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STAKEHOLDER ENGAGEMENT

2

CUSTOMERS

Account and cash customers in South Africa and in the rest of Africa

3

EMPLOYEES

All full-time and flexi-time employees

More about our stakeholders

Youthful, fashionable consumers

2.5 million active account customers

2.0 million non-account TruRoyalty and iDream loyalty programme members

More about our stakeholders

11 563 employees

73% female; 27% male

93% black; 7% white (in South Africa)

Refer to the Human capital report and Social and Environmental report for further information

Engagement issues in 2017

  • Fashion appeal
  • Product quality
  • Customer service and experience
  • Merchandise pricing

Engagement issues in 2017

  • Opportunities for advancement and career progression
  • Consistent and equitable rewards
  • Effective communication from senior management
  • Training and skills development
  • Financial performance of the business, business strategy and trading outlook
  • Policies and procedures

Addressing engagement issues in 2017

  • Focused on well-established merchandise strategy to provide fashion that is youthful and fashionable but not ‘fringe fashion’
  • Ensured fashion is aligned with international trends, but with the South African customer in mind
  • Focused on using excellent quality fabrics and detailed styling to bring added value and differentiation to the range
  • In-store customer interaction
  • Electronic and social media communication, including targeted e-mail communication, SMS, fashion blog, Facebook, Twitter and Instagram
  • Advertising and promotions
  • Monthly account customer billing and marketing communications
  • Engagement with account and loyalty customers by the call centre to assess customer satisfaction
  • Customer focus groups

Addressing engagement issues in 2017

  • CEO Talk
  • Employee roadshows, results presentations and in-store broadcasts
  • Electronic staff communications
  • Employee magazine
  • Employment equity forums




4

SUPPLIERS

Local and international suppliers of merchandise and other goods and services

5

REGULATORS

Government departments, regulatory bodies and local authorities in all countries of operation

More about our stakeholders

Diversified base of many local and foreign merchandise suppliers

45% of clothing produced in South Africa

65% of merchandise imported, mainly from China, India, Mauritius and Madagascar

More about our stakeholders

National Credit Regulator (NCR), SA Revenue Service, government departments including Department of Trade and Industry and Department of Labour, and regulatory authorities outside South Africa

Engagement issues in 2017

  • Supplier lead times
  • Security of supply
  • Supplier performance
  • Ethical procurement standards
  • Compliance with health and safety standards
  • Fair and transparent pricing

Engagement issues in 2017

  • Legislative and regulatory compliance
  • Tax compliance and being a responsible taxpayer in all jurisdictions
  • Submission of statutory returns
  • Participation in industry associations

Addressing engagement issues in 2017

  • Audits of supplier manufacturing facilities
  • Supplier scorecard to measure key supplier performance
  • Truworths code of conduct incorporated in all supplier agreements
  • Web-based portal to enhance communications with suppliers

Addressing engagement issues in 2017

  • Together with two other major listed retailers, instituted legal action against the NCR and the Minister of Trade and Industry in 2016 to have the affordability regulations reviewed.
    The matter was heard in August 2017 with judgment pending.
  • Submission of quarterly NCR statistical returns
  • Formal and informal engagement with revenue authorities on tax compliance and industry matters
  • Submission of returns and payment of taxes by relevant due dates
  • Responding to tax queries within required deadlines
  • Filed employment equity progress reports with Department of Labour
  • Co-operated with Department of Labour’s store and regional office inspections