Growth Strategies of South African Retail Chains

Abstract

In today’s retail world, volatile market dynamics have resulted in a changing retail landscape. Traditional growth models which were focused predominately on a geographic expansion strategy, no longer appear to be achieving long-term growth objectives or the return on investment expected. The purpose of this research was therefore to understand how South African retail chains are addressing their long-term growth strategies taking into account the above challenges and those specific to South Africa. The data for this research was collected using a semi-structured open-ended interview methodology and analysed using content analysis. The research confirmed that, in pursuit of long-term growth, South African retail chains are implementing both traditional and transformative (customer centric) growth strategies simultaneously to meet the current retail challenges. Recommendations included a strategic growth options matrix to assist retailers in the evaluation and choice of alternative growth strategies