Sustainability and local sourcing: PEP’s South African commitment

In 2019, the South African Retail Clothing, Textile, Footwear, and Leather (R-CTFL) sectors embarked on a transformative journey known as the ‘Retail Master Plan’. This ambitious initiative aims to strengthen the foundation of the industry by fostering collaboration between retailers, manufacturers (textiles, clothing, and footwear), cotton producers, organised labour and the government. A key player in this endeavour is PEP, a leading retailer with a deep commitment to local sourcing and community development.

PEP’s local sourcing and SME support

PEP, a participant in the Retail Master Plan, stands out for its dedication to South Africa’s economic growth and the empowerment of local small and medium-sized enterprises (SMEs). A central element of PEP’s contribution is its commitment to sourcing 47% of schoolwear locally

Benefits to PEP

PEP’s commitment to local sourcing brings several benefits to the brand and the broader industry.

• Reduced exposure to large manufacturers: By actively sourcing a significant portion of its products locally, PEP reduces its reliance on large manufacturing concerns that serve all retailers in South Africa. This strategic move provides PEP with more control over its supply chain and reduces potential vulnerabilities.
• Geographical ring-fenced capacity: The commitment to local sourcing allows PEP to establish a geographical ring-fenced capacity for the exclusive use of the Pepkor group of companies. This ensures a stable and secure supply of merchandise for stores.

• Contribution to enterprise development targets: PEP’s involvement plays a pivotal role in advancing broad-based black economic empowerment (B-BBEE) and, specifically, enterprise development. This is a significant step towards achieving greater economic inclusion and equity.

• Support for SMEs and community development: PEP’s focus on local sourcing provides vital support to SMEs) within the R-CTFL sectors. These businesses receive PEP’s financial assistance, guidance and expertise, fostering their growth and sustainability.

• Job creation: PEP’s commitment to local sourcing has led to the creation of 30 new jobs for unskilled workers in the Swartland Malmesbury area. This employment boost not only improves the lives of individuals but also contributes to the economic vitality of the community.

Partnership with Swartland Izihlangu
A notable facet of PEP’s involvement in the Retail Master Plan is its partnership with Swartland Izihlangu, a B-BBEE Level 1 contributor based in Malmesbury, Western Cape. This partnership is rooted in a shared commitment to long-term sustainability and development within the R-CTFL sectors. PEP has committed to a five-year specified financial investment dedicated to working capital and equipment as part of this collaboration.

Through this partnership, PEP and Swartland Izihlangu exemplify the power of collaboration in driving positive change within the R-CTFL sectors. The commitment to local sourcing, community development and B-BBEE enterprise development showcases the potential for transformation within the industry and sets an inspiring example for other stakeholders to follow.

The Retail Master Plan, with PEP’s active participation, serves as an example of the potential in the R-CTFL sectors when businesses, government and communities collaborate.