Strategy performance

review

Our strategy is informed by our vision, mission and values, as defined in the Investment case and Our corporate profile. We remain committed to our strategic pillars of Customer, Leadership, Profit and Growth, which have remained unchanged since our 2015 financial year. Each pillar has specific strategic objectives and, following the formal annual strategy review by our Operating Board and subsequent review and ratification by our Supervisory Board, the strategic objectives were adjusted as indicated below from those reported in our 2016 integrated report.

STRATEGIC PILLAR

STRATEGIC OBJECTIVE – 2016

We will deliver superior customer experiences across our retail brands

We will offer our customers a range of compelling rewards

Alternative credit products will be investigated that will appeal to our changing customer base

STRATEGIC OBJECTIVE – 2017

We will deliver superior customer experiences across our retail brands

We will enhance customer insights through the intelligent use of data

STRATEGIC OBJECTIVE – 2016

We are committed to embedding a performance-based culture that will ensure that we attract and retain the best talent in the industry

STRATEGIC OBJECTIVE – 2017

We are committed to embedding a performance-based culture that will ensure that we attract, retain and develop the best talent in the industry

STRATEGIC OBJECTIVE – 2016

Our brands will optimise their supply chain capability, including their suppliers, buying processes and quick response

We will optimise the flow of goods from source to customer to enhance the customer experience

STRATEGIC OBJECTIVE – 2017

Our brands will optimise their supply chain capability, including their suppliers, buying processes and quick response

We will optimise the flow of goods from source to customer to enhance the customer experience

We will enhance return on capital employed (ROCE) by optimising profitability and capital management

STRATEGIC OBJECTIVE – 2016

We will be the leading lifestyle retailer in Africa whilst growing our international footprint

We will deliver an integrated, secure omnichannel customer experience across our various brands

STRATEGIC OBJECTIVE – 2017

We will be the leading lifestyle retailer in Africa whilst growing our international footprint

We will deliver an integrated, secure omnichannel customer experience across our various brands

The above changes were made to ensure that the strategic objectives are more focused in order to align with our changing operating context:

  • Advanced technology now provides the ability to have better insight into our customer to understand them and their needs and desires (“enhance customer insights”).
  • As we grow, we need to optimise our resources and be more cost-effective (“ROCE”).

The Operating and Supervisory Boards monitor the Group’s performance on these strategic objectives on an ongoing basis. To assist in the measurement of performance against strategy, all strategic objectives underpinning the strategic pillars are driven by members of our Operating Board.

TARGET SETTING

The medium-term targets set for each strategic objective are determined through our annual five-year Vision planning process. During this planning process, we prepare a view of our expected earnings for the next five financial years based on current market conditions, planned initiatives and expansion plans, which are driven by our strategy. The financial targets following in this strategy performance review are based on our latest Vision plan (Vision 2022).

HOW OUR SUSTAINABILITY STRATEGY SUPPORTS OUR BUSINESS STRATEGY

Click on the pillars for more information

CALEDON FACTORY

  • Construction was completed in December 2016
  • Manufacturing commenced early January 2017
  • Official launch of the newly expanded and revamped factory was 31 May 2017
  • The plant is one of the most modern of its kind in South Africa
  • Equipped with the latest sewing machine technology globally available
  • Purpose-built for quick response
  • Solar panels supply one-third of the plant’s energy requirements
  • All machinery are both energy and air-efficient
  • The above, together with rain water harvesting, reduced Prestige’s energy requirement and carbon footprint
  • A training school was established that ensured almost all of its current 314 employees, all previously unemployed women, acquired a national qualification in apparel manufacturing from the Department of Higher Education and Training
  • The expanded factory will increase employment to 500 employees and annual output to 2,5 million units over the next three years