New store rises from the ashes - Supermarket.co.za

Township storewatch
New store rises from the ashes
TAG Powertrade Cash & Carry gets another lease on life
The exterior signage has been redone as part of the rebuild.
By Linda Wilkins
Like the mythical Phoenix that
obtains new life by rising from
the ashes of its predecessor, TAG
Powertrade Cash & Carry has been
given a new lease on life after a
devastating fire burnt down the
original store on 8 October 2012.
A new beginning
First built in 1992, TAG Powertrade Cash &
Carry has become a well-known landmark
in Mafikeng, catering to both wholesale
and retail customers in a 50km radius and
to many loyal customers who support
the store. Despite the entrance of strong
competition in the area, TAG Powertrade
Cash & Carry has survived and thrived.
The owners, Iqbal Gutta, his brother
Jameel and father Yoosuf Gutta, have a
long-time link with Mafikeng, as Yoosuf’s
father started the business with their first
cash & carry store in the town in 1932. In
those days, Mafikeng was a strategic rail
route from South Africa to Zimbabwe and
Zambia. From 1977 to 1994, Mafikeng was
part of Bophuthatswana, but after 1994
Bophuthatswana was incorporated back
Store: TAG Powertrade Cash
& Carry, member of Unitrade
Management Services
Location: 64 Station Road,
Mafikeng, North West
Trading area: 2 500m 2
Trading hours: Monday to Friday
8am-6pm, Saturday 8am-2pm,
Sunday 8am-1pm
Till points: 14
Staff complement 60
into South Africa and TAG Powertrade Cash
& Carry in Mafikeng along with it. Like so
many independents, the business has been
part of South Africa’s history and travelled a
long journey to success.
The family started trading with one store,
which was started in 1932. This 850m 2
business is still operating and is a sturdy
complement to TAG Powertrade Cash &
Carry, which, says Iqbal Gutta, they consider
their flagship, making the fire even more
devastating for the family. However, the
indomitable spirit that brought Yoosuf
Gutta’s grandfather from the Gujarat region
of India to the Natal coast in 1896 prevailed
in the present generations of the family.
They dusted themselves off, regrouped and
began the rebuild of TAG Powertrade Cash
& Carry in November 2012. The store reopened
for trading on 18 March 2013 and
the official launch kicked off on 28 March,
with launch specials running through to
4 April 2013.
Then and now
Historically, TAG Powertrade Cash & Carry
was always a hybrid store, but with a
stronger bulk component. With the rebuild,
however, came new thinking that it was
time to maximise the growth potential of
the retail side of the business.
The new store therefore features valueadded
departments with a view to securing
more retail business. Consequently, there is
now increased focus on the retail consumer,
which is reflected in the offer of the new
store. Even so, the business will continue to
trade as a hybrid offer.
“Wholesale is an integral part of our
business,” says Iqbal Gutta, adding that
there are several tills allocated exclusively
to bulk purchases, which will benefit all
customers. The trading area of the store
remains at 2 500m 2 after the rebuild, but an
extra warehouse/storage area has been
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Township storewatch
built, which, together with the existing
warehouse space, brings the total stockholding
area to 1 200m 2 .
Looking inside the store, dry groceries
were the extent of the previous store’s
offer, but they have now added perishables
including IQF chicken, fresh fruit and
vegetables, a butchery and hot foods
takeaway to the mix. “The butchery is a
state-of-the-art production facility that
allows us not just to cut meat but also
to manufacture items such as boerewors,
biltong, salami, sausages and patties,”
explains Iqbal. The butchery is managed by
Idris Raffee, who, says Iqbal Gutta, “has been
instrumental in setting up the department.
Food and meat preparation are his passion
and he has a wealth of experience.”
The new departments have added
another dimension to the store. “We wanted
to bring in more value to create a real
hybrid offer for our loyal customers,” explain
Iqbal and Jameel Gutta.
Bulkheads going up, display cabinets about to be installed during construction.
Branded trolleys are an integral part
of store branding.
A true partnership
TAG Powertrade Cash & Carry joined
Unitrade Management Services, a voluntary
trading association providing a full franchise
facility (without the associated costs) to
independent entrepreneurs, on 1 June
2011. Unitrade, which was started in 2001
by current CEO Jad Pereira, is the only
independent group in South Africa offering
a full basket of products to its members.
