Group strategy – Business model

Steinhoff remains focused on managing the long-term sustainability of the group’s businesses and business practices to maintain and grow the benefits provided to its stakeholders.

The integrated business model of sourcing and manufacturing products in low-cost locations and retailing them in developed markets has underpinned the group’s growth since its listing on the JSE Limited in 1998. The retail operations are positioned towards price-conscious (value) consumer segments, providing customers with affordable household goods products through the group’s vertically integrated supply chain.

       

Material issue

    SUSTAINABILITY
Increased and changing consumer demand drives the development
of responsible and sustainable products and services
 
  DIFFERENCIATING
FACTORS
STRATEGY STRATEGIC DRIVERS             CONTEXT OUTCOME
RETAIL DIVERSE GEOGRAPHIC
FOOTPRINT
GROW REVENUE
AND MARKET SHARE
Footprint expansion  

More than 2 321 stores

30 retail brands

In 20 countries Retail
Revenue                    R117.4bn
Cash generation   R21.3bn
Operating profit
before capital items
  R12.6bn
Operating margin   10.8%
Return on
property portfolio
  7.1% p.a.
  Continuous investment in stores  
MASS-MARKET APPEAL E-commerce  
MANUFACTURING,
SOURCING AND LOGISTICS
INTEGRATED
SUPPLY CHAIN
ENHANCE EFFICIENCIES

and

INCREASE MARGINS
Vertical integration of
supply chain
 

16 factories

Sourcing from 44 countries

Purchasing power in
excess of €4bn

manufacturing, sourcing and logistics
FLEXIBILITY AND BALANCE
IN MANUFACTURING
AND SOURCING
Leverage the group's
manufacturing, sourcing and
distribution capabilities
 
PROPERTIES PROPERTY OWNERSHIPS Maintain cost base and
improve margins
 

€3bn portfolio (at cost)

4 million m2 of property owned:
  82%   Retail*
  10%   Manufacturing
  8%   Warehousing

* Warehouse space attached to stores is included in retail

Properties
SUSTAINABLE BASE Continuous property investments  
       

Material issue

    SUSTAINABILITY
Ownership of properties protects sustainable long-term access to sought-after
industrial and retail locations. The property portfolio supports investment into
social and environmentally friendly infrastructure.