The project studied four types of retailer; FMCG retailers, cash-based clothing retailers, credit-based clothing retailers, and furniture and appliance retailers. It mapped the landscape of financial services and products offered by these retailers in South Africa, focusing on those who serve lower income segments of the market. In addition, five detailed case studies were conducted. These included Shoprite Checkers, Pick n Pay, The JD Group, Pep and Edgars. The case studies were used to understand the evolution of the financial services offering and to build an understanding of the primary factors underlying the business case for retailers to provide financial services. Please access the resulting overall retailer market map of the specific products at Eighty20 XtracT portal.
The primary motive for retailers to offer financial services is to increase revenue and bottom line profits, either directly from the provision of financial services or from increased sales of existing product offerings enabled by the provision of financial services. The three main categories of drivers for increased profits are:
- Increased footfall - attracting new customers into the store and increasing the number of interactions with existing customers.
- Driving more profitable customer behaviour - encouraging customers to increase the size and number of higher margin products in their basket.
- Leveraging existing assets - leveraging physical store networks, payments infrastructure, brand name and client data to the further maximise the value through the sale of financial services.
The findings from the study were presented by Eighty20 in Johannesburg, South Africa at the FinMark Trust Stakeholder Workshop in November 2013.
The findings from this study and the Why retailers? study were presented by Cenfri and Eighty20 at a second combined FinMark Trust Stakeholder Workshop on the 16th of September 2014 in Cape Town, South Africa.