B LU C H I P R E TA I L SOLUTIONS
BLUCHIP RETAIL SOLUTIONS
End-to-End Solutions Drives
BluChip Expansion PRODUCTION: David Napier
BluChip Retail Solutions is expanding its reach across Africa and growing into new markets in Europe and the Middle East. This South African success story started life 20 years ago but only kicked into top gear following a change of ownership five years ago. CEO Brett Stagman tells Enterprise Africa more about the BluChip journey
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INDUSTRY FOCUS: RETAIL
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With economic uncertainty fuelling negative thought when it comes to commercial activity in South Africa, it’s worth stepping back and looking at the bigger picture. South Africa grew by 2.5% in the second quarter exiting technical recession, the global economy is reasonably buoyant with trade volumes expected to increase by 4.2% in 2017, Africa remains the frontier for development with a number of emerging economies posting strong growth figures, international businesses still look to SA and Africa for expansion opportunities, and South African organisations continue to display financial strength. Positivity is further evidenced in the retail sector where, according to Euromonitor International, ‘many consumers remain aspirational, with demand remaining strong for essential FMCG, especially products which are in line with global trends. As a result of consistent demand from
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consumers, retail value growth rates remained positive overall in 2016. Consequently, retailers continued to develop various strategies such as the expansion of their product ranges, the use of frequent promotions and price reductions to attract consumers and maximise their margins’. Money continues to flow in South Africa - perhaps not at the rates seen in previous years, but there is certainly business around for those that are willing to go out and find it. And with consumers still looking to retailers, across different industries, to fulfil their needs, retailers are regularly looking at ways they can differentiate themselves from competitors to claim markets share. Whether it’s moving all operations online, opening more stores, consolidating product ranges or expanding to spread risk, the vehicle of the retailer - the shopfront – remains a key component in consumer interaction.
When Ernst & Young reviewed the SA retail sector in 2016, research suggested that retailers are increasingly focussing on customer satisfaction and technology. Findings also showed that ‘retailers with more diversified geographic earnings will be better positioned to withstand the pressures’. This is where partnering with an experienced, proven and reliable partner can help take business to the next level. BluChip Retail Solutions has been providing innovative industrial shop fitting and brand manufacturing services to big names all over SA and Africa for 20 years. When the company changed ownership back in 2012, its influence really began to grow and its list of services expanded significantly. Today, this growing company is an ‘idea lab’; a leader in future-technology, specialising in digital displays and content management solutions. It’s ability to provide and turn-key solution is what separates from the crowd. “We were established in 1997 but
BLUCHIP RETAIL SOLUTIONS
//OUR ABILITY TO OFFER A COMPLETE SOLUTION IS WHAT SEPARATES US FROM THE COMPETITION – AND YES, IT IS A VERY COMPETITIVE MARKET// the business only became what it is today in 2012 so although it is officially our 20-year anniversary, we are not celebrating in a big way,” says CEO, Brett Stagman. “When the business changed hands in 2012, there was a lot of work to do to bring it to a strong position. Since 2012, we have grown consistently at 25-30% per annum and we intend on maintaining this, or growing it, in the next three years.” END-TO-END Delivering services from interior design through to steelwork, signage, VR and biometrics, BluChip Retail
Solutions is well-equipped to bring clients retail offerings to life. Whether it’s a greenfield development or an expansion of existing infrastructure, BluChip is experienced in delivering projects from start to finish. “Our ability to offer a complete solution is what separates us from the competition – and yes, it is a very competitive market,” admits Stagman. “It may sound niche, but there’s a number of established players in the industry. We can come in with expertise in everything from design and signage, through to construction and steel work and there’s not many
in the industry who can bring the number of different services that we can. That’s testament to our team, and demonstrates the level of knowledge and experience we have.” BluChip’s portfolio includes work for powerhouse brands such as Spar, Alexander Forbes, Kurt Geiger, Superga, Guess, Timberland, Huawei, HP, Edgars, PwC, Pizza Hut, McDonalds, Pick n Pay, Boardmans, ABSA, Richmark, Forever 21 and many more. BluChip organises its vast array of services into 15 categories: Design Services, Digital Services, Shop Fitting Services, Installation and Civil Services, Project Management Services, Retail Maintenance Services, Steelwork Services, Glass and Aluminium Services, Signage Services, Retail Property Advisory Services, VR Services, Biometric Services, UHF
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INDUSTRY FOCUS: RETAIL
Services, NFC Services, and Logistics Services. “We are able to transform your dream into a reality with our extensive range of propositions,” the company states. “I play a strategic role in all the divisions, but each one of divisions has a head of department which manages its division on a stand-alone basis,” says Stagman. In the ever-changing world of retail, many leaders are clear in their view that bricks and mortar stores are not finished and, while many are moving to solely online models, those that can adapt and tailor their physical offerings are those that are set to thrive. Examples include McDonalds which is implementing touch screen self-service ordering terminals in many outlets, Pick n Pay which has introduced self-service counters, major grocery retailers are installing electronic vehicle charging stations and license plate recognition parking systems, Samsung has rolled out major digital and VR displays in its stores, and Woolworths has expressed interest in the growing movement surrounding drone delivery services.
