By Larry Claasen
AFRICA’S largest fast-moving consumer goods (FMCG) retailer, Shoprite’s commitment to building emerging businesses has seen it provide billions in financial and direct investment to them.
Its CredX division, for example, saw it provide R10-billion in working capital funding to 110 suppliers during the 2024 financial year. The group said this facility enabled suppliers to obtain crucial working capital funding at the lowest industry rates.
For the same period, 20-million was invested in Enterprise and Supplier Development (ESD) through Shoprite Next Capital and Shoprite Next Capital supported 64 Small, Medium, and Micro Enterprises (SMMEs).
In addition, Shoprite grew its procurement spend on black-owned businesses by 7,8%, with its spending on black women-owned suppliers rising 8,5% to R18,3-billion.
The retailer’s private label range Homegrown programme was also supportive of local suppliers, with it sourcing 100% of its products from South Africa and 10% of the range sourced from SMMEs that are already suppliers to the group. In the last financial year, sales in the range were up 187%. To date, the group has procured R9-million and created 36 jobs by collaborating with SMMEs on this programme.”
Shoprite’s billion-rand investment: How to become a Shoprite supplier
The support Shoprite has offered has seen some businesses go from modest operations to having a national footprint.
Maneli Pets, for example, went from supplying five Checkers stores in the Western Cape in 2021 to 200 stores within less than a year. It now supplies the chain nationwide.
Maneli Pets founder, and Harvard-trained entrepreneur, Nhlanhla Dlamini noted that the retailer was particularly helpful when it came to helping it deal with the energy crisis.
“It became clear we needed a long-term sustainable power solution. We started installing solar panels in 2018 but required funding to conclude the process. Banks are not open to those types of requests, particularly for SMMEs. We were finally able to complete the solar power system with financial assistance from the Shoprite Group’s small business development division, Shoprite Next Capital, which enabled us to install the required inverter and battery.”
How to get into Shoprite’s supply chain: Essential steps for success
Though Shoprite offers a lot of support to prospective suppliers, getting to its supply chain is not guaranteed and it says they should consider the following steps before applying, which are:
Key requirements on how to become a Shoprite supplier
Stand out from the competition – it is looking for innovative, quality, affordable and unique products that make a difference in a customer’s life. Suppliers with a strong unique selling proposition – whether through distinct products, diverse variants or flavours or creative packaging.
Develop a strong business plan – A well-structured business plan should outline clear growth strategies, market positioning, and financial projections. Retailers look for suppliers who demonstrate long-term viability and scalability.
Master cash flow management – Cash flow is the lifeblood of any business. While it may seem like a simple concept, it often proves more complex in daily operations. Mastering cash flow management is key to paving the way for long-term business success.
Craft a compelling pitch – Confidence in your business and products is essential when engaging with major retailers. A well-prepared pitch that highlights your brand’s strengths and potential benefits to Shoprite increases your chances of securing a partnership.
Be retail-ready – Businesses must ensure their products meet industry standards and regulatory requirements. Food suppliers, for example, must be food safety compliant. Shoprite provides guidance on achieving compliance where necessary.
