Smaller retailers who have made use of a consulting and training initiative launched by Old Mutual Properties in 11 shopping centres have boosted turnovers by significantly more than centre average growth rates over the last two years, according to a recent survey.

Brent Wiltshire, retail executive of Old Mutual Properties, says that in some cases, the increases have been as high as 20%.  He says the additional annual turnover being generated through the consulting and training initiative is estimated at R100 million.

The initiative forms part of a proprietary programme, known as Imprint, for retailers and their staff and service providers at shopping centres.

“Imprint grew out of the need to provide service excellence, grow skills in a sector where there has been no industry association to drive education, foster new entrepreneurs and to promote emerging retailers.”

The consulting service, provided by Barry Nesbitt of re:solutions, was first launched at Gateway Theatre of Shopping, Umhlanga, in November 2002 to support small traders meriting assistance through difficult periods, particularly in the early stages of a shopping centre’s life. From Gateway, which saw a 24% growth in turnover during 2004, the consultancy was extended nationally.

“Its thrust is on helping smaller retailers to improve their offerings according to the basics of retailing,” says Wiltshire. “More than 450 retailers in 11 shopping centres have now been assisted by re:solutions.

“The success of the initiative has helped shape the content of a series of training courses for smaller retailers registered with the Wholesale and Retail SETA in the SMME category and an advanced programme of seven two-day courses in retail skills for owners and managers of independent stores and national chains. “

The advanced programmes cover the key disciplines of positioning, product, people, presentation, promotions, performance and profitability.

Nesbitt says: “The decision by Old Mutual Properties to shift paradigms and to engage tenants in a mutually beneficial manner has in itself been revolutionary in the South African shopping industry. In addition to the substantially improved turnover levels, the strengthening of relationships between a landlord and tenants has been priceless.

“The scope of the advanced and Seta programmes far exceeds anything that has been attempted in the retail industry in South Africa and compares with those offered worldwide.  The advanced programmes have facilitated a substantial transfer of skills and knowledge from pedigreed retailers to tenants based on the specific areas of their businesses that need attention.  “

As part of the Imprint initiative, Old Mutual Properties have invited five young entrepreneurs to attend advanced programmes in each centre. The aim is to identify retailers from disadvantaged backgrounds who have potential and then to assist them with site locations, consultancy advice and sourcing of finance to get them started in shopping centres.
 
Old Mutual Properties are also pioneering a consulting service for restaurants.

Mike Rodel, manager of Gateway says the consulting initiative at Gateway, together with the structured training programmes and hard hitting tenant communication, have led to improvements in turnover, service levels, general enthusiasm and much improved relationships between centre management, store owners and staff working in the centre. 

“This success is only just the beginning.  Using the lessons we have learnt in the early phase of this project, we believe we can still achieve much greater things."

ends

ISSUED FOR:  Old Mutual Properties

BY: Michael Kerkhoff & Associates

INQUIRIES:  Brent Wiltshire 021-530-4586

                      Barry Nesbitt 083-290-5790

                      Mike Kerkhoff 021-424-5280