Annual Report - JD Group

Morkels – your two year guarantee store
Established in 1937 and acquired in
2003, Morkels operates 113 stores in
major cities and towns in South Africa
and Botswana. Morkels appeals to the
aspirational customer, offering branded
appliances, home entertainment,
computers and quality furniture,
on affordable terms.
Mission
We offer a unique company backed two year guarantee on
quality, affordable merchandise provided by dedicated,
professional people at exceptional service levels.
Review
During the year Morkels was successfully restructured to align its
business to the JD Group trading formula. Its product range was
refined to offer its target market affordable, quality merchandise.
Aggressive marketing of this more competitive offering, backed by
the strength of its well known two year guarantee, resulted in
Morkels increasing market share. Top line sales rose by 15,9% like
on like.
The debtors book performed extremely well during the year,
particularly on the collection and management of bad debts,
resulting in a substantial reduction in arrears. An online
automated credit scoring system was introduced late in the
financial year which will further improve the debtors book.
35
Morkels’ integration into the JD Group has been extremely well
controlled, reflecting the strength of their middle management,
the commitment of all employees to manage the transition and to
deliver on shareholder expectations. Service and quality continue
to differentiate the Morkels brand.
Outlook
Jannie Els (55)
Chief executive – 36*
Executive management
Rowland Jonck (44)
Operations – 22*
Charl du Plessis (38)
BJuris
Debtors – 12*
Peter De Backer (39)
Marketing – 19*
Colin Bresler (41)
Merchandise – 5*
Sue Lewis (43)
Human resources – 16*
Pat Kimmince (39)
Logistics – 20*
* years experience in furniture
retail
Morkels will continue to capitalise on the extensive JD Group
infrastructure and selectively expand its geographical footprint
within the boundaries of South Africa. The focus will remain on
improving operational efficiencies, managing expenses and
optimising its excellent supplier relationships in order to provide
discerning customers the quality, affordable products and services
they demand.