November 5, 2003

By Vera von Lieres

Cape Town - The Crazy Store, the family discount variety store, had grown to 82 stores countrywide in the financial year to February from 44 stores three years ago.

Managing director Jon Els said the group had captured a niche in the fiercely competitive retail market.

"After a period of consolidating, the formula is now right. We are focusing on store roll-outs," he said yesterday.

The business has moved from a loss-making company three years ago to a point where it is growing turnover more than 30 percent a year.

When Els, who has an accounting background, took over in 2000, annual turnover was around the R50 million mark.

Projections for the financial year to February 2005 are that turnover will hit the R200 million mark.

More expansion on the horizon is expected to result in 100 stores in the next year and a half.

The strategy has been to focus on being a family store and to target country areas like Springbok, Uppington, Aliwal North and Newcastle. Once critical mass has been reached in small country towns, stores are set up in major cities, preferably near leading retailers such as Pick 'n Pay to take advantage of foot traffic.  

"We offer a range of homeware items as well a focus on the outdoor and the kiddies market, with the big drawing card being that we are price competitive. Shoppers pop in to pick up selected items where they know they will save before or after their big retail shop."

The Crazy Store, whose target income group is the mass middle market, recently changed its name from the The Crazy R10 Store to shed the image of "a junk store". This was accompanied by a large-scale store revamp programme.

Says Els:

"What we have now is an impulse store known for its value-for-money goods. The product mix is such that you never know what you might get. Most importantly, its a fun shopping experience."