K I T K AT CASH & CARRY
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KIT KAT CASH & CARRY
Kit Kat Aims For
Nationwide Coverage PRODUCTION: David Napier
Delivering fist-class customer service while ensuring a smooth operation and keeping prices low is not easy for today’s big retailers. But South Africa’s Kit Kat Group has mastered this model and is now aiming for country-wide expansion as the family business looks to grow while always delivering on its promise of customer first. www.enterprise-africa.net / 3
INDUSTRY FOCUS: RETAIL
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The story of leading South African cash and carry operation, Kit Kat Group, is a true tale of drive, determination and innovation. This retail expert has been delighting customers since its formation in 1953. Although the Kit Kat Group today is very different from its roots in the 50s, one thing remains true – the customer is at the heart of everything. Founded in Pretoria’s Asiatic Bazaar by Osman Mohammed, brother-in-law Osman Gani and Gani’s daughter, the business was started as a small family run café. Unfortunately, the challenges came thick and fast starting with a fire that ruined the company’s premises in 1959. After attempting to rebuild, the café was moved to Pretoria’s 11th Street because the city relocated a bus route that was delivering much of the café’s trade. In 1973, Gani’s sons Abdul Kader and Abdul Razzak joined the company and brought fresh new ideas to the operation. Soon, the business was
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// THE BRAND KIT KAT IS RECOGNISED AS ONE OF THE LEADING BRANDS IN THE FMCG INDUSTRY TODAY // reformed as a self-serve supermarket and trade flourished. However, the operating space at the time was only 110 m2 and so the young entrepreneurs realised the time for expansion was upon them. 1983 saw Kit Kat move to the Asiatic Complex and convert to a wholesale-type business but the rapid growth of the organisation again caught up with the company. In 1989, the Kit Kat Hyperstore was opened south of Pretoria. The next generation of the family business entered the business and, in 1992, the 1500 m2 Kit Kat Cash and Carry opened its doors. What followed was a period of extraordinary growth as the number of
people coming through the doors and the value of products sold increased year-on-year. The country’s transition into democracy in 1994 greatly boosted the company, and in 1999 the new Kit Kat Cash and Carry was opened in Pretoria West. The 20,000 m2 is home to a large range of goods including groceries, electronics and cosmetics. Value for money and customer service have always remained at the core of Kit Kat and, in an effort to provide a one stop shop experience, the flagship store is always expanding, now offering fast food, clothing, interior decorating and many more services. “The brand Kit Kat is recognised as one of the leading brands in the FMCG industry today, and it symbolises the trust of our customers,” says Kit Kat Group Chairman, Ahmed Gani. “We feel highly contented that it is overwhelmingly accepted and recognised by our valued customers as a trustworthy brand. The trust of our customers in our brand constantly
motivates us to offer better services.” The company’s belief in customer service is one shared by many of the world’s most respected business personalities. “A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so,” said Mahatma Gandhi. “Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers,” said American business magnate, Ross Perot. Ahmed Gani very much agrees. “Customers see the value of dealing
INDUSTRY FOCUS: RETAIL
with hands-on type operators,” he told Entrepreneur Magazine. His office is strategically positioned with a glass front, looking over the entrance to the premises. “I want to see that nobody looks unhappy as they walk out,” he said. “I want them to see me so that at least our eyes can meet and we can greet each other. If you are not satisfied you can meet the MD of the company in a minute and we can immediately try to rectify things so that you leave here as a happy client.” The ambitions of the Kit Kat Group, and especially its management, are impressive. Not content with sitting still, the business is always looking for the next growth opportunity. Following the success of the Kit Kat brand and its growth throughout Pretoria, the management turned their attention to a new strategy and opened Build Mart. Build Mart is a resource for those operating in the hardware and building materials
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industry. Management saw the opportunity to bring what was already a strong presence in the retail market to the buildings and DIY industry, while always keeping the company’s low pricing model at its heart. Build More For Less is the slogan
by which Build Mart operates and today, the company deals in not only construction materials but also plumbing, lighting, sanitary ware, imported furniture and tiles. Realising the opportunity for further expansion, the management
KITKAT CASH & CARRY
// WE ONLY HAVE A FEW EXPRESS STORES JUST NOW BUT WE AIM TO GROW THAT THAT UP TO 100 STORES IN THE NEXT TWO TO THREE YEARS // made its first move outside of South Africa recently when its opened Value Market, a cash and carry outlet, in Dubai. Close the city’s main airport, Value Market is a distributor of a wide range of products, very similar to operations in Pretoria, and is becoming known in the Middle East for its competitive pricing. Locally, Value Market offers online shopping and brings an innovative price checker to ensure customers are getting the best deal. In South Africa, Kit Kat Cash and Carry recently launched its new app, in an attempt to make mobile shopping a seamless experience. To date, the app has been widely downloaded and well-received. The small family business that started
out more than 60 years ago is now leading the way when it comes to effective retailing in South Africa. Next on the agenda for Kit Kat? Nationwide coverage. “We plan on becoming a national player in the FMCG industry of South Africa – our philosophy is very simple: go big or go home,” says Gani. This will be achieved through the roll out of a franchise-style operation and the Kit Kat Express model. Kit Kat Express stores are designed to be smaller than the flagship premises, 200 m2 in size, but to act as suppliers into certain regions, buying from the company’s main store. According to Gani, it’s about creating customers for themselves. “We only have a few Express stores just now but we aim to grow that that up to 100 stores in the
next two to three years.” Franchising has grown to become an extremely important part of the country’s economy, contributing a big portion of GDP and creating thousands of jobs. If there is one business that can make a success of this type of invention and change in strategy, it’s the Kit Kat Group. The family behind this big-name retailer are experts in the industry and have been through all the ups and downs, thriving at each turn. As pressure mounts on the country’s retailers to deliver products at cheaper prices, while always investing in innovation and new technology, Kit Kat is ahead of the curve and utilises its experience to ensure the most important goal is achieved: It’s customers leave happy, and return.
WWW.KITKATGROUP.COM
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April 2018
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