A tribute to Raymond Ackerman
...the passion of a family business
The strength, sustainability and benefits of family businesses are
very underrated in South Africa. You can’t beat the passion of
a family business. Pikwik is the way the Ackerman family retains
control of the long term vision and sustainability of
Pick n Pay and we feel the structure is still very
appropriate for the company’s growth and success into
the future.
BIG DECISIONS THAT HAVE CHANGED HISTORY
...franchising
Pick n Pay’s franchising
strategy could prove to be
a winning formula for the
food retailer in its effort to
penetrate mass markets,
particularly the Soweto
market where its competitors
have operated for years.
Traditionally one would only
find a Pick n Pay store in the high income areas but
today the Company boasts
many supermarkets in the
townships, largely due to
the conversion of its under
performing Score stores into
Pick n Pay franchise stores.
Doyen of supermarket retailing in South Africa,
Raymond Ackerman, has stood down as Chairman just
short of his 80th birthday. But family control of the
Group will remain. His position has been handed to
his son, Gareth.
2010 ...
Click on the image to enlarge
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A great man!
Raymond Ackerman is synonymous with Pick n Pay and has been with the Company for 43 years, introducing to South Africa the concept of a powerful consumer orientation as the overriding, first law of store management.
The focus was ruthless, and in the process Ackerman was forced into scraps with suppliers, staff and Government, yet his single-mindedness in providing value goods presented in an attractive way forced other players to up their game – massively.
The overall result was not only better supermarkets in SA, which compare easily with some of the best in the world, but also an impeccable record of long-term growth for the Pick n Pay Group. The Company noted that someone who invested R100 when Pick n Pay listed in 1968, that investment would be worth nearly R600 000 today.
Under Raymond
Ackerman’s auspices,
Pick n Pay grew from
four small stores in
Cape Town, to 794
stores today. The number
of employees increased
from 175 to 49 000. The
Company has produced
20-year share price
compound growth as at
February 2010 of 14.8%,
and grew at 14.2%
annually compounded
over the past decade.
Pikwik, the holding
company, grew at 14.3%
compounded over the
period and at 15.4% over
the past decade. |
The distinguishing
feature of the Company
was its family ownership
and control, which
Ackerman only partially
conceded with the
appointment of a
separate CEO in 1999.
But it will be Gareth
Ackerman who takes
over from his father
as Chairman of the
Company.
And neither will Raymond
be entirely absent. He will
stay on as an advisor to
the Company performing
an ambassadorial role
and will continue to be based at the Company’s
head office in Cape Town.
“Being family-controlled
has also ensured that the
values introduced in 1967
have carried through over
43 years. Importantly, this
will not change,” he said.
Reflecting on his career, Ackerman
said: “I have no regrets at all. It has
been a lifetime experience.”
Asked if he was at all tired, he said:
“A little bit. We now have operations
in nine African countries, and there
is always some crisis. It’s like being
on duty 24/7.”
“I’m looking forward to playing a bit
more golf - I’ve always loved golf -
and travelling with my wife. We’re
going to go away immediately for a
couple of months when I retire, so
these guys will have to find their
feet immediately.”
Asked about the recipe for his
success, he said: “I was once told
that the aim of any retailer is to
‘maximise consumer sovereignty’. ”
“If you go out and say: ‘I want to
make money’, then you won’t.”
“Instead, you have to have a passion
to fight like mad for your consumer
- in much the same way that a doctor
would fight like mad for his patient.”
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