These value-added services include
national and divisional buying for deals and
promotions, unique buying facilities for
individual needs, marketing and advertising,
greater credit facilities, store development
and turnkey projects and unique community
marketing development.
The aisles and shelves during construction. The aisles are wide enough to accommodate
flat-bed trolleys for bulk purchases.
Unitrade’s focus is assisting its members
in building their businesses through
strong partnerships and maintaining
the competitiveness and relevance of
independents in an increasingly competitive
environment. According to Iqbal Gutta,
the benefits of belonging to Unitrade have
been extensive. “We have had great support
from Jad, who we have known since 1983,
as well as from the UMS Northern Division
management team, who are always willing
to go the extra mile,” he says.
Customer-centric
With its new offer, TAG Powertrade Cash
& Carry anticipates an increase in retail
feet through its doors. The split between
wholesale and retail sales is presently about
35% wholesale and 65% retail. “We are
hoping to see a 15% growth in 2013,” says
Iqbal Gutta.
The store is situated between two taxi
ranks, making it easy for commuters to
access, and while it isn’t in the main street
of Mafikeng, directional signage increases
awareness of its position.
There are 14 checkouts in total, sufficient
to cope with long queues, and two of the
checkouts are allocated to bulk purchases
only, to keep things running smoothly.
Barcode scanning also streamlines the
checkout process.
16 wholesalebusiness Issue 3, 2013

A Sasko promotional truck provided entertainment on launch day.
The queues during TAG Powertrade’s official launch day were long but moved fast,
thanks to all 14 checkouts being open.
There are 60 staff and 10-15 casuals
working at the store at any given time
and they are kept busy by the 11 000
transactions that go through the tills on
average each week. Iqbal Gutta has lots of
praise for his staff, particularly one of his
managers, Sahana Mirza. “She has been with
us from the beginning and to describe her
as efficient is an under statement. Sahana is
an asset to the company and her support
throughout has been loyal and unwavering,”
he says.
The store has a comprehensive management
team and Iqbal says some of them
have been part of the business for close to a
decade. “They are loyal, hardworking and
integral to the sustainability of this
business,” says Iqbal Gutta.
The store caters for the general public,
small traders, schools, catering companies
and between 200-300 stokvels. They
offer regular deliveries to their wholesale
customers in a 50km radius, with one
delivery truck and three bakkies supplying
this valuable service.
Community living
One of TAG Powertrade Cash & Carry’s
most important USPs (unique selling points)
is the store’s reputation in the community.
“We know our customers well and make
sure that we cater for them in every way
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Township storewatch
possible,” says Iqbal. The store provides
a social grant payment facility to the
community and Iqbal, Jameel and their staff
ensure that they are on standby on grant
payment days to assist the beneficiaries
where necessary. “In addition to our strong
links to the community, our other USPs are
our stock holding facility, pricing, range,
value-add departments and the fact that we
are a hybrid store with an offer for bulk and
retail shoppers, as well as a spacious, neat
and clean store layout,” says Iqbal. There is
also an ATM on site, adding to the overall
value offer.
Getting ready
Working in partnership with the UMS
Northern Division team, the store
underwent the stressful process of the
rebuild and prepared for the pre-launch
campaign and official launch day. Iqbal,
Jameel and Yoosuf Gutta project managed
the entire rebuild from start to finish
and the store teemed with workmen
throughout. Either Iqbal, Jameel or Yoosuf
Gutta were on site every day to monitor
proceedings and iron out problems. The
rebuild includes new interior and exterior
signage, with lifestyle images adding to the
shopping experience and giving the store a
genuine, warm yet still aspirational look and
feel. In addition to the name of the store,
the exterior signage also features the IGA
logo, showing the store’s affiliation to the
Independent Grocers Alliance. This is a result
of Unitrade’s recently formed partnership
with this global retail group.
Spreading the message
A pre-launch campaign that included
‘teaser’ advertisements in the local
Mafikeng Mail newspaper ran for four
weeks prior to the official launch on 28
March. The advertisements highlighted the
new departments, drew attention to the
revamped grocery range and also showcased
Unity, the new private label range from
Unitrade Management Services, which is
available exclusively to Unitrade member
stores. TAG Powertrade Cash & Carry also
printed 40 000 leaflets that were distributed
via ‘knock-and-drop’ in the lead-up to
the launch. In addition, the pre-launch
campaign included live reads on local radio
Mafikeng FM.
