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New look for neighbourhood store - Supermarket.co.za

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Fore<strong>co</strong>urt <strong>store</strong>watch<br />

<strong>New</strong> <strong>look</strong> <strong>for</strong><br />

<strong>neighbourhood</strong> <strong>store</strong><br />

Recently revamped Engen Go Go Convenience Centre is now<br />

even better able to cater <strong>for</strong> its regulars in Reservoir Hills, Durban<br />

By Laura Durham<br />

Engen Go Go Convenience Centre<br />

now provides a new take on the old<br />

school <strong>co</strong>ncept of a <strong>co</strong>rner <strong>store</strong><br />

thanks to state-of-the-art fixtures<br />

and the Quick Shop’s new <strong>look</strong>.<br />

This, <strong>co</strong>upled with management’s<br />

determination to offer customers<br />

the best prices on essentials is<br />

sure to guarantee more loyalty<br />

in the affluent <strong>neighbourhood</strong> of<br />

Reservoir Hills.<br />

Always evolving<br />

Engen Go Go Convenience Centre was<br />

originally built as a Mobil service station<br />

with a motor spares shop adjacent to the<br />

<strong>for</strong>e<strong>co</strong>urt and motor vehicle workshop in<br />

the basement. About 15 years ago, the<br />

24-hour service station <strong>co</strong>nvenience <strong>store</strong><br />

evolution in South Africa trans<strong>for</strong>med the<br />

spares shop to an Engen Quick Shop<br />

24-hour <strong>co</strong>nvenience <strong>store</strong> (C-<strong>store</strong>).<br />

Competitive pricing and<br />

award-winning customer<br />

service make Go Go<br />

Convenience Centre an<br />

essential stop on the way<br />

out of affluent Durban<br />

suburb, Reservoir Hills.<br />

Store: Engen Go Go Convenience<br />

Centre<br />

Location: Reservoir Hills, Durban<br />

Total C-<strong>store</strong> trading area: 68m 2<br />

Staff <strong>co</strong>mplement:: 22<br />

Opening hours: 24<br />

Transactions: 3 100 per month<br />

The site is located on Mountbatten Drive<br />

and is the only service station on the way<br />

out of the affluent suburb of Reservoir Hills,<br />

Durban, if you’re heading towards the CBD,<br />

North or South Coast of KwaZulu-Natal.<br />

Family business<br />

The Randeree family used to be the<br />

proprietors of Brilliant House tobac<strong>co</strong>nists<br />

& news agents in Grey Street in the Durban<br />

CBD since the 1930’s. In 1992, <strong>store</strong> had to<br />

close due to lack of manpower when one of<br />

the partners passed away.<br />

In 2002, Junaid Randeree was appointed<br />

the franchisee at Engen Go Go Convenience<br />

Centre. “I now apply the same values and<br />

customer service levels I learned during<br />

the weekends and school holidays while<br />

working in the family business to my daily<br />

life at Engen Go Go,” he <strong>co</strong>mments.<br />

Space challenge<br />

Over the years, Randeree en<strong>co</strong>untered many<br />

challenges in terms of the offering at Engen<br />

Go Go. The site is relatively small so he has<br />

to ensure that what space there is, is put to<br />

the most profitable use.<br />

Customers <strong>co</strong>mplained that the old<br />

Quick Shop layout had the daily essentials<br />

spread at different <strong>co</strong>rners of the <strong>store</strong>,<br />

making a quick visit not nearly as quick and<br />

wholesalebusiness Issue 5, 2012 27


Fore<strong>co</strong>urt <strong>store</strong>watch<br />

Engen’s Reinvigorate<br />

Programme normally<br />

includes the installation of<br />

a new Corner Bakery, but<br />

it was impossible in the<br />

68m 2 Quick Shop. Junaid<br />

Randeree there<strong>for</strong>e decided<br />

to focus on his <strong>co</strong>re<br />

business – daily essentials<br />

<strong>co</strong>nvenient as they might like. Lighting<br />

in-<strong>store</strong> was poor with natural daylight<br />

blocked by the awning and low canopy. The<br />

fixtures and fittings were also aged and the<br />

entire C-<strong>store</strong> <strong>look</strong>ed tired. It was time <strong>for</strong><br />

