Kit Kat Group's support of stokvels shows dividends
Issued by Gillian Gamsy International Communications - Dec 20th 2018, 08:36
For the third consecutive year, bulk retailer The Kit Kat Group’s long-standing association with stokvels is showing strong growth.
Current trading patterns show that 2018 looks set to follow the 30% growth experienced by the group in 2017 in stokvel trading alone, which was 20% up from 2016 figures.
Riaz Gani, the group’s CEO, says stokvels have always been a very important partner to the Kit Kat group. “A combination of value, extremely competitive pricing and trust has contributed to the loyalty from hundreds of stokvels which also bank throughout the year with the group. This loyalty has been built over several years, allowing us to maintain great relationships to make their money work even harder for them.”
“There are three key factors which have the strongest influence on why stokvel groups support us and why they stay with us: banking throughout the year at any of our stores, the implementation of secure systems for money collections and prices which are up to 15% cheaper than at other bulk retailers."
"We know that consumers are under pressure and are feeling the brunt of the constant increase in the cost of living so giving the best possible service to stokvels is paramount. We ensure we have adequate stock levels based on their needs and historical spending patterns to allow them to harness the power of collective bulk buying, economically and hassle-free.”
Current estimates from the National Stokvel Association of South Africa are that the South African stokvel economy is worth R49 billion and that there are over 800 000 stokvel groups representing 11,5 million individuals in what has become known as the “hidden economy” providing a financial safety net for millions of South Africans.
Gani says the stokvel groups, ranging in size from three to close to 200 members, support both the group’s cash-and-carry and express stores in trade which peaks from mid-November to end-December.
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