J&E Cash 'n Carry

COMPANY PROFILE

2015

J&E Cash ‘n Carry

www.je.co.za | +27 (0)12 327 5000

company profile

Celebrating 70 years Editorial: Alex Montgomery

Proudly celebrating its 70-year anniversary this year, J&E Cash ‘n Carry is one of South Africa’s longest running family retail businesses and one of the biggest wholesalers in the country. The last genuine wholesaler to solely sell to licensed traders, J&E has deep roots in the industry locally and this month we are lucky enough to speak to directors Solly, Mahomed, Adam and Shabir Joosub to find out more about the proud legacy of their family’s company…

Having been established in 1945, J&E Cash ‘n Carry is one of the oldest existing wholesalers in South Africa, selling goods across all areas of: groceries, cosmetics, confectionary, personal care, household, health, beauty, baby, hardware and electric & stationary for a host of well-recognised brand names. Solely serving trade customers, J&E strive to provide the best possible service and the most competitive prices out of their 6,300 m² store in WF Nkomo Street, Pretoria which is accompanied by the company’s 3,000 m² warehouse in Hermanstad. Essentially, J&E acts as a warehouse for traders – holding large amounts of stock so that customers can come in and stock up on what they need for

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their business. Manager Shabir Joosub, explains the core operations of the business further: “We specialize in Cosmetics, Health & Beauty, Groceries, Houseware, Hardware and Stationery. We are by far the largest cosmetics, health and beauty wholesaler in Pretoria, and amongst the biggest in South Africa. We supply wholesalers, retailers, pharmacies, general dealers, distributors, independent supermarkets and health & beauty outlets and work with a multitude of National and International suppliers. “Grocery items are all locally sourced and we distribute via our transportation partners to customers across South Africa, especially within Gauteng, Limpopo, North West and Mpumalanga. Goods are also exported to Africa, Europe, Asia and the Middle East – a segment that we look to expand

J&E Cash ‘n Carry

significantly in the coming years. “We hold accounts with multiple banks, making it easy for customers to make payments depending on the bank that suits them,” says Shabir.

A RICH HISTORY The most defining factor of J&E is its abundant history. Celebrating 70 years in operation this year, J&E’s beginnings in South Africa go back to the 19th century, when the first Joosub entrepreneur set foot on South Africa’s shores. “In 1876 Mohamed Hajee Joosub, at the age of 14, undertook a harrowing journey by ship from India to South Africa. He arrived in Cape Town and proceeded to Trek with Dutch and African travellers towards Pretoria. Upon arriving at the site of Market Square, he began trading as a hawker with only one

pound in his pocket,” says Solly. “He carried on this trade for many years until he was able to open his first business, ironically on Church Street where he began all those years ago. This is the very site where the South African Reserve Bank now stands. He specialised in textiles, this business aptly named M.H. Joosub & Sons. Amongst his many customers were President Paul Kruger and General Louis Botha.” Fast forward to 1945 and Mohamed Joosub had three sons, one of which was Hajee Joosub Hajee Mohamed. “Hajee Joosub ran his father’s business very successfully, and at the same time, in 1945, started J&E Wholesalers in Prinsloo Street, Pretoria. At that time, Hajee Joosub controlled three businesses, namely M.H. Joosub & Sons, J&E Wholesalers (Pty)

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company profile

Ltd and J&B Trading in Johannesburg. Following Hajee Joosub’s passing in 1963, Solly Joosub, the current Managing Director of J&E Wholesalers, with his brother Sikander, inherited the company. Following Sikander Joosub’s migration to Durban a few years later, his brother Solly took full control of J&E which at this time had around 250 m² of trading space and operated as a conventional wholesaler. “Sales reps at this time would go into the townships, take orders and then arrange delivery. Legislation back then did not permit wholesalers to drive past a radius of 30km to ensure that the railway received sufficient business,” explains Solly. Under the directorship of Solly Joosub, 1972 saw

the acquisition of a much larger entity by the name of S.Cohen. A strategic takeover for J&E, S.Cohen also specialised in the FMCG market and became the new premises of J&E Wholesalers, at 70-80 Du Toit Street, Pretoria. “In 1973, I, along with three other founders, started a company by the name of Shield Buying and Marketing. This was a great success story as many disadvantaged independent wholesalers (including J&E) could purchase goods through this buying group and could compete favourably against the giants of the time,” says Solly. Due to the instability in the country in the mid 1980’s, Solly Joosub made the decision to transform his business from what was then a conventional

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J&E Cash ‘n Carry business of carrying accounts and delivering stock, to a cash and carry. Following this transformation in 1987 the Shield Buying Group was listed on the Johannesburg Stock Exchange, making Solly one of the first non-white executives to own a company on the JSE. J&E moved to its current premises in 1992 and in 1993 Shield was purchased by the Massmart Group for R61.5 million. J&E today is still headed up by Solly Joosub, but the day-to day running falls to his three sons, Mahomed, Adam and Shabir, the 4th generation of the Joosub family to take over from those who came before.

