SWOT Analysis of Pick n Pay. The Pick n Pay Group is a fast-moving retail company. The company operates its business under three brand names; TM Supermarkets, Boxer, and Pick n Pay. Jack Goldin laid the foundation of the retail company in 1967, and he sold its initial four stores to Raymond Ackerman the same year. The headquarter of the retail brand is in Kenilworth, Cape Town, South Africa.
Pick n Pay has different types of stores, and they’re as follows;
- Supermarkets Pick n Pay, TM, and Boxer
- Market Stores Pick n Pay
- Express Pick n Pay
- Liquor Pick n Pay and Boxer
- Clothing Pick n Pay
- Hypermarkets Pick n Pay
- Punch Boxer
- Build Boxer
Some of the main products and services of Pick n Pay are as follows;
- Baby products
- Household cleaning
- Bill payments
- Financial services
- Traveling services
- Hardware and building
- Beauty and Health Products
According to an estimate, the annual revenue of Pick n Pay in 2022 was 6.37 billion US dollars. Out of which, the net income of the company was 0.11 billion US dollars. Approximately 90,000 people are working for the company to manage its worldwide operations
Some of the top competitors of Pick n Pay store are as follows;
- Spare Group Ltd
- Shoprite Holdings
Today, we’ll discuss the swot analysis of Pick n Pay. It is going to analyze the internal strengths and weaknesses; external opportunities and threats to the retail chain brand. Here’s the swot analysis of Pick n Pay as follows;
Strengths of Pick n Pay
Some of the key strengths in the swot analysis of Pick n Pay are as follows;
Economies of Scale
The mass-scale production and operations allow the company to achieve economies of scale. It helps the company to lower the per-unit cost of the products and services. However, it is good both for the customers and the company; economies of scale have allowed the company to achieve the market leadership position.
Pick n Pay also has got an e-commerce platform, which allows the company to reach diverse geographies. In fact, the retail store brand is increasing its sales on the e-commerce platform by employing various marketing and promotional strategies.
Loyal Customer Database
Pick n Pay store group has got a loyal database of customers, and it helps the company to strengthen its market position without jeopardizing sales. The reason customer is loyal to the chain retail store brand is because of the quality service and friendly user experience.
Pick n Pay has a network of 2000 retail stores in more than 10 countries across the African continent. The vast network of chain retail stores has allowed the company to diversify its revenue stream from different regions. Overall, the vast network reduces the risk and amplifies the sale of the company.
The retail store brand has launched a massive rebranding in 2007, and it allowed the company to change the perception of the people and maintain the company’s reputation.
CSR and sponsorships are great marketing and promotional techniques. Pick n Pay stores also have sponsorship and CSR programs in order to promote its branded stores, supermarkets, products, and services.
Weaknesses of Pick n Pay
Some of the main weaknesses in the swot analysis of Pick n Pay are as follows;
Limited Growth in Developing Markets
It is no doubt Pick n Pay store brand has covered a significant market of the African continent. The growth of the retail company is very low compared to its size and network in the ten countries.
Losing Market Share
The vast network of the retail brand is not increasing the growth and revenue of the company; rather it is causing management issues. That’s why the Pick n Pay store brand is decreasing its market share.
Not Focused on Marketing
Pick n Pay store brand has a very marketing and promotional area, and the company hasn’t many steps to restore its brand image and market reputation.
Opportunities Available to Pick n Pay
Some of the available opportunities in the swot analysis of Pick n Pay are as follows;
African and Asian markets have got great growth potential, and the company should expand its network further in developing countries. It would help the company to strengthen its position and increase its market position.
Automating Supply Chain
Pick n Pay store brand should invest in the supply chain and distribution channel automating technology. It would help the company to avoid delays, speed up the operational processes, and deliver the products to the customers on time.
Expanding Product Portfolio
Along with increasing its network, the retail brand should expand its product portfolio further in the sub-categories of products and services. There are market niches that the company could tap into and take advantage of the opportunity.
Threats to Pick n Pay
Some of the potential threats in the swot analysis of Pick n Pay are as follows;
It doesn’t matter what your location is, the retail customer market is highly competitive across the world. Shoprite Holdings, Massmart, Spare Group, and USave are some of the top competitors of the retail brand in the African market.
Walmart and various other Supermarket brands are running their business across the world. They are offering the same substitute products and services at a much lower price, and it gives them a competitive edge over the competitors.
International political conflicts, the oil crisis, and various other issues have pushed the global economy into recession. The circumstances are worst in developing countries, and that’s why the company’s growth is decreasing.
Conclusion: SWOT Analysis of Pick n Pay
After an in-depth study of the swot analysis of Pick n Pay; we have realized that Pick n Pay is a leading African brand. If you are learning about the retail chain store brand Pick n Pay, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.