SA retailers still reeling a year after the July unrest as hundreds of stores remain closed The July unrest of 2021 left 354 people dead, wiped R50 billion from the economy, and damaged nearly 1,800 stores belonging to South Africa's major retailers. A year later, hundreds of these stores remain closed, with some, particularly those gutted by fire, only due to reopen in 2023. Business Insider South Africa studied the most recent reports from retailers such as Pepkor, Shoprite, Pick n Pay, Spar, The Foschini Group, and five others to see how the recovery is progressing. South Africa's major retailers are still rebuilding stores that were looted and damaged during the July unrest, which ripped through parts of KwaZulu-Natal and Gauteng last year. Mayhem enveloped parts of the country following the imprisonment of former president Jacob Zuma a year ago. It started with the blockading of roads north of Durban. Trucks were looted and torched. Within 24 hours, the unrest had spread to city centres, with rioters taking to the streets of Pietermaritzburg and Durban. Then it spread to Gauteng. Police struggled to contain the riots. On 12 July, the South African National Defence Force was deployed to help quell the unrest. Once the dust settled, a week and one day after it began, 354 people lay dead. The unrest wiped R50 billion from South Africa's economy and left millions jobless. It shattered investor confidence and left hundreds of local businesses in ruins. Nearly 1,800 retailers' stores were looted and damaged, according to the South African Property Owners Association (SAPOA), with 100 shopping malls set alight. A year later, retailers are still reeling from the wanton destruction of stores. Many major retailers approached by Business Insider SA declined to comment on their respective rebuilding efforts and, instead, pointed to annual and interim results presentations which detail the unrest's long-lasting impact. 1 A total of 1,638 stores were reported as damaged during the unrest by nine retailers looked at by Business Insider. Although more than 1,000 of these stores have since been repaired and reopened, 209 remain closed, and nine won't return at all. Pepkor, which owns popular brands like Pep, Ackermans, and Tekkie Town, was the hardest hit. Almost 550 of these stores were damaged during the unrest. By April, Pepkor had reopened 479 stores. "The reopening of the remaining 70 stores is delayed due to the need for property owners to rebuild stores or shopping centres," Pepkor said in its latest interim results. Shoprite reported damage to 231 of its stores as a result of the July unrest, with inventory write-downs of R968 million and property write-downs of R100 million. The retail group has since reopened 186 stores, with 45 stores still closed. Five U-Save stores, one liquor shop, and one OK franchise will not reopen. Pick n Pay lost R1.8 billion in sales because of the unrest, along with material damage losses of R958.7 million, including inventory write-offs and damage to property, plant, and equipment losses. The supermarket chain suffered damage to 212 stores, of which 199 have since reopened, according to Pick n Pay's integrated annual report for the 52 weeks ended 27 February. The Foschini Group (TFG) also incurred severe losses. Damages alone neared R650 million, with 198 stores being looted and damaged. By 31 March, 174 stores had reopened, while 24 remained closed. Only 22 of these remaining stores will be reopened and only in 2023. Another clothing retailer, Mr Price, had 111 of its stores damaged during the unrest, with inventory write-offs alone close to R160 million. A total of 96 Mr Price stores had reopened by April. Five stores are expected to reopen in 2023 and the remaining 10 only in 2024 due to "extensive centre damage". Spar suffered damage to 184 of its stores. A total of 162 have since been reopened, but 13 of its regular grocery stores and nine TOPS liquor outlets remain closed. Massmart, owners of Game, Makro, and Builders, among others, had 43 stores directly impacted by the unrest. It also suffered damage to two of its distribution centres. The 2 company started the year with its distribution centres still closed, along with nine of its stores. Massmart declined to comment on its recovery efforts over the past six months. Clicks recorded 53 stores, including one Body Shop outlet, damaged during the unrest, with 47 having been reopened by March. "Of the six still to be opened, the final damaged store is scheduled to open in the 2023 financial year," Clicks said in its latest set of interim results. "The civil unrest resulted in inventory write-offs of R333.6 million, property, plant and equipment impairments of R61.3 million, loss of cash on hand of R3.4 million, and additional costs of R28.2 million incurred to limit additional losses." Lewis Group, a leading retailer of household furniture and electrical appliances, had 57 of its stores damaged a year ago. By April, 52 of these stores had reopened. "The remaining five stores are trading from temporary premises whilst damages are being repaired," Lewis said in its latest integrated annual report. A follow-up survey undertaken by SAPOA in October and November found that extensively damaged and looted buildings were likely to take a year since the date of the unrest to resume full operations. Buildings destroyed or seriously damaged by fire would take much longer, some up to two years, to reopen. Almost 40% of retail properties affected by the unrest were badly damaged and burnt, indicating that it could still take another year for the remaining stores to reopen if they are to reopen at all. Source: https://www.businessinsider.co.za/july-unrest-recovery-by-south-african-retailers-a-year-later-2022-7

QUESTION FIVE [20]

5.1 In an endeavour to rollout operational excellence, stakeholder relations are key; what undertakings can retail practitioners execute to have the best results in building relations? (6)

5.2 What characterises the South African customer today, given that change is the only constant, what should retail managers do to keep up with change? (6)

5.3 What tactical interventions can be used solve customer problems in retail? (4)

5.4 What are the key elements to be included in a retail managers job description? (4)