CHECKERS
SHOPRITE HOLDINGS LTD
INTRODUCTION
STRATEGY
There are currently 158 Checkers supermarkets with an emphasis on specialist departments such as the bakery, meat market, cheese and delicatessen counter, and wine store. Over the past year the focus on convenience has seen a strong increase in prepared food while the fruit and vegetable departments were expanded.
HISTORY
The Shoprite Group acquired the ailing Checkers chain of 170 supermarkets in 1991 primarily to grow its market share, and to spread the geographical distribution of its stores nationally. Up to that point, the Shoprite Group was a Cape-based chain of some 75 supermarkets.
Further motivation to take over Checkers was to save the chain financially, and to also save the jobs of its thousands of employees. To achieve this, the two brands were merged regardless of the fact that Shoprite catered for the broad middle to lower consumer market, while Checkers targeted the middle to upper income groups. Checkers stores were integrated with Shoprite strategically by keeping the brand name Checkers for those stores that were financially viable and that were located in the corresponding target market. Checkers stores, which were more suitable to the Shoprite profile in terms of their location and customer base were converted to Shoprite stores and the non-viable ones were closed down.
Further motivation to take over Checkers was to save the chain financially, and to also save the jobs of its thousands of employees. To achieve this, the two brands were merged regardless of the fact that Shoprite catered for the broad middle to lower consumer market, while Checkers targeted the middle to upper income groups. Checkers stores were integrated with Shoprite strategically by keeping the brand name Checkers for those stores that were financially viable and that were located in the corresponding target market. Checkers stores, which were more suitable to the Shoprite profile in terms of their location and customer base were converted to Shoprite stores and the non-viable ones were closed down.