RECENT HAPPENINGS With such a long legacy of success and growth to build upon, the continuation of J&E’s dominance in the market is paramount to the most recent generation to take the helm and the three brothers recognise the need to continually adapt the business and pursue new opportunities. “In 2011, we were appointed as Key Distributors for Unilever SA within the Pretoria/Tshwane region, which was run under the company name of Mass Distributors. A 3,000sqm warehouse was purchased in Hermanstad specifically for this venture. Since then, other suppliers have signed on with us, creating powerful partnerships that have reaped wonderful rewards, as well as increasing the number of customers that are serviced,” says Adam of some of the company’s recent developments. “In 2012, we re-joined the Shield Group as a voluntary member after many years of absence. This renewed partnership has provided excellent returns, especially in the grocery sector, where we have benefitted from the supplier relationships enjoyed by Walmart/Massmart. “This year, we have invested in upgrading our shelving and racking to cater for more goods to be stored, as well as effective stock rotation and damage control. We have also invested in more forklift and reach truck units – these were required due to the increased amount of goods that have been flowing in and out of the business.” With an important milestone for J&E to be celebrated this year – its 70-year anniversary - it is one of the few times when its management can really stop and appreciate their own success. But, in line with the company’s attitude of always putting its customers first, this seminal celebration is to be shared in equal part with those customers that are

“Without

trustworthy and hardworking members, the company would never have reached the heights that it has”

Amka Products wishes J&E Cash ‘n Carry all the best on their 70th celebrations

Consumer Tel: +27 (0) 860002652 E-mail: info@amka.co.za

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company profile

the very reason for the company still being around to mark this historic year. “To celebrate our 70th anniversary, we will be doing what we know best – providing the lowest prices to our customers, thereby allowing them to celebrate with us. We will also be handing out free goodies to each customer and embarking on massive promotional campaigns for the whole month,” says Mahomed.

A SUPERIOR SERVICE J&E has created a niche for itself in the market by solely supplying to trade customers and because of this can provide its customers with the assurance that it will never be directly competing with their business by selling to their own consumer-customers. Currently, the company undertakes a dual strategy of cash and carry, as well as distribution and exports in conjunction with trading partners to ensure it can cater to the complex needs of its customers. It is these partnerships and supplier relationships that are another key contributor to the company’s longevity in the retail sector and Shabir stresses J&E’s commitment to promoting long-term, successful supplier relationships. “We see our suppliers as

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“This was a great success story as many disadvantaged independent wholesalers (including J&E) could purchase goods through this buying group”

J&E Cash ‘n Carry partners in our business.” One of the most important factors for any customer-focused business is having exemplary service levels at all times. As Shabir states – “Our hallmark has always been based on superior service levels. Customer complaints are dealt with on-thespot and measures are put in place to rectify any shortfalls. Complaints come straight to the directors, and can therefore be dealt with immediately. There is always at least one director on the floor, ready to deal with any issue. “A business can only be as strong as the combined strength of its customers,” says Shabir. “J&E, from its inception, has always been focused on its customers. Other cash and carry businesses have turned into hybrid stores, where both traders and consumers are served at the same price. Since we only supply to the trade, our customers have always been very loyal to us. This is because we do not sell directly to their consumer-customers. Our motto has always been that “We will not compete against our own customers.” We therefore also ensure that our prices are competitive enough for our customers to turn a good profit when re-selling. Responsible for upholding all aspects of customer

service are J&E’s staff members, and Shabir does not take lightly their contribution to the business. “Our staff are our pride and the true face of the business. Without trustworthy and hardworking members, the company would never have reached the heights that it has. Some staff members have been at J&E for over 40 years

THE J&E WAY J&E is run by a family with strong religious principles, principles which have coloured all aspects of their business dealings and contributed to the unity of the family-run company. Shabir states that his family’s belief has always been that whatever achievements have come their way have been due to their faith and strong morals. “We realize that we are also part of a value chain – we cannot grow without our customers growing. Nor can we grow when our staff members remain stagnant. Our Islamic belief also dictates that a portion of every man’s wealth must be redistributed to the poor so we take great pride in serving on various charitable organisations and ensuring that our community, who has served us, is also served,” concludes Shabir

.

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+44 (0) 1603 411569 info@industrysa.com East Coast Promotions Ltd, 2 Ardney Rise Norwich, Norfolk NR3 3QH

www.industrysa.co.za

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