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South African Council of Shopping Centres (SACSC) CEO, Amanda Stops said recently: “It is not a matter of technology or online stores replacing the physical counterparts but rather how the two can complement each other in a harmonious way. The retailers and shopping centres of the future will be those who get the balance just right and who maximise technology and most importantly understanding the ever-changing needs of the customer.” Pop up shops opened in New York recently demonstrated what could be widespread innovation of the future with social media integrated touchscreen mirrors in dressing rooms that allow for the request of alternative sizes or colours, charging stations for cell phones, and the ability to complete purchases without standing in lines or exchanging any cash. Despite offering an industryleading range of services, BluChip and Stagman are keen to continue growing the business, bringing internationally recognised best services to the markets in which it operates.
“For us to achieve significant growth, we are actively going to be targeting new industry sectors. We’re now well-known and our clients are some of the most recognised in the country so our work comes with a strong reputation and that’s something we’d like to move into new industry sectors with new partners. We see major opportunities in the telecoms industry, not just here in South Africa but internationally,” says Stagman. Growth in this sector has long been a target for BluChip and it has realised significant progress, securing significant deals with big names mobile providers. “Our partnership with Vodacom has been a fantastic achievement,” says Stagman. “As they’ve grown in South Africa and Africa, we’ve been able to grow with them. Often, we have delivered a full suite of services. We are hoping that in the future, we will be able to grow in Europe with Vodafone. We’ve already realised involvement in the UK and our target is to grow this exposure in Europe. We’re also very keen and excited
BLUCHIP RETAIL SOLUTIONS
about prospects in the Middle East, particularly places like Dubai. We’re also extremely excited about the store roll out that we are involved in with Cell C, that will see many new stores opened and existing outlets refurbished and modernised all over the country.” ALWAYS GROWING Geographic growth is also high on the agenda for BluChip and with a number of brands that the company has serviced successfully in the past expanding on the continent, there are big opportunities for development outside of South Africa. “We currently manufacture retail furniture for a retailer in Dubai from the Landmark Group, on the Africa front we manufacture for Vodfone in the DRC and Cameroon,” explains Stagman. “Africa is certainly a new frontier for us,” he adds. “We’re yet to attack new frontiers such as Nigeria or Ghana but we do see opportunities and it will be about finding the right opening. We do believe there remains a massive amount of work available in South Africa. “Currently, we’re busy rolling out several stores in South Africa’s surrounding countries for Hifi Corporation and the Edcon group of brands.” In the future, Stagman will look for M&A opportunities to further expand the company’s service portfolio and deliver any service that clients could demand. Minimising any outsourcing that might be needed is the vision, and the company is currently busy finalising its most recent acquisition which will be announced soon. “Acquisition is our preferred method of growing the business,” says the CEO. “We like to bring in skills that will add to what we can offer and constantly grow our service portfolio. It’s also about cost management; if we can acquire a business that can then provide us
with services across the business then it makes a lot of sense as it will save us money.” Stagman, who joined BluChip three years ago, has experience operating in Africa and he has worked through challenging economic periods. “Prior to this appointment I was the CFO of a subsidiary of Blue Label Telecoms operating in the cellular industry in Mozambique, the DRC and Nigeria. I was living in Nigeria from 2009 to 2012. “I don’t think the current economic situation is at all about politics - it’s cyclical. You must prepare for peaks and troughs in the economy and you can see that the companies that have managed to prepare correctly are the ones that are not held back when the tough times hit,” he says. So despite the economic
uncertainty and the slow confidence around South Africa’s commercial sector right now, there are businesses that remain committed to achieving success, and BluChip Retail Solutions is the perfect example – innovative, exciting, modern, well-run, knowledgeable and sitting on a robust platform for strong future growth.
BLUCHIP SOLUTIONS 0861 888 335 sales@bluchip.co.za www.bluchip.co.za
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AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
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Issue No.64
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NECSA:
Environmental Approval Confirms Nuclear Progress
ALSO IN THIS ISSUE:
SKA / Transnet / Metso / AVBOB
A S F E AT U R E D I N
ENTERPRISE AFRICA
OCTOBER 2017