Business Day

Head of Pick n Pay Clothing talks retail

- KATHARINE CHILD childk@businessli­ve.co.za

Pick n Pay Clothing is one of the bestperfor­ming divisions in the retail group. Business Day spoke to the managing executive for Pick n Pay Clothing, Hazel Pillay, about the reasons for its success and its plans to double its footprint.

Pick n Pay Clothing attracts more than 400,000 shoppers, according to Marketing All Product Survey (Maps) data. Do you think other clothing firms underestim­ated you?

We used to be underestim­ated. I think our competitor­s probably didn’t think about us as a competitor. Slowly that changed. I think they now realise we offer a unique propositio­n.

As we open up more stores and have a bigger presence, more people will hopefully choose us as a destinatio­n.

How many stores do you plan to open?

We’ve got more than 400 stores and hopefully we’re going to get to 800. Then the brand is going to be a lot more accessible to the market. We’ve been opening up 60 stores per year in the last few years.

What makes Pick n Pay Clothing unique?

We offer a far more aspiration­al shopping experience than our competitor­s in the budget space. We are competitiv­ely priced and our customers are able to buy something with better fabric that lasts a bit longer.

About five years ago we moved away from being a ladies’ wear brand and chose to respond to the needs of the entire SA family.

We also have what we call our pillars of value. These are good quality fabrics, commercial sizing, relevant seasonal essentials and fashion.

I think those are our differenti­ators.

Tell me more about the stores?

When a customer walks into our stores, [they will experience] stores that are incredibly bright.

There are clearly demarcated areas for customers to find the product and understand the pricing.

Consumers know they’re getting bang for their buck. They also love being in our stores because we’re not cluttering them with food and drinks and anything else. They can find their way around the store easily.

Have you been rolling out green-rated energy efficient

stores that use locally produced and recycled material?

We have a big commitment to ESG [Environmen­tal, Social and Governance] and sustainabi­lity. There are product ranges in stores that are made from recycled materials or are made with [Better Cotton Initiative] BCI cotton. We are opening up five-star greenrated stores and our recently opened Sandton store was a trial for this. We’ll be able to roll more out as we continue to upgrade our stores.

In terms of the retail clothing masterplan, retailers are expected to procure locally manufactur­ed goods. How does Pick n Pay fare?

About 45% of our clothes are manufactur­ed locally. We want to increase that to 60% over the next five years. It will take time to get there, but we are committed to local manufactur­ing.

Has the rise of Chinese online retailer Shein affected Pick n Pay Clothing’s sales?

I can’t say specifical­ly how Shein has taken market share from us. We know through credit card research that Shein is growing. But they have a younger demographi­c while Pick n Pay is more focused on families and middle-aged customers. I think Shein impacts the retailers that are aimed at the younger market.

I’m sure there are customers I who can ’shop t say the at Pick impact n Pay is highly and who also shop at Shein. But we have been growing our volumes and our like-for-like growth, so negative.

Tell me more about your developmen­t programme for fashion designers.

We started the Futurewear programme in 2020. We run quite a rigorous process to recruit three or four designers a year. It’s all about promoting local talent and giving them a platform to launch a career. They get mentored in design by Gavin Rajah. They then develop business acumen skills by working with Pick n Pay Clothing. Our customers absolutely resonate with the programme. Customers want to support locally manufactur­ed products by local designers.

Customers understand if we’re giving back to the community, we’re able to create more jobs.

The designers learn about designing high volumes of garments as opposed to producing very small quantities or bespoke items.

What is so different about designing for large retailers?

Designers have to do something a bit more commercial. They go from working autonomous­ly to working with about 15 people, including individual­s from the marketing, design and buying divisions. [Designers learn] that something could look really great on paper but may not translate into a commercial­ly viable propositio­n.

When we choose the winners, we always take them through that journey because it’s very stressful having all this feedback. It doesn’t always feel positive. You can design 10 things and nothing might transpire from them.

Designers also learn about working with local factories. They are able to develop a broad understand­ing of how to run a business more efficientl­y,

There are benefits Pick n Pay Clothing gets in return. These collaborat­ions have helped us to offer our consumers accessible designer wear at affordable prices. You can buy something unique for your wardrobe for under R500.

This interview has been edited for clarity and brevity.

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Hazel Pillay

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