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

2. 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

3. 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

4. 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

5. Maryla Masojada | Lead Analyst Kate Shirley | New Channels Analyst