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BKB Retail: Upgrading a Shop Near You

05 September 2023

When driving into almost any small, rural, town you are quickly swept away with that feeling of nostalgia for yesteryear. Faded signage adorns unknown shops, dusty and often rusted, vaguely familiar, comforting and yet also a tinge of sadness at the realisation that things are deteriorating. The crucial role the farming communities play in the local and even national economy, is not being matched by the investment into this, the heartland of our country. Urbanisation and the lure of “city life” is slowly draining the lifeblood out of our rural communities.

store front

As a proudly agricultural entity, with over 53 shops scattered across many of these impoverished rural areas. We hold a strong interest, coupled with a resolute determination, to contribute towards halting this decline in rural areas. Our commitment is unwavering in preserving the sustainability and allure of small-town rural South Africa. Rural South Africa is part of our DNA, our customers are our lifeblood, and the sustaining of the agricultural sector is essential to all!

Despite the economic hardships facing the agricultural industry, BKB has made the strategic decision to invest in our rural shops. This is done by upgrading and improving the overall shopping experience, doing our bit to keep small towns in South Africa vibrant and alive. The decision to upgrade a shop requires a multi-faceted approach. Which shops need to be upgraded first, what is the size or degree of the upgrade and what is the budget and timeframe for the upgrades. After that it is basic project management but before all that the generic objectives of any upgrade need to be decided upon and agreed to. After an in-depth study of the situation, we realised that any upgrade would have to ensure our customers, in those rural communities, could enjoy the same shopping experiences as they would in larger towns. So how do we go about this?

salesperson in store

We believe we can achieve this through the upgrading of the shops’ appearance, improving the layout design (which allows for improved in-store traffic flow and staff productivity), improved signage (both inside and outside the shops) and modern lighting. These changes make the shop more visually appealing, more engaging, encouraging customers to stay a while and explore, and ultimately to enhance the overall shopping experience.

Technology has also advanced in leaps and bounds and the installation or upgrading of technology, inventory and management systems allows us to streamline and improve our systems. We want to do all this and yet still be loyal to our heritage. Our shops should maintain a "personal" touch while embodying the quintessential "rural" experience. We aim for farmers to feel entirely at ease, as if stepping into their own homes. They should find our spaces inviting enough to relax on a couch, enjoy a cup of coffee, reconnect with old acquaintances, engage in friendly chats with branch managers (many of whom are locals familiar with customers by name), or simply unwind and put their feet up.

With many businesses and services withdrawing from rural areas, BKB took the opportunity to offer a wider range of products in our shops. The product range has been expanded to encompass a broader selection of necessities, including groceries, clothing, pet food and health products, as well as personal protective equipment. Moreover, our offerings now encompass hardware, toys, and even gift items.

packing shelves

BKB shops have evolved from being a gathering place for the working farmer of the community to cater for the needs of the entire town and especially our housewives and young adults who do occasionally need "retail therapy." We have expanded our clothing department and have added a few of the “essential” luxuries you might find in the bigger cities, such as footwear, leather accessories and alternative energy solutions.

Adapting to changing trends is essential to survival in the retail industry. We love our agricultural heritage, but we can’t stare ourselves blind to new trends and innovations. Online shopping is one of the largest growth areas in the retail industry. Despite our best intentions it is obvious that the limited space available in our rural area shops makes it impossible to stock all the products a customer could require. With this in mind, we launched bkbonline.co.za where many of the products that are not available in our brick-and-mortar shops are now available at the simple click of a button.

shelves stocked with products

After the launch of our online shop, we were surprised at the demand in urban areas, from customers looking for “nostalgia products” that remind them of their childhood or time on the farm. So don’t be surprised to find cute farm toys, wool & mohair products, a range of windmill décor and pure wool slippers amongst our traditional veterinary health, pet health, hardware, and irrigation products. By offering unique experiences such as personalised services, or in-store events, retailers can provide something that online shopping cannot replicate. Any upgraded shop should be able to accommodate in-store events or product demonstrations.

clothing display in store

Upgrading also presents, if required, an opportunity to improve the infrastructure and facilities around our shop. Power outages and other service disruptions pose challenges for us all. Outdated lighting or fixtures will be replaced to improve customer comfort, energy efficiency, and cost savings. In our retail shops, generators are in place where feasible. Additionally, when it makes economic and practical sense, we are implementing solar panels, batteries, and inverters. This guarantees our customers the convenience of visiting our shops, knowing that we are open for business despite any loadshedding schedule, with our petrol pumps fully functional. Additionally, we are also installing water tanks in various areas to capture rainwater for reuse.

We realise that staying competitive in the market is essential for any agri-retail success. Upgrading our shops allows us to stay relevant, keep ahead of competitors, and become the one stop shop and destination for our rural small-town customers. Creating the right environment can drive traffic, increase sales, and should deliver a memorable shopping experience.

shelves stocked with product

Upgrading is also time-consuming, leading to delays in reopening the shop and resuming full operations. The return on investment may also be uncertain, with no guarantees of significant returns. There is also a risk of over-renovation, investing excessively in unnecessary changes that may not generate proportional returns. Market response is another concern, as changes made during revamping may not resonate with the target market, leading to a lack of interest or negative feedback. Some customers may resist change or prefer the previous shop layout or design, which will impact their perception of the new “shopping experience”. Upgrading can also temporarily inconvenience employees, disrupting their routines and requiring adjustment. It is important to note that while upgrading can generate short-term excitement and increased sales, sustaining long-term growth requires continuous innovation and adaptation.

However, successful upgrading is dependent on a proper study of the existing situation, strategizing on the best course of action and the effective planning and execution of the actions required to achieve the set goals. Our retail department has a carefully thought-out plan for our rural retail shops, and we are putting those plans into action.

lady at counter and monitor

Equipped with skilled management, expert knowledge, specialized personnel, and capable staff, we are ready to enhance our shops. Stay tuned, as we will be arriving at a location near you soon!