Concord Retail Solutions - Enterprise Africa March 2024

CONCORD RETAIL SOLUTIONS

Resilient Concord Retains Positive Momentum

PRODUCTION: Jamie Waters

Enterprise Africa catches up with leading refrigeration and equipment supplier, Concord Retails Solutions to see how the innovative business has managed to maintain momentum of 2022 in a tough industry. Sales and Marketing Executive, Scott Messenger is proud of what has been achieved and excited about the next steps.

INDUSTRY FOCUS: RETAIL

//In November 2022, one of South Africa’s premier manufacturing businesses was celebrating a strong period, installing SA-made refrigeration units and commercial freezers in supermarkets and retail outlets around the country. Concord Retail Solutions, a division of Southey Holdings, was going from strength to strength and Sales and Marketing Executive, Scott Messenger told Enterprise Africa about rebranding the business from Concord Refrigeration and how the business was expanding, adding to its legacy product portfolio.

Today, Messenger is once again excited, buoyed by solid results, success in tough times, and an exciting new product that will help the company grow into new stores.

“The rebrand went very well and it was received by the market very nicely,” he tells Enterprise Africa. “We had a

great launch at one of the trade shows in Johannesburg – Frigair. We changed all of our branding and rebranded everything from stationary to clothing. We kept Concord – we did not change that at all. It was important for us to not play around with that because it has been around for over 50 years.”

The name Concord goes back to 1969 when a specialist need was realised for refrigeration products and services in the retail industry. Concord has grown and adapted to become an industry leader with unrivalled skills and enviable manufacturing capabilities. This, says Messenger, has helped the company to thrive even in the toughest of markets.

INCREDIBLE YEARS

“We had an incredible 2021 and an incredible 2022. However, at the end of 2022 the energy crisis in the country was exacerbated. It fell off a cliff and

// WE HAD AN INCREDIBLE 2021 AND AN INCREDIBLE 2022. HOWEVER, AT THE END OF 2022 THE ENERGY CRISIS IN THE COUNTRY WAS EXACERBATED

loadshedding went from a small issue to major problem. It went from the end of 2022, right through into Feb 2023. It put a halt on so many of our clients projects. Things came to a grinding stop with everyone focused on solar panels, batteries, and inverters. Unfortunately, our customers cannot operate on solar or batteries only – they need a stronger supply. So, instead of spending on upgrading their stores, they were pivoting to buy generators and diesel.”

Stage 6 load shedding was implemented from 7 December 2022 when 20,000MW of generating capacity was taken offline as a result of power station breakdowns.

Just one standard chiller display cabinet from Concord has electrical components using more than 810w, and stores can have multiple chillers, freezers, cold rooms, water systems, and more. It was a difficult time, and the impact from this continues.

But one big retailer was somewhat prepared and had a strategy in place to invest its way through the challenge. Shoprite posted sales growth of 16.9% for the financial year ending 2 July 2023, and this allowed for security over the rest of the calendar year and into 2024.

“Many other retailers were slow to react and they stopped spending, and that effected our ability to produce fridges and freezers for them,” says Messenger.

“It made a big difference,” he adds.

“By the end of June 2023, we still had an incredible year – the best in our history. But it would have been 40% higher. We

did very well but it felt like we ended on a downer because of what happened across the industry and country.”

While there is no end in sight for loadshedding, many companies – including Concord Retail Solutions – have taken measures to mitigate against the damage it can cause. Importing highly energy efficient freezers from Portugal, installing units with efficient fans, and even highly reliable LED lighting all makes a difference. At the same time, the company continues its exploration of alternative gases, including CO2, for use in refrigerant equipment.

TECH EXCELLENCE

Internally, new machinery and equipment is securing Concord’s position at the cutting edge of its

CONCORD RETAIL SOLUTIONS

sector. The company installed new Italian-made capital equipment in 2023, and has recently finalised the commissioning of a second piece, both of which will drive efficiency and safety.

“We have invested heavily in machinery. We installed and commissioned a brand-new laser cutting machine last year and we have just finished commissioning Africa’s biggest panel bender, both from Salvagnini. It’s very exciting for anyone in manufacturing and is a beautiful machine. It will enable us to manufacture faster and more accurately, and cheaper,” Messenger Beams.

