SWOT Report Publication date: November 2018 Next publication: September 2019 SWOT Report

Masscash Wholesale Group Strengths Growth Positive Wholesale turnover (excluding commodities) Management Maintenance of a degree of buying and decision-making capability at store level allows for independent decision making Strengthening of the supply chain management and ops team for growth Operations Centralisation of customer distribution fleet management Shield call centre and online capabilities Enhanced synergies driven through the integration of Shield sales force capabilities into the broader division Jumbo strength in personal care and general merchandise Shopper Marketing Greater consistency in execution of regional promotions Shield tradeshows continue to contribute significantly to both sales growth and customer loyalty Efficient call centres (at national and store level) Strong focus on the implementation of safe shopping environments and standardised and regulated merchandising Group Weaknesses Weak divisional turnover growth of +0.3% Comparable sales for HY2018 declined -2.0% Margin pressure from high commodity participation Trading profit loss of -R4.1m   Masscash remains in transition phase – lack of clarity regarding divisional strategy Supplier confusion regarding servicing of the total Masscash account Difficulties for buyers in terms of dealing effectively with both Wholesale and Retail stock, and store vs regional preferences Reversal of decision to rebrand all Wholesale stores as ‘Jumbo’ – cost, time and reputational implications ‘Brain drain’ of CBW owners Reduced personnel performance resulting from formalisation of the business design

Masscash Wholesale Supplier Opportunities Growth Capitalise on fewer touch points arising from merger of Wholesale and Retail management teams Optimise your customer facing structures vis-à-vis Masscash consolidation of Wholesale and Retail buying teams Capitalise on volume drives in Saverite and banner outlets Explore trader engagement opportunities through Masscash initiatives, Masscash trade shows and banner and franchise meetings   Operations Ensure you are on board with Masscash supplier expectations as the newly merged buying structure continues its implementation Optimise order fill rates and delivery cycles Leverage opportunities presented by the extension of Shield call centre and sales team capabilities into the Wholesale space Take advantage of re-focus on health & beauty in Masscash Supplier Threats Lack of clarity around servicing of the total Masscash account Inability to adapt to newly merged Retail and Wholesale management and buying structures Little to no current sales focus by supplier on the smaller stores – number of personnel mandated for decision-making has declined Insufficient after-sales service at store level, resulting in poor merchandising and lacklustre displays Out of stocks in KVIs Poor Retail delivery, particularly with respect to on-shelf pricing Out of stocks/lack of prioritisation for Wholesale outlets Product labelling for African market – labelling and shelf life Balanced promotional spend – national vs regional

Masscash Wholesale Supplier Opportunities Marketing Develop robust and relevant POS materials fit for the wholesale environment Take advantage of the Masscash drive to develop tailor-made, mutually-beneficial promotional campaigns across franchise Partner with Masscash on stokvel initiatives New product development: What channel differentiation opportunity are you bringing to Masscash? Sustainability Partner with Masscash on intelligent collaborative CSI campaigns

Maryla Masojada | Lead Analyst Kate Shirley | New Channels Analyst