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A feminine approach at Engen Kempton Park - Supermarket.co.za

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Fore<strong>co</strong>urt storew<strong>at</strong>ch<br />

A <strong>feminine</strong> <strong>approach</strong><br />

<strong>at</strong> <strong>Engen</strong> <strong>Kempton</strong> <strong>Park</strong><br />

The site of the <strong>Engen</strong> Dealer of the Year in <strong>Kempton</strong> <strong>Park</strong> is all about personal rel<strong>at</strong>ionships with clients and being the go-to in the <strong>co</strong>mmunity.<br />

One of the very few women in the industry s<strong>co</strong>oped<br />

the <strong>Engen</strong> Dealer of the Year Award<br />

By Michel Mack<br />

A new challenge<br />

Back in 2007 when the former Trek site,<br />

subsequently rebranded as <strong>Engen</strong>, became<br />

available for purchase, Oliphant was looking<br />

for a new task after many years as a social<br />

worker. Coming from an entrepreneurial<br />

family, she decided to follow her sister’s<br />

footsteps and enter the fore<strong>co</strong>urt industry.<br />

She then paid regular visits to the site to<br />

observe whether it would provide a lucr<strong>at</strong>ive<br />

business opportunity.<br />

“I wanted to get a feel for the staff<br />

and how the site was frequented before<br />

I made my final decision. The staff was my<br />

utmost priority because they were the key<br />

to making this business successful. They<br />

were motiv<strong>at</strong>ed and the site definitely had<br />

a lot of potential. I therefore decided to go<br />

ahead with it,” says Oliphant. Shortly after<br />

her taking over, <strong>Engen</strong> refurbished the site<br />

into its new ‘on-the-go’ design <strong>co</strong>ncept,<br />

achieving a universal look and feel amongst<br />

its large network, <strong>co</strong>mprising 1 200 st<strong>at</strong>ions<br />

around the <strong>co</strong>untry.<br />

Excellent r<strong>at</strong>ings in customer<br />

service, facilities and<br />

present<strong>at</strong>ion, as well as strict<br />

health, safety, environment and<br />

quality standards brought the<br />

owner of the <strong>Engen</strong> Quick Shop<br />

in <strong>Kempton</strong> <strong>Park</strong> the honours<br />

of being awarded <strong>Engen</strong><br />

Dealer of the Year. Owner and<br />

former social worker, Thabang<br />

Oliphant takes a unique and<br />

successful <strong>approach</strong> in dealing<br />

with her staff, as well as in<br />

building rel<strong>at</strong>ionships with her<br />

customers and her <strong>co</strong>mmunity.<br />

Over<strong>co</strong>ming reserv<strong>at</strong>ions<br />

Oliphant’s major challenge was to make<br />

a success out of her business as a woman<br />

in a predominantly male industry. “Many<br />

customers had difficulties accepting th<strong>at</strong> a<br />

woman is now running this petrol st<strong>at</strong>ion<br />

and expected the service to deterior<strong>at</strong>e,”<br />

she says. She gained the respect of the<br />

<strong>co</strong>mmunity by keeping up high standards<br />

and secured a long-term customer base<br />

by building personal rel<strong>at</strong>ionships with her<br />

cus tomers. She knows wh<strong>at</strong> her regular<br />

cus tomers want to buy and gets their<br />

purchases ready before they even drive onto<br />

the fore<strong>co</strong>urt or walk into the store. She<br />

speaks English, Afrikaans and several African<br />

languages and is therefore able to address<br />

almost all in their home language.<br />

Supporting the <strong>co</strong>mmunity<br />

“My passion is to support my staff and the<br />

people in the <strong>co</strong>mmunity in reaching their<br />

dreams in life,” says Oliphant. If <strong>approach</strong>ed<br />

by either, she takes time to sit down with<br />

them and talk through their problems. If<br />

they are uncertain about their future, she<br />

enables them to <strong>at</strong>tend career <strong>co</strong>unselling<br />