Behind the fridges, freezers, and chillers, Concord Retail Solutions is busy with a new innovation for the business that hold major potential for clients. Most traditional units are

cooled by water or gas systems, or both. Typically, air is passed through a cooling system and warmth is reduced and then dissipated through exhaust systems. This is not always suitable, and not always efficient. Waterloop technology is a similar system, but uses compact evaporator and compressors.

“We had been trying for about two years to win a contract with this new technology,” explains Messenger.

“The fridge is linked to large water pipes and that pumps water out through a dry cooler and returns colder water. Shoprite wants ‘dual redundancy’ where the store – many of which are in rural areas – has the luxury of knowing that if something goes wrong, the machine can switch over automatically, keeping products cold, until a refrigeration contractor can

INDUSTRY FOCUS: RETAIL

get there to carry out maintenance.”

Waterloop technology has already been implemented by many retailers around the world and is preferred because of its smaller footprint, reduced energy consumption, comparatively speedy installation, and lower ongoing maintenance costs. Concord designs and manufactures some components for the system locally, and others in the market import from Poland or Austria. With proven installation teams, experienced on South African projects alongside South African retailers, this is an opportunity that Messenger has been keen to develop.

“We finally got our opportunity and we did our first store in Vryheid,” he says. “It’s a hot and humid climate and the store is in a new mall. We had not done a waterloop supermarket but it has been a real

success. We are so excited as it’s the best performing waterloop store in the country. It has given us the opportunity to get into that space which is important as it can double turnover, per supermarket, for us.”

FLAGSHIP PROVIDER

Going forward, Concord is expecting to grow further, adding to the successes that have been achieved since the reemergence of the market post Covid-19. Three highly successful years have been attained alongside rebranding and transforming culture internally. It has been tough going, but Concord’s people have driven innovation.

“Now, things are not as bad as they were a year ago but there is still a considerable amount of loadshedding. That translates into delayed projects and customers spending less in the store and more on generators and

diesel. We do think that in the near future, budgets will have caught up and most will have included this in their plans and spending. Because of that, we are optimistic,” Messenger relays.

“Pick n Pay, back under the leadership of Sean Summers, will certainly come back to the table with the right person at the helm. That will generate a lot of momentum and that is good for us. It will also stimulate their competitors and they are also our clients – the likes of SPAR and SUPERSPAR. Shoprite Checkers will obviously continue to grow and the space is exciting.”

He says that investment into people is also a catalyst for improvement. Adding team members and upskilling the existing base has helped the develop a shared mindset around quality and customer-centricity. “We now have some really strong people

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in the right positions,” he adds.

“It has been a mission changing the culture of Concord Refrigeration from a family-run business years ago to become part of a corporate as

// WE DO THINK THAT IN THE NEAR FUTURE, BUDGETS WILL HAVE CAUGHT UP AND MOST WILL HAVE INCLUDED THIS IN THEIR PLANS AND SPENDING. BECAUSE OF THAT, WE ARE OPTIMISTIC //

Concord Retail Solutions. It has taken a long time for a lot of the employees to accept as we have moved into the corporate space. The team we have now is a very strong and dynamic.”

Importantly, customers – and customer’s customers – remain delighted with the work of the company. Concord Retail Solutions continues to provide products and services that others simply cannot. And the reach of the business goes further than others can imagine. In 2022, Messenger was busy finalising an installation at a Checkers site. This, he says, is the perfect example of the work the company can do – world class.

“We worked on that flagship store in Cape Town and that was successful. We have since worked on two more flagship stores. I have worked in the

UK and travelled around through many countries, and I am confident saying that these Checkers supermarkets are, arguably, the best looking supermarkets in the world, and we are proud to have been a part of that.”

Being chosen as a key partner in these projects that elevate and pioneer across the retail space is what keeps Concord humming along nicely. While there are others in the market, and while the competition is strong, Concord has built its reputation around superior, robust design meeting service excellence, and this is exactly what South Africa’s retailers need.

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