a change.<br />

Revamped and ready<br />

<strong>for</strong> business<br />

Engen briefed the project managers to<br />

get the site up to the specifications and<br />

over<strong>co</strong>me all the issues to make the site<br />

as customer friendly as possible. Engen’s<br />

Reinvigorate Programme normally includes<br />

the installation of a new Corner Bakery but<br />

it was impossible to install one in the 68m 2<br />

Quick Shop.<br />

Randeree has there<strong>for</strong>e decided to focus<br />

on his <strong>co</strong>re business – daily essentials – in a<br />

modern space that has been retrofitted to<br />

provide <strong>co</strong>nvenience and a quick shopping<br />

experience. Bread, milk, newspapers and<br />

cigarettes are now within one area near the<br />

cashier with easy access to chips and <strong>co</strong>ld<br />

drinks through the extra<br />

wide cho<strong>co</strong>late and sweet aisles. The impulse<br />

ice cream freezers are at the entrance with<br />

the non-<strong>co</strong>re grocery and personal care<br />

range kept to a bare minimum.<br />

“Rolling stock takes assist in pinpointing<br />

areas where shrinkage is an issue and<br />

remedial steps are taken to reduce this,”<br />

says Randeree. CCTV cameras re<strong>co</strong>rd all<br />

movement on the site and transactions at<br />

the till. There is also a 24-hour guard on<br />

duty in the C-<strong>store</strong>.<br />

Specialised reflective fluorescent lighting<br />

fittings and halogen spotlights on the<br />

special focal areas of the <strong>store</strong> have given<br />

the <strong>store</strong> a totally new <strong>look</strong>. Jarrah wood<br />

panels, grey <strong>store</strong> shelving and stainless<br />

steel pay points with touch screen point-ofsale<br />

systems <strong>co</strong>mplete the new image.<br />

Jarrah wood panels, grey <strong>store</strong> shelving and stainless steel pay points with touch screen<br />

point-of-sale systems <strong>co</strong>mplete the new image of Engen Quick Shops at the site.<br />

Pictured above at the 31 August relaunch of Go Go Convenience Centre, from left to right:<br />

Moulana Patel, Lenny Chetty (KZN retail sales manager), Junaid and Ayesha Randeree (dealers)<br />

and Tshidi Modisenyane, network manager.<br />

An in-<strong>store</strong> ATM adds more <strong>co</strong>nvenience to the Quick Shop’s offering, enabling customers to top<br />

up their wallets as they top up their baskets.<br />

28 wholesalebusiness Issue 5, 2012


MOVING GOODS<br />

EFFICIENTLY<br />

from Warehouse<br />

to Till Point<br />

Cape Gate manufactures a wide range of quality<br />

materials handling and shopping trolleys designed<br />

to move stock with maximum efficiency from the<br />

distribution centre to the <strong>store</strong>, from the <strong>store</strong> to the<br />

shop floor, and finally from the shelf to the till point.<br />

A <strong>co</strong>mplete range that meets the needs of today’s<br />

retailer from bulk handling units to 15 different<br />

shopping trolleys that are specifically designed to<br />

meet particular <strong>store</strong> profiles.<br />

Materials<br />

Handling<br />

Promotions work very well to en<strong>co</strong>urage extra spend and dealer, Junaid Randeree<br />

plans on using social media to draw back old customers to the new <strong>look</strong> <strong>store</strong>.<br />

In 2010/2011, the site won the Engen award <strong>for</strong> best service. Team building through cycling<br />

and personal growth and development are important to staff and dealer at Go Go Convenience<br />

Centre.<br />

The <strong>for</strong>e<strong>co</strong>urt was also fitted with stateof-the-art<br />

tanks, pumps and equipment.<br />

Serving trucks used to always be a challenge<br />

but the new raised <strong>for</strong>e<strong>co</strong>urt canopy ensures<br />

that trucks can drive in without any issues.<br />

Convenience is still key<br />

Randeree says the C-<strong>store</strong> is very popular<br />

with motorists stopping on their way to and<br />

from home to pick up their daily essentials.<br />

He says the peak periods are between 6.30<br />

– 9.30am and 5 – 8.30pm.<br />

Residents from the nearby duplexes and<br />

flats also often visit the site. Top selling<br />

items are bread, cigarettes, buddy <strong>co</strong>ld<br />

drinks and Red Bull. Airtime and prepaid<br />

electricity are sold to provide maximum<br />

<strong>co</strong>nvenience to customers. “Airtime sells<br />

well but it <strong>co</strong>ntributes very little towards<br />

the profitability of the business due to<br />

extremely low margins,” he says. Lotto is<br />

not offered as it causes <strong>co</strong>ngestion in the<br />

parking lot and C-<strong>store</strong> when the Lotto<br />

queue builds up in peak periods.<br />

Catapult CGSR002<br />

HEAD OFFICE - CAPE TOWN:<br />

Tel: +27 (21) 937 7123<br />

e-mail: ctsales@capegate.<strong>co</strong>.<strong>za</strong><br />

DURBAN: Tel: +27 (31) 709 2670<br />

PORT ELIZABETH: Tel: +27 (41) 486 2538<br />

BLOEMFONTEIN: Tel: +27 (51) 435 2081<br />

JOHANNESBURG: Tel: +27 (11) 483 8541/2<br />

GEORGE: Tel: +27 (44) 874 3736/7<br />

Shopping<br />

Trolleys<br />

from<br />

90l to 235l<br />

designs<br />

Flexi-Shopper<br />

<strong>co</strong>mpact<br />

shopper with<br />

three baskets<br />

wholesalebusiness Issue 5, 2012 29


Fore<strong>co</strong>urt <strong>store</strong>watch<br />

“The shortage of parking space and tight<br />

<strong>for</strong>e<strong>co</strong>urt <strong>co</strong>nfiguration <strong>co</strong>uld result in<br />

