Head of Pick n Pay Clothing talks retail
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.