GROUP
STRATEGY
THE GROUP'S STRATEGIC OBJECTIVES ARE AIMED AT CREATING LONG-TERM SUSTAINABLE VALUE BY DELIVERING ON OUR VISION FOR OUR SHAREHOLDERS, CUSTOMERS AND EMPLOYEES AS OUTLINED IN OUR BUSINESS PHILOSOPHY
STRATEGIC OBJECTIVES
SHAREHOLDERSEnhance returns to shareholders through the efficient management of financial and capital resources, gearing, expense control and robust governance structures to ensure long-term growth
Conduct operations in a sustainable manner to ensure the viability of the Group's businesses, principally by remaining relevant to, and by meeting the needs of customers, addressing the interests of all other stakeholders and managing the impact of operations on the physical and natural environment
EMPLOYEESAttract, develop and retain talent while enhancing employee engagement and satisfaction levels by acknowledging and rewarding successful performance
Maintain a performance culture which recognises and rewards contribution and ensures employees are fairly rewarded for outcomes that complement the strategic objectives of the Group
CUSTOMERSTruworths | Address the lifestyle needs of customers through a curated massmarket offering of predominantly exclusive fashion brands, ensuring we maintain our aspirational better-end mainstream fashion positioning
Office | Address the lifestyle needs of customers with the latest shoe and sneaker styles from world-renowned brands, complemented by a unique range of made-to-order (MTO) fashion footwear
Operate an efficient supply chain to deliver optimal product variety, reduce fashion risk through agility, and improve our ability to distribute merchandise
Provide customers access to aspirational merchandise through responsible credit granting (Truworths only) and multiple payment options (Truworths and Office)
Create and maintain enticing and modern store environments through continual development of new store concepts and upgrading existing retail stores
Create a world-class omni-channel experience by enhancing our digital capability and creating a seamless in-store and online offering
THE GROUP STRIVES TO ACHIEVE ITS STRATEGIC OBJECTIVES THROUGH THE DEVELOPMENT AND SUCCESSFUL EXECUTION OF STRATEGIES WITHIN TRUWORTHS AND OFFICE
STRATEGIES
THESE STRATEGIES ARE UNDERPINNED BY SOUND FINANCIAL, INFORMATION AND OPERATING SYSTEMS, AS WELL AS PEOPLE AND GOVERNANCE PROCESSES. THE GROUP DELIVERS ON THESE STRATEGIES THROUGH SHORT-TERM ACTION PLANS AND PROJECTS WHICH ARE DEVELOPED AND IMPLEMENTED EACH YEAR, OUTLINED IN THE MATERIAL ISSUES, RISKS AND OPPORTUNITIES, CHIEF FINANCIAL OFFICER'S REPORT, TRUWORTHS OPERATIONAL REVIEW AND OFFICE OPERATIONAL REVIEW.
SHAREHOLDERSMaintain a robust balance sheet to reduce the risk posed by unfavourable market conditions with the aim of continuing to pay dividends irrespective of the environment
Buy back shares at earnings-accretive levels
Deploy a centralised management model characterised by clear board direction and strategy determination, a flat management structure, and an empowered and accountable management team
Maintain an efficient governance framework comprising relevant governance policies, structures and processes which contribute to improved operational decision making and corporate performance, while reducing the risk of failure
Build on the recent turnaround in the performance and profitability of Office
CUSTOMERSManage the risk of fashion by offering an extensive range of internationally inspired aspirational fashion of high quality, across a diversified brand portfolio
Introduce new fashion concepts and brands to address the lifestyle needs of customers
Target youthful and fashionable South African ladies, men and kids, with aspirational merchandise and brands for all occasions
Use a diversified range of local and offshore merchandise manufacturing suppliers and develop a vertically integrated internal apparel design capability
Maximise efficiencies in the supply chain by reducing lead times of both local and imported supplies and be first to market with the latest fashion merchandise
Enhance distribution facilities through the implementation of technology and processes to improve distribution functionality and merchandise allocation to stores
Offer accounts and lay-bys as an enabler of merchandise sales while enhancing customer relationship management to attract and retain customers
Supplement account facilities with additional payment options to attract new customers, expand loyalty programme membership and grow merchandise sales
Scientifically manage account risk through new account acquisition and account risk management systems while applying strict credit-granting criteria, with efficient collection strategies
Expand the store footprint through prudent trading space management
Remodel emporium and large stores along with new and expanded retail store concepts and brands
Grow the omni-channel presence through ongoing development of e-commerce capabilities
EMPLOYEESFoster a workplace culture of innovation and high performance through alignment with the Business Philosophy
Embrace transformation across the various elements of the broad-based black economic empowerment scorecard to improve opportunities for previously disadvantaged South Africans
CUSTOMERSMaintain and enhance relationships with key international footwear brands to entrench Office's positioning as a strategically important partner
Grow sales of own-brand footwear to materially increase revenue and improve gross margin
Manage inventory levels by promoting full-margin sales to minimise stock build-up, and free up working capital
Manage the store portfolio by capitalising on opportunities to selectively open new stores in strategic sites and exit loss-making stores
Enhance the omni-channel experience by modernising strategic, high-profile stores
Expand the e-commerce business as part of the overall omni-channel strategy to provide customers with a world-class store and digital experience
EMPLOYEESCreate a workplace that fosters a culture of innovation and high performance through alignment with the Business Philosophy
Build a team to drive the turnaround in Office’s performance