customers driving off if they are in a hurry<br />

and no parking space is available,” he says.<br />

Premium price challenge<br />

“Customers are prepared to pay between<br />

10-20% extra <strong>for</strong> the 24-hour <strong>co</strong>nvenience<br />

of shopping but I always try to keep prices<br />

reasonable in my C-<strong>store</strong>,” <strong>co</strong>mments<br />

Randeree.<br />

To ensure that suppliers don’t deliver<br />

short-dated goods, expiry dates of all goods<br />

are re<strong>co</strong>rded on delivery notes.<br />

Margins are generally lean and bank<br />

charges and other expenses have to be<br />

negotiated and scrutinised <strong>for</strong> overcharges<br />

“to ensure that we get the best deal to<br />

sustain and add to the profitability of the<br />

enterprise”.<br />

Randeree says he often negotiates and<br />

shops around <strong>for</strong> the best deal on all the<br />

known value items (KVIs) in the C-<strong>store</strong><br />

so that he is able to offer customers the<br />

best possible deal. “My customers are also<br />

extremely price sensitive and this helps keep<br />

me on my toes in negotiating the best deal<br />

with my suppliers <strong>for</strong> all my Quick Shop<br />

purchases.”<br />

Promotions also work well to en<strong>co</strong>urage<br />

extra spend. Randeree says he uses print<br />

media and boards on the <strong>for</strong>e<strong>co</strong>urt to<br />

advertise the in-<strong>store</strong> specials. ‘Buy two get<br />

one free’ promotions are extremely popular<br />

with customers.<br />

“We have a marketing plan to recapture<br />

market share lost to opposition while<br />

we were closed <strong>for</strong> the three months of<br />

renovations. We are also planning to use<br />

social media <strong>for</strong> our in-<strong>store</strong> promotions.”<br />

This is in addition to the quarterly<br />

promotions that apply to all Engen Quick<br />

Shops.<br />

Staff investment<br />

Randeree says the site is very involved with<br />

Engen and the My School Programme. “We<br />

also <strong>co</strong>ntribute from our CSI budget towards<br />

various projects in the <strong>co</strong>mmunity and<br />

Engen promises to match our <strong>co</strong>ntribution<br />

towards certain projects.”<br />

He says staff turnover is minimal and<br />

most of the training is done on-site. “Only<br />

specialised fire fighting and first aid training<br />

Go Go Convenience Centre’s <strong>co</strong>re business is daily essentials,<br />

which are now <strong>co</strong>nveniently located right near the till.<br />

Specialised reflective fluorescent lighting fittings and halogen spotlights<br />

on the special focal areas of the <strong>store</strong> have given the <strong>store</strong> a totally new <strong>look</strong>.<br />

is carried out by external service providers,”<br />

he adds.<br />

“Team members are en<strong>co</strong>uraged to<br />

study and progress their lives and it makes<br />

me extremely proud that some previous<br />

employees gone on to realise their dreams,”<br />

says Randeree.<br />

In 2010/2011, the site won the Engen<br />

award <strong>for</strong> best service and staff members<br />

were rewarded with tickets to watch a FIFA<br />

World Cup soccer match. They also received<br />

bicycles and full cycling kit from Engen and<br />

participated in the Engen Dynamic Cycle<br />

Challenge in 2010 and 2011. Randeree adds<br />

that management and staff participating in<br />

such races is very good <strong>for</strong> team building.<br />

“Management is hands-on and all staff<br />

have access to me on an almost daily basis.<br />

Team leaders assist in delegating daily<br />

duties and ensuring that service levels to<br />

customers are of the highest level.”<br />

Competitive <strong>co</strong>mmunity<br />

Randeree says <strong>co</strong>mpetition is tough in the<br />

area with two 24-hour service stations with<br />

C-<strong>store</strong>s within a 1km radius and a shopping<br />

mall with major <strong>store</strong>s trading until 8pm.<br />

“However, our <strong>co</strong>mpetitive pricing,<br />

award-winning customer service levels both<br />

in-<strong>store</strong> and on the <strong>for</strong>e<strong>co</strong>urt, as well as the<br />

new reinvigorated Engen <strong>look</strong> sets this site<br />

apart from the opposition,” he <strong>co</strong>ncludes.<br />

30 wholesalebusiness Issue 5, 2012

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