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were launched in October. The virtual websites also serve to
supplement the smaller store format by offering a broader
range to customers than what is available in the store.
Supply chain, logistics and distribution – The logistics
network roll out has been one of the key strategic projects for the
last three years. The Boksburg distribution centre went into full
scale operation, a further three distribution centres were opened
in Gauteng, Eastern Cape and Western Cape, while the Durban
unit was completed and has gone live on 1 November 2012 for
stock intake. Approximately 728 stores have thus far transitioned
into the new distribution network. 13 standalone cross docks
were also opened and are live.
Many storerooms and hubs in the old network were closed as
the new facilities went live. Staff were either transferred to
the logistics supplier Barloworld, relocated from stores to the
central facility, or took voluntary retrenchment. The Retail
unit has now achieved the last leg of its three-year strategy to
Furniture
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Geen &
Richards Dial-a-Bed Wetherlys
>business overview
obtain a centralised, single logistics and distribution network
and capability. It is also the first of its kind in South Africa.
Gross margin in the Retail unit increased by 2% to
R2 134 million, on the back of merchandise sales growth of
1,7% and an improvement in the gross margin percentage
from 44,2% to 44,5%. As per our philosophy, we will pursue
profitable quality growth to drive returns rather than purely
volume growth. Therefore the focus this year has been on
preserving the margin by resisting the temptation to dilute
margin in an attempt to increase sales. This strategy will be
constantly reassessed in relation to market conditions.
The improvement in margins was achieved despite the closure of
the Roodefurn production facility and the costs associated with
this. Margins are expected to be firm in 2013. Over the longer
term, once efficiencies are at a satisfactory level and growth
rates in the economy are at the right levels, the high margins will
be applied to further improve the value to customers.
Rest of
Africa Total
35 78 61 30 77 1 041
– 3 1 1 1 39
1 3 9 3 2 57
(3) – (12) (6) (1) (2)
58 459 62 715 17 290 49 006 51 084 673 460
(7) 3 (13) (2) 2 (4)
1 670 804 283 1 634 663 647
412 501 299 279 399 4 792
9 10 6 6 8 100
3 (4) – (10) 9 2
12 (3) 6 (6) 7 5
55 51 6 – 64 63
489 639 230 372 914 8 053
African Bank Investments Limited | Integrated Report for the year ended 30 September 2012 67