Woolworths’ Susman lays facts on line to SA Govt – again. Where are other business leaders?

In SA, business leaders often act like Maltese Poodles than the Dobermans they should be when it comes to speaking out about some wayward thinking by the nation’s often economically naive Government. Sure, they yap and whine in the comfort of their own homes. But rarely bare any teeth in public where it can make a difference. It was business’s abdication in the mid and late 1990s which landed SA with appalling Labour Legislation, mostly cobbled together from idealistic First World policies abandoned at re-unification by the Germans. Ironically, politicians are keen for more engagement. I recall then Finance Minister Trevor Manuel, from a WEF platform, laying into business leadership as cowards because of their reluctance to enter the national debate. Manuel will definitely exclude the Woolworths chairman from that description. In my July interview with Woolworth’s CEO Ian Moir, we touched on the 2012 annual report where his chairman Simon Susman raised concerns at the growing gap, as he calls it, between business and “the increasingly vocal and more populous political thinking” in this country.  To which Moir reponded: “It’s not like Simon to be controversial, is it?  Simon is a great chairman.  He understands the Woolies business, the Woolies brand; he understand the South African marketplace, the politics of South Africa exceptionally well.” Quite