The extended agreement will benefit both parties by enabling efficient planning for new store or sales launches, thus ensuring better returns. "Shoprite relies on business efficiencies to give its consumers competitively priced shopping opportunities," says Melvin Chagonda, MD of Primedia @ Home.
"This three year contract allows us the space to plan in advance and iron out logistical problems – ultimately benefiting Shoprite and its clients."
In the last fiscal year, Primedia @ Home reports delivering over 15 000 tons of marketing material on behalf of Shoprite Checkers in these four provinces alone. This equates to three Boeing 747 cargo payloads being delivered every week. In addition to this volume, the promotion is environmentally friendly since the bulk of the promotional material is formed from recycled paper.
While the partnership allows Shoprite Checkers to maximise economies of scale in the distribution of marketing material, pamphlets, brochures, and samples, for Primedia @ Home the three-year contract will ensure long-term allocation of fleets, warehousing and human resources.
Says Chagonda, "To meet these demands we will rely on our branch and franchise network, thereby assisting local entrepreneurs in these areas to flourish – we hope the longer partnership will allow us to develop new independent BEE suppliers."
