environmental sustainability
This portfolio affords strategic advantage to the retail brand operations by ensuring stores are well located, well presented and maintained, and contribute to an inspirational shopping experience. The portfolio is continuously evaluated and enhanced to ensure optimal returns.	The Group′s manufacturing operations comprise well-maintained state-of-the-art factories that are supplied with high-quality raw materials sourced from productive quarries in close proximity to the plants.	The Group′s sustainability agenda is promoted through the use of cost-effective, energy efficient practices in the construction of new buildings and the renovation of older buildings. Optimal use of natural light, solar technology, new-generation lighting, water-saving taps, rain water harvesting, boreholes and environmentally sensitive building materials is prioritised.

Target market

Key statistics	2024	2023
Total number of stores	202*	209*
– Italtile Retail	15*	14*
– CTM	95*	97*
– TopT	92*	92*
– U-Light	–*	6*
– ELK^#	9^#	6^#
Retail property capex incurred
(new and refurbishments)	R115 million	R338 million
Portfolio changes
– Properties acquired	0	7
– Properties sold	3	2
New stores opened
– Italtile Retail	1	0
– CTM	1	2
– TopT	2	5
– ELK^#	3^#	3^#
Stores closed
– TopT	2	2
– CTM	3	0
– U-Light	6	1

* Excludes webstores.

^# Lease in Group-owned property.

2023/24 priorities	Scorecard
Increase returns by optimising store size and input costs; relocating non-performing stores; and ensuring keen negotiations on rental renewals.
Sell non-profitable/non-viable sites.
Drive green initiatives to ensure environmental sustainability and reduced dependency on municipal services through our programmes to implement solar and battery back-up, rain water harvesting and boreholes.
Continue to source and develop new sites.	Ongoing
Continue to support the Group′s expansion programme by incorporating ELK offerings into our existing properties.

2023/24 major achievements

2024/25 priorities and prospects

Three TopT stores were moved to better-located sites, reflected by the improved sales reported subsequent to them moving.
Good progress was made on the goal to sell non-profitable/non-viable sites, with the sale of three sites. There is further progress to be achieved.
Pilot hybrid-solar system projects were installed at CTM Northriding, CTM Brits, TopT Rustenburg and TopT Mabopane. Key metrics will be monitored and evaluated over the next financial year.

Improve returns on the property portfolio in Southern Africa relative to trading investments.
Sell non-profitable/non-viable sites.
Review opportunities to convert leased sites to owned properties for high-performing TopT stores in proven markets (the target is three to five stores).
In the context of materially higher land and construction costs, improve returns through optimising store size and building costs.
Increase hybrid-solar system back-ups in CTM Gauteng stores.