Tradition guides J&E Wholesalers' future - Supermarket.co.za

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Wholesale storewatch loyalty. We are most likely the only genuine wholesaler left in the country,” says Solly Joosub. Up until June this year, J&E operated under the Powertrade name (part of UMS). It has since gone back to its roots and rejoined Shield in a bid to take the business to the next level. Successful across the board Today, J&E trades most successfully in the health & beauty segment. “We only support and purchase cosmetics from local suppliers. We are by far the biggest cosmetics wholesaler in Pretoria,” comments Adam Joosub. Also successful are dry groceries, as well as imported and locally manufactured hardware. Furthermore, customers find a selection of homeware, toiletries, electrical supplies, ethnic hair products and a large sweets department. The wholesaler is the biggest distributor of washing powder in the area too. Being part of Shield will help the directors to include unique products and grow the store from where it is today. The store solely serves licensed traders. “The key to staying competitive is fairly simple. Your systems need to be spot on. Excellent service, correct product range and pricing and the terms and conditions have to be adequate for the customers. We are very focused on branded and trusted products and on driving loyalty. Loyalty always has two sides,” says Mahomed Joosub. The partnership with voluntary buying group, Shield (part of Masscash, a division of Massmart) will enable the team to broaden the store’s offering. “The relaunch enables us to grow the business from where it is today. Through the ties to Walmart, we The directors insist on growing their staff personally and financially. All staff members who have been around for a long time have been able to afford their own cars. hope to include products that will not be available anywhere else and create unique advantages. We are in the process of identifying opportunities,” says Adam Joosub. Staying on top The largest challenge in J&E’s history came when cash & carries mushroomed across the country in the seventies. By switching over to this concept, J&E achieved a price advantage of 10-15%. Their customers also had the opportunity to come into the store and browse through the offering before buying. “Differentiating ourselves here was very difficult, but the novelty eventually wore off. In those days, no telephones or cars were available in the townships and poor people did not have transport to get to the cash & carries. The township market kept us going because our delivery system kept them going,” says Mahomed Joosub. Commitment to great service At least one member of the directors team is constantly on the floor and approachable for customers to efficiently deal with any query. “We are very hands-on and no little detail escapes our attention,” says Shabir Joosub. Orders can also be placed telephonically, via fax or email. Pickers will then pull out the products requested and customers simply have to come in, get their goods invoiced, pay and be on their way again in a matter of minutes. A limited number of customers receive credit within the store. 22 wholesalebusiness Issue 5, 2012
From left to right: Mahomed Joosub, Solly Joosub, Shabir Joosub and Adam Joosub emphasise that J&E Wholesalers does not compete with its own customers. informed weekly and monthly about the store’s specials via SMS, phone and in-store marketing. They receive the store’s weekly and monthly catalogues as well. The specials can also be checked on the store’s own website. “We do not place any newspaper ads because we did not find that to be effective, as they are most suited to stores looking to bring in the public. Instead we market directly to our customers,” says Mahomed Joosub. The majority of customers come from the Pretoria region but some travel as far as from Mpumalanga, North West or KwaZulu- Natal to restock their stores. Motivated staff The store runs off just 60 staff members and J&E is a 100% BEE company. “We don’t believe in micro management. To us, our staff is part of our family and gets treated as such. We also insist on keeping our staff growing personally and financially,” says Adam Joosub. Between 1945 and 1972, J&E Wholesalers occupied the store on the left in this building on Prinsloo Street in Pretoria. The land was expropriated in 1972 and the store moved to Du Toit Street in Pretoria. Because the store mostly trades in bulk, significant supplier discounts can be passed on. “Everybody down the chain, all the way to the end consumer, can see the benefits and savings that come with this strategy. Large quantities sold have caused suppliers to really take to us. Many of them went above and beyond their call of duty to make us more competitive,” says Mahomed Joosub. The excluded public avoids large foot traffic so no trader has to stand in long queues before he can get back to his own store. Stock counts are kept high constantly and the team always ensures sufficient stock for promotions. The five tills process an average of 6 000 bulk purchases per month, with an average basket value of roughly R5 000. “We constantly look for ways to streamline our business to make ourselves more competitive and improve the service we deliver to our customers,” comments Adam Joosub. The team also makes a point of listening to their customers and resolving problems as they occur. “We ensure that customer complaints or issues are dealt with on the spot, whether it’s incorrect stock pulled out or merely a small gripe. We immediately rectify the problem and offer customers something extra to make up for aggravations caused. In the weekly meeting, we then discuss how to ensure that those mistakes are not repeated,” says Shabir Joosub. Direct marketing Promotions, mostly organised in conjunction with suppliers, offer significant discounts or free product samples. Customers are Most promotions are organised in conjunction with suppliers. He emphasises that all staff members that have been around for a long time have been able to afford their own cars. The concept pays off with a staff turnover of way below 5% per year. A courtesy bus is also available for staff members for their travels to work. At weekly meetings, the opportunity is given to them to voice their concerns and complaints. The working hours are comfortable compared to the industry norm. Staff members are expected to work every day from 8am to 5pm and have every weekend, public and religious holiday off. “This is another way of keeping staff happy and wholesalebusiness Issue 5, 2012 23
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Tradition guides J&E Wholesalers' future - Supermarket.co.za

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