INDUSTRY FOCUS: MANUFACTURING
//
The ‘Big 5 food retailers’ in South Africa account for more than 60% of all food retail sales. Shoprite, Pick n Pay, Spar, Woolworths and Cambridge Food have a combined store network of more than 5000 stores and attract millions of visitors every year. Whether you’re in the far-flung southern corner at Cape Agulhas or way up north close to the border in Musina, you’ll be able to find one of these retailers. At the heart of all of their food offerings is being able to deliver fresh food, quickly, at low cost. But how can you keep fresh food chilled, frozen food cold, hot snacks warm, and all displayed in an attractive and convenient manner – especially across a major network? It’s not easy, but Concord Refrigeration – established in South Africa in 1969 – has the answer. A manufacturer of refrigeration cabinets specifically designed to meet
4 / www.enterprise-africa.net
the needs of the retailer, this business is geared for efficiency and quality. But it hasn’t been easy for Concord to position itself among the top businesses in the industry. Challenging economic conditions and a depressed and everchanging retail environment have forced Concord to adapt in order to continue growing. Managing Director Wernhard Barnardo talks to Enterprise Africa about how Concord Refrigeration – a division of Southey Holdings – is changing to take on a modern challenge. “No one goes through a recession and a retail industry being under such pressure without having to make changes,” he says. “A lot of the changes that have been seen at Concord over the past two years, came as a result of the downturn in the retail development space in South Africa. Even at the beginning of last year we went through two quarters of negative growth and
into recession. We are directly impacted by that because as soon as the retailer slows down with their rollout, we don’t have work to do. From 2016/17, there was a turndown into 2017/18 in terms of overall volume. We saw it coming so we had to scale down to ensure our cost structure made sense in a smaller market. We managed to do that successfully and we are looking very good at the moment.” The company manufactures the entire storage and display cabinet, mainly for national supermarket chains. All of the cutting, welding and bending happens inhouse at Concord’s facility, north of Durban. The company also handles installation on site and assembles everything by hand to keep control over quality. Working closely with the retailer’s chosen refrigeration contractor, Concord has become a vital component in the delivery of a successful shopping experience.
