Managing stakeholder relationships — Truworths
Customers

Rationale for engaging: As the consumers of our merchandise and users of our account facilities, customers are overwhelmingly the primary source of revenue for Truworths. Engagement covers all account and cash customers in South Africa and the rest of southern Africa. Store management and employees, call centre agents and customer relations employees are the main contacts with customers. Engagement occurs informally in stores, formally through call centres as well as through our e-commerce websites, e-mailers and social media platforms such as Instagram and Facebook. Consumer satisfaction is tracked on an ongoing basis using the Net Promoter Score as a benchmark.

Key engagement |
Response to |
Health and safety in stores a key concern for customers. |
Strict health and safety protocols have been implemented, with stores actively maintained at COVID-19-compliant levels to ensure the safety of employees and customers during the pandemic. In-store layouts meet social distancing requirements while the number of customers permitted in stores is limited. Specific protocols are followed before merchandise is returned to the floor to ensure customer safety. |
Customers limiting personal contact due to COVID-19 and increasingly engaging through digital channels. |
Truworths responded by increasing its investment in digital new account acquisition and customer management capabilities through digital marketing, new application processes and broader use of digital channels across the customer life cycle. |
Protection of personal information. |
The Protection of Personal Information Act (POPIA), which regulates the processing, storage and use of personal information, impacts the channels available for customer engagement. Truworths has addressed all aspects of POPIA compliance to ensure the ability to engage with customers in the future. The customer base has been expanded significantly across account customers and loyalty programme customers to ensure that Truworths has the right to communicate with customers in the future. |
Employees

Rationale for engaging: Employees provide their talent and skills to ensure the business operates in an efficient and sustainable manner. Engagement includes all full-time and flexi-time employees, with line management being the key point of engagement, supported by the Human Resources Division. Employee engagement occurs frequently and extensively through formal communication issued by the business, formal and informal training, personal interaction with line management, the online platform to engage directly with the CEO, through in-house presentations covering various topics such as business performance, frequent COVID updates as well as through WhatsApp communication channels.

Key engagement |
Response to |
Impact of COVID-19 regulations on employees working from the office. |
Communication includes motivational videos, frequent CEO videos to all staff on a variety of issues and written communication, some of which has focused on ensuring compliance with COVID regulations during the changing lockdown levels to ensure that employees adapted and adjusted to the requirements of the regulations. Where possible, Truworths has continued to follow a hybrid model of employees working from home and the office. A cautious approach has been adopted to the percentage of employees working in the office to ensure personal distancing and safety. Employees will mostly be returning to work in the office when conditions allow as informal and formal teamwork is one of the five core values of Truworths. |
Safety and protection during the pandemic, including education on COVID-19 vaccinations and mental well-being. |
Employees have been encouraged to be vaccinated against COVID-19, with all senior management having taken the lead by being vaccinated. Employees are able to use paid pandemic leave, which was introduced in 2020, to get vaccinated and for recovery should they experience post-vaccination symptoms. A vaccination plan was formulated and included in the company’s COVID-19 policy. Employees have also been educated on the importance of maintaining mental well-being as this is an issue encountered by several employees. Employees affected by the loss of a colleague due to COVID-19 were offered pyscho-social support. |
Implementation of POPIA and general information security. |
Ahead of the implementation of POPIA from 1 July 2021, communications and e-learning channels were used to educate employees on POPIA, the protection of customer and employee data, and protection against phishing and cyberattacks. |
Engagement on business performance, incentives, acknowledgement and awards to general staff. |
Regular written, video and virtual conference communication on company performance, future objectives, achievement of past objectives, awards and incentive rewards to staff. |
Suppliers

Rationale for engaging: Suppliers are the providers of merchandise and other goods and services to Truworths. This includes local and international product manufacturers as well as landlords. The primary sources of contact are executives, merchandise buyers and planners, and management. Engagement occurs formally and informally through supplier assessments, merchandise design and order negotiations, account management interaction and supplier development discussions.

Key engagement |
Response to |
Difficulty in predicting demand for certain products has resulted in local suppliers and CMTs being placed in challenging positions in terms of available capacity. |
The senior merchandise management team has constantly reviewed sales plans of key locally produced products and sought innovative opportunities to balance seasonal production flows to assist with the challenge of peaks and troughs in production that were exacerbated by the impact of COVID-19. |
Ensuring that Truworths has a sustainable and reliable supply base requires continual monitoring of supplier performance and, where necessary, improving both quality and delivery performance. |
A supplier scorecard is used to review performance, and clear targets are set for each supplier. This encourages suppliers to improve their performance and therefore results in improved ability to manage delivery and quality performance even during the very difficult circumstances over the past year. |
Regulators

Rationale for engaging: Regulators are the custodians of legislative and regulatory compliance and providers of licences to trade. This includes government departments, regulatory bodies, and local authorities, with the engagement being managed by the executive directors, finance, legal and account risk executives. Engagement occurs through regulatory filings and submissions, formal and informal discussions regarding key issues, dispute resolution mechanisms and through the National Clothing Retail Federation (NCRF).

Key engagement |
Response to |
Master Plan for the Retail – Clothing, Textile, Footwear and Leather value chain. |
Truworths is a signatory to the Master Plan and is committed to the principle of increasing its local procurement of merchandise where possible, and generally providing support for local manufacturing. Extensive engagement has taken place with officials from the Department of Trade, Industry and Competition (DTIC) and the International Trade Administration Commission (ITAC) on the guidelines relating to the processes and permits for importing certain fabrics under a rebate of customs duty. Truworths has also participated in other engagement on the establishment of manufacturing clusters and the prevention of illegal imports. |
Proposed debt relief legislation. |
Truworths has participated in engagement with the DTIC and the National Credit Regulator regarding the proposed debt relief legislation and in initial discussions regarding the development of regulations that will be required for the legislation to come into force. |
Revenue office audits and requests for information. |
The Group has engaged with revenue authorities in various countries of operation in relation to audits and requests for information in a constructive, transparent and compliant manner, and has sought to render tax payments and returns that are correctly determined and completed, in a timeous manner. |