Mohamad-Ali Ahmad, Managing Director, Premier Group
• Interview
How has Premier Group benefitted from the merger with Spar?
In 2002, my father Hussein Ali Ahmad founded Premier. The business originally focused on building materials, hardware, and sanitary products. Rapid expansion then led to the inclusion of toys, sports goods, outdoor, stationery, and home decoration categories. In 2010, the food component was added. We have benefited from our partnership with the Spar Group in a number of ways, but most importantly from the group’s purchasing power, which provides a vast range of products to supply to the Mozambican market; however, we did not just replicate the South African business model in Mozambique. Our business model and retail strategy has been built on many years of experience in the Mozambican market and our innate understanding of our customers’ needs, which when coupled with the Spar Group has helped create a unique business model in Mozambique.
How has the retail sector been affected by the economic recession?
The economic recession posed strong challenges to our business and the retail sector, but we have come a long way. The recession was coupled with one of the main constraints for our sector: Mozambique’s massive reliance on imports, which makes the country highly exposed to foreign currency fluctuations. Despite this, I am optimistic about the economic outlook and our future. The country now seems to have weathered the storm well, and we are now looking forward to an economic recovery. We saw a significant change in 2019 compared to previous years. When a recession hits, customers start looking for the cheapest, most cost-effective products. Now, the trend is slowly shifting toward mid-range products. This is an indicator of stability.
How did you come to venture into an expansion plan in the midst of the economic recession in 2017?
With every recession comes opportunities. We had to reinvent ourselves. We have learnt to adapt to changing scenarios for the benefit of our economy, consumers, and employees. In 2017, we launched four retail stores and one factory. The expansion plan included a 5,800-sqm supermarket in Baia Mall; a 1,300-sqm toy and baby store called Fantazia in Baia Mall; a 7,500-sqm hypermarket at Novare Matola Mall; and Maputo Fresh Market, a cash-and-carry store that focuses on supplying fresh fruit and vegetables to businesses, hotels, and restaurants. We have also opened Espiga d’Ouro with a USD50-million investment. It can produce up to 1.3 million pieces of bread per day. Everything is fully automated, which guarantees the highest levels of efficiency and hygiene.
What are Premier’s main strengths?
We provide a wonderful shopping experience, offering a vast range of products with competitive pricing and the highest levels of hygiene. Customer service is what defines us and has been the root of our success and growth. Our primary vehicle for assuring that this is achieved is our people: 1,500 people across five stores and two warehouse distribution centers in Premier Superspar, and over 2,500 people across all the other Premier Group subsidiary companies. Another strength is our ability to guarantee the availability of products at all times. Based on all this, we have won the Best Retail Store Award for nine consecutive years. We also received the Highest Growth in Earnings award and gained recognition as one of the top100 companies in Mozambique by KPMG.
What are your goals for 2020?
We are striving to consolidate and establish ourselves as the first-choice destination retailer within the Mozambican market. To prepare for future challenges, we are currently in the process of implementing process automation and vertical integration, increasing our competitiveness, and improving our overall market offering. We intend to better integrate technology into our business, from automatic orders to automatic replenishments of stock between our stores. We want to leave our footprint as a model and play an integral part in Mozambique’s economic development. ✖