The rebuilt store features a number of new departments, including a butchery and fresh produce.
The trading space in the rebuilt TAG Powertrade Cash & Carry remains
at 2 500m 2 , with additional 1 200m 2 warehousing space.
A second campaign ran for one week from
28 March to 4 April 2013, advertising launch
specials on leaflet and in the Mafikeng Mail.
These specials were also advertised on the
local community radio station Mafikeng FM
as part of an outside broadcast at the store.
The joint marketing programme, which is a
value-added service offered by Unitrade to
progressive independents, produced results
well beyond market expectations.
Launch day!
TAG Powertrade Cash & Carry had its
official launch on 28 March 2013, with
suppliers, local VIPs, representatives from
UMS and of course the end consumer all
visiting the completed store. There was
exceptional interest shown in the store and
the aisles were at times totally blocked
with excited shoppers. In-store, there were
posters and other point-of-sale elements
featuring the top known value items (KVIs),
as well as a ‘pop-a-baloon’ consumer
competition to win spot prizes. Shoppers
could also enter a competition to win a
food hamper by placing their till slips into
an entry form box for a lucky draw. A DVD
player and microwave were among the
prizes to be won, while free caps, t-shirts,
other prizes and gifts created even more
18 wholesalebusiness Issue 3, 2013

The 2500m 2 store includes a hot food and takeaway department, which is a big drawcard
for new and existing customers.
excitement on the day. A Sasko-branded
promotional truck also provided enter tainment
and music.
All staff members have been kitted out in
new Powertrade-branded uniforms, which
were ordered in time for the launch. Special
emphasis has been placed on training and
service levels and this could be seen on
the day and afterwards, as the staff attend
to the needs of their customers. The store
features Powertrade and UNITY point-ofsale
such as bunting, posters, shelf-talkers,
hanging mobiles and branded gondola ends,
which add to the visual impact of the shelf
and gondola end displays.
During the week of the official launch,
UNITY wet demos were carried out in-store
and sales of the brand went well, with
shoppers showing much interest in the
various products in the range. Starting from
launch day, the store has been very busy,
with merchandisers having to constantly
replenish the shelves.
TAG Powertrade stocks Unity, the private label
brand from UMS.
Staff members are kitted out in Powertrade
uniforms, adding strength to the store’s
branding.
On the day of the launch, at times the aisles were totally blocked with shoppers.
Welcome to the new TAG
Powertrade Cash & Carry!
The new TAG Powertrade Cash & Carry is a
beautiful store. Spacious, modern and light,
customers are sure to love it. Everything has
been well thought through and the design
and layout – from the wide aisles that
accommodate the wider flat-bed trolleys of
bulk shoppers, to the reinforced cemcrete
floors that not only look good but will stand
up to hard foot and trolley traffic – are a
powerful combination of good looks and
functionality.
Fluorescent tubes provide more than
adequate lighting throughout the store. In
addition, state-of-the-art refrigeration has
been installed, including six high-back units,
three jumbo island units, a 40m 2 freezer
room and a 24-door cold room facility.
Overall, there are approximately 15 000
SKUs now, compared to the 10 000 SKUs
the store carried previously.
“TAG Powertrade represents the future
of independent hybrid cash & carry in
Southern Africa and can be seen as a model
for the Powertrade brand going forward.
The design of this Powertrade store has
been carefully crafted to suit the needs of a
combination of retail, hawker and wholesale
customers.
The management team at TAG Powertrade
has an in-depth knowledge of the
local market and this makes them a
formidable competitor in the area. They
are part of the community and have a
tailor-made business solution that would
be difficult to replicate, says Dustin Pereira,
executive GM of Unitrade Management
Services Northern Division.
The future for TAG Powertrade looks very
promising, especially with the continued
partnership programmes available to the
business as part of the Unitrade group.
This includes skills training for the store’s
management and staff, which will be
available through the soon to be launched
Unitrade Academy.
One of the advertisements that ran
during the launch campaign read: “TAG
Powertrade – the best shopping experience
in Mafikeng.” If the hard work and effort
that Iqbal, Jameel and Yoosuf Gutta and the
UMS Northern Division team have put into
the new store are anything to go by, then
this is fast going to become a reality!
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