<strong>at</strong> university in order to make the right<br />

career choice. She also assists illiter<strong>at</strong>e<br />

parents in bringing their kids through<br />

the formalities of school and university<br />

applic<strong>at</strong>ions. She equips her staff and<br />

wholesalebusiness Issue 3, 2012 27


Fore<strong>co</strong>urt storew<strong>at</strong>ch<br />

members of the <strong>co</strong>mmunity with wh<strong>at</strong><br />

they need to apply for jobs or studies th<strong>at</strong><br />

help them move closer to their dream jobs.<br />

Recently, a girl who struggled to finance her<br />

studies <strong>approach</strong>ed her asking for help. She<br />

then hired her temporarily to enable her to<br />

earn the money th<strong>at</strong> she needed.<br />

One of her staff members just finished<br />

his m<strong>at</strong>ric. “Sadly for him, being a petrol<br />

<strong>at</strong>tendant was the only job he was able to<br />

find. I invested a lot in him so th<strong>at</strong> he too<br />

can reach his potential. I hired him to give<br />

him the opportunity to gain experience and<br />

grow closer to wh<strong>at</strong> he wants to do in life,”<br />

she says.<br />

Cigarettes gener<strong>at</strong>e 20% of the turnover within<br />

the C-store. Their prices are kept just above the<br />

supermarket next door so th<strong>at</strong> the <strong>Engen</strong> will<br />

remain a viable altern<strong>at</strong>ive for customers.<br />

The C-store alone roughly gener<strong>at</strong>es R600 000<br />

turnover per month. The offering is still basic<br />

but will expand in the future to optimally c<strong>at</strong>er<br />

for all customers.<br />

The Snackzone offers customers <strong>co</strong>ffee, pies<br />

and <strong>co</strong>okies. Most items are sold on Sundays,<br />

while people wash their cars after church.<br />

Motiv<strong>at</strong>ed staff<br />

As a social worker <strong>at</strong> heart, Oliphant puts<br />

above average emphasis on the physical<br />

and mental well-being of her 28 staff<br />

members. Most of them <strong>co</strong>me from the<br />

nearby township of Tembisa. They receive<br />

financial incentives from her, as well as<br />

from <strong>Engen</strong> directly when targets are<br />

reached, helping them to stay motiv<strong>at</strong>ed.<br />

Additionally, Oliphant regularly tre<strong>at</strong>s them<br />

with cake or other small goodies to lighten<br />

the <strong>at</strong>mosphere. She works very closely<br />

with them, dispensing petrol and serving<br />

customers herself as well. “I don’t sit back<br />

when the fore<strong>co</strong>urt is busy but help where I<br />

am needed. This shows the staff th<strong>at</strong> there<br />

is no ‘us and them’, but only ‘us’. We can all<br />

do it and work together,” she says.<br />

In dealing with problems, she takes a very<br />

different <strong>approach</strong>. “As a social worker,<br />

I am <strong>co</strong>ncerned about the person. Of <strong>co</strong>urse<br />

the business is important but it is also very<br />

important to me th<strong>at</strong> my people are looked<br />

after well. If, for example, they have an<br />

important personal issue to sort out and<br />

need a day off or advice, they can <strong>co</strong>me to<br />

me, tell me their story and we will discuss it<br />

and find a solution,” she says.<br />

She also intervenes immedi<strong>at</strong>ely when<br />

fore<strong>co</strong>urt staff members have to deal with<br />

outraged customers after making a mistake,<br />

because she doesn’t want them to take<br />

the customer’s careless words personally<br />

or have a lasting neg<strong>at</strong>ive effect on them.<br />

“I always emphasise to the staff th<strong>at</strong> I am<br />

here to protect them and th<strong>at</strong> I am there for<br />

them. If they are faced with more than they<br />

can handle, it can break them permanently<br />

and I need to prevent th<strong>at</strong>,” says Oliphant.<br />

Most staff members enter the business<br />

untrained and receive training on-site<br />

from specially disp<strong>at</strong>ched <strong>Engen</strong> trainers<br />

and senior staff. Once the job-specific<br />

training and customer handling training<br />

is <strong>co</strong>mpleted, new employees shadow<br />

their supervisors until they deem them fit<br />

to work independently. The <strong>at</strong>mosphere<br />

amongst the staff is very positive and some<br />

have been working on the site for over<br />

20 years. “I always refer to my staff as a<br />

team. A shift doesn’t make the business<br />

successful, but a well-oiled team is the <strong>co</strong>re<br />

of success. It was therefore very important<br />

to me to mould them into a team and<br />

teach them to work together and look out<br />

for each other,” she says.<br />

Owner, Thabang Oliphant emphasises the<br />

importance of working closely with her staff.<br />

“We can all do it. We can work together.”<br />

Josephine has been working on the site for<br />

over 16 years. Most staff members stay for long<br />

periods of time due to the positive <strong>at</strong>mosphere<br />

on the fore<strong>co</strong>urt.<br />

Taking ownership<br />

Shrinkage is currently <strong>at</strong> 3.5% but used to<br />

be quite a significant problem in previous<br />

years. CCTV and armed response are<br />

available for increased security and stock is<br />

protected by a daily, weekly and bi-weekly<br />

stock <strong>co</strong>unt schedule. If any irregularities<br />

are dis<strong>co</strong>vered, the schedule is adjusted to<br />

quickly identify the source of shrinkage.<br />

For Oliphant, her staff is the most<br />

important asset in shrinkage <strong>co</strong>ntrol.<br />

“One time, I called them all in and explained<br />

to them th<strong>at</strong> the significant shrinkage <strong>at</strong> the<br />

time affects the amount of money<br />

I have for the business. If I have less money<br />

available, then less or no money is left for<br />

incentives and tre<strong>at</strong>s for the staff.<br />

28 wholesalebusiness Issue 3, 2012


28 staff members are employed <strong>at</strong> the site. Owner, Thabang Oliphant, emphasises<br />

th<strong>at</strong> looking after her staff is one of the most important aspects of the business.<br />

Store: <strong>Engen</strong><br />

Loc<strong>at</strong>ion: <strong>Kempton</strong> <strong>Park</strong><br />

Owner: Thabang Oliphant<br />

Staff <strong>co</strong>mplement: 28<br />

C-store turnover:<br />

R600 000 per month<br />

They needed to understand th<strong>at</strong> it<br />

affects them,” she explains. Afterwards,<br />

shrinkage decreased significantly and staff<br />

went out of their way to be part of the<br />

solution. When certain customers who<br />

were known to steal arrived <strong>at</strong> the store, all<br />

fore<strong>co</strong>urt staff would walk inside the store,<br />

demonstr<strong>at</strong>ing th<strong>at</strong> this person’s intentions<br />

were known.<br />

Free car washes are available to SAPS<br />

vehicles to increase police presence and<br />

establish visible security. The site has also<br />

be<strong>co</strong>me known as a place for security<br />

<strong>co</strong>mpany staff to <strong>co</strong>me to if they need hot<br />

w<strong>at</strong>er to make a cup of <strong>co</strong>ffee, for example.<br />

Together with the <strong>co</strong>mmunity policing<br />

forum (CPF), Oliphant also previously<br />

hosted an annual braai for police and<br />

security staff on N<strong>at</strong>ional Police Day.<br />

Convenient and <strong>co</strong>mpetitive<br />

The fore<strong>co</strong>urt offering is <strong>co</strong>mplete with<br />

50ppm diesel and a car wash loc<strong>at</strong>ed<br />

<strong>at</strong> the back of the site. Product offering<br />

within the <strong>co</strong>nvenience store (C-store) is<br />

currently focused on the basics with bread,<br />

chips, sweets, <strong>co</strong>okies, car products, basic<br />

medicines and <strong>co</strong>ld drinks – in line with<br />

<strong>Engen</strong>’s assortment requirements. <strong>Engen</strong><br />

laid out requirements for 80% of its fore<strong>co</strong>urt<br />

stores’ product assortment to ensure<br />

a <strong>co</strong>mpetitive range, and leaves it up to the<br />

store oper<strong>at</strong>or to fill the other 20% with<br />

products relevant to their target market.<br />

The store includes the Snackzone bakery,<br />

offering pies and <strong>co</strong>ffee to the customers.<br />

The owner is busy in negoti<strong>at</strong>ions with<br />

<strong>Engen</strong> to upgrade the bakery and make a<br />

wider array of products available through<br />

the <strong>Engen</strong> Corner Bakery <strong>co</strong>ncept.<br />

Oliphant’s site has a very mixed customer<br />

base with middle class residential customers<br />

and large numbers of passers-by from<br />

Tembisa, en-route from the nearby train<br />

st<strong>at</strong>ion to their workplaces. She included<br />

items like small polony rolls, <strong>at</strong>char, snuff<br />

tobac<strong>co</strong>, as well as R5 airtime vouchers,<br />

which are not available <strong>at</strong> the local<br />

supermarket. Th<strong>at</strong> way she ensures th<strong>at</strong> she<br />

c<strong>at</strong>ers for the l<strong>at</strong>ter customer base as well.<br />

“We are keeping our prices low in order to<br />

remain <strong>co</strong>mpetitive with the supermarket<br />

across the road. Most filling st<strong>at</strong>ions make<br />

the <strong>co</strong>nvenience of a 24-hour store an<br />

expensive service, but we decided against<br />

th<strong>at</strong>. Our cigarettes, for example, are only<br />

marginally more expensive than in the<br />

supermarket as we have slightly higher<br />

oper<strong>at</strong>ing <strong>co</strong>sts. This way our <strong>co</strong>nvenient<br />

store remains a viable altern<strong>at</strong>ive for the<br />

customers, who are rewarding these efforts,”<br />

says Oliphant.<br />

Convenience sells<br />

Roughly 300 000 litres of fuel are sold on<br />

the fore<strong>co</strong>urt every month with steadily<br />

rising figures. The C-store itself gener<strong>at</strong>es<br />

approxim<strong>at</strong>ely R600 000 per month.<br />

Bestselling items are cigarettes, ac<strong>co</strong>unting<br />

for 20% of the store’s turnover, as well<br />

as airtime and prepaid electricity, which<br />

together ac<strong>co</strong>unt for another 30% of the<br />

store’s turnover. A Lotto outlet is also<br />

available to customers. Cold drinks, energy<br />

drinks, cho<strong>co</strong>l<strong>at</strong>e and pop<strong>co</strong>rn are most<br />

popular within the grocery section.<br />

“The advantage for the customers here is<br />

not having to stand in long lines when they<br />

just quickly want to get a box of cigarettes<br />

or electricity on the way home from work.<br />

They are also not limited to opening hours<br />

of a supermarket, which makes the prepaid<br />

electricity, in particular, a vital asset to our<br />

store,” she says.<br />

The site c<strong>at</strong>ers for a wide range of customers.<br />

Middle class residents visit the site as often as<br />

passer-by traffic from the train st<strong>at</strong>ion nearby.<br />

Sometimes more unusual customers can be<br />

spotted as well.<br />

Growing further<br />

Going forward, Oliphant wants to include<br />

a fast food franchise into the site. “Many<br />

customers <strong>co</strong>me here on Sundays to have<br />

their cars washed after church and it would<br />

be gre<strong>at</strong> for them if they can just enjoy<br />

a nice breakfast as a family while we are<br />

taking care of their car,” she says. She also<br />

wants to expand the offering within the<br />

C-store to better c<strong>at</strong>er for the different<br />

needs of all her customers.<br />

She <strong>co</strong>ncludes: “In our business we are all<br />

about personal rel<strong>at</strong>ionships and helping our<br />

customers with wh<strong>at</strong> they need <strong>at</strong> wh<strong>at</strong>ever<br />

time of day. Being a mom myself certainly<br />

helps me understand the pressure many<br />

people are under. So when, for example,<br />

a mother is l<strong>at</strong>e dropping off her kids <strong>at</strong><br />

school, she can quickly refuel, drop her kids<br />

off and then <strong>co</strong>me back to pay. I also want<br />

the <strong>co</strong>mmunity to know th<strong>at</strong> this is a place<br />

to <strong>co</strong>me to when they need help.”<br />

wholesalebusiness Issue 3, 2012 29

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