PESTLE Analysis of Pick n Pay

Pick n Pay Stores is a retail chain store South African multinational company. Raymond Ackerman founded the retail chain store brand in 1967. The company has established a network of approximately 2204 retail chain stores across South Africa and the African countries. Today, we’ll discuss the PESTLE analysis of Pick n Pay; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.

Political Factors Impacting Pick n Pay

Some of the main political factors in the Pick n Pay PESTLE analysis are as follows;

I-Government Change

The South African national government and the congress are weakening and losing their grip over the government operations. The opposition social market economy is earning significant support from the people. However, the change of government would introduce new retail policies for businesses and companies. Pick n Pay should pay heed to the political power change, and adjust their business strategies and operations relevant to the government policies.

II-Political Unrest

South Africa has been experiencing political unrest for the past few years due to various economic and political power factors. It increased the total number of store looting, vandalism, robbery, and stealing cases. However, such cases and the overall unstable political environment have jeopardized the business operations of the brand.

Economical Factors Affecting Pick n Pay

Some of the main economic factors in the Pick n Pay PESTLE analysis are as follows;

I-Economic Recession

The African economy has been going through an economic recession for the past few years due to the drought in Zambia and other economic, geographical, and environmental factors. When people have limited purchasing power and lower disposable income, they would reduce their spending to only necessary products and goods. It reduces the overall sales and revenue of the company.

II-Consumer Spending Pattern

The consumer spending pattern keeps on changing in different countries and states due to various economic factors like interest rates, inflation, and taxes. Pick n Pay retail chain store brands should carefully analyze the consumer spending pattern in particular regions over time to avoid the overstocking and stock wastage problem.

III-Omnichannel Strategy

Pick n Pay needs to implement an omnichannel strategy in its retail chain store network. It comprises employing multinational channels like online stores, e-commerce platforms, physical stores, and franchised-owned stores to keep up with customer demands. However, it helps the company to increase its sales and network.

Social Factors Impacting Pick n Pay

Some of the main social factors in the Pick n Pay PESTEL analysis are as follows;

I-Higher Layoffs

Pick n Pay retail chain store brand laid off a lot of employees and workers due to poor trade conditions and limited sales. The key benefit of the large network of Pick n Pay is to generate employment opportunities for locals in the African continent. However, poor trade policies are negatively impacting the business operations of Pick n Pay.

II-Protest against Dairy Brands

Many South Africans are protesting against dairy brands and other companies. Pick n Pay store brand carries a vast variety of products and goods from multiple brands. As a result, many people are boycotting the chain store brand for keeping the particular brands in its stores.

Technological Factors Affecting Pick n Pay

Some of the main technological factors in the Pick n Pay PESTEL analysis are as follows;

I-Advanced Technology

Pick n Pay is implementing advanced technology like AI, ML, robotics, and data analytics in its chain stores network. It allows the retail chain store brand to predict the customer shopping trends in the upcoming season, carefully manage the stock with the robotic technology, and efficiently maintain the record.

II-Digitalization

Pick n Pay chain store is investing a significant amount of capital resources in the implementation of digital technology in its entire retail chain store network. The advanced centralized database system would help the company to efficiently manage the store’s network, and stock, and keep up with stock-outs.

Legal Factors Impacting Pick n Pay

Some of the main legal factors in the Pick n Pay PESTEL analysis are as follows;

Regulatory Compliance

Pick n Pay store brand needs to comply with the government regulations of the country. It comprises food and health safety regulations, import and export policies, trade regulations, taxation policies, and other legal requirements. The regulatory requirements would help the retail chain store brand to smoothly perform its operations without any delays and disruption.

Environmental Factors Affecting Pick n Pay

Some of the main environmental factors in the Pick n Pay PESTEL analysis are as follows;

Environmental Sustainability

Pick n Pay has made a strong commitment to environmental sustainability. The retail chain brand has taken steps like using renewable sources of energy, biodegradable packaging, and organic material to decrease the carbon emission rate. Environmental sustainability initiatives would help the company to attract the eco-friendly customer market.

Conclusion: Pick n Pay PESTLE Analysis |PESTEL Analysis of Pick n Pay |External Environmental Analysis of Pick n Pay | Strategic Analysis of Pick n Pay

After an in-depth study of the pestle analysis of Pick n Pay; we have realized that Pick n Pay is the world’s leading retail chain South African brand. If you are learning about the Pick n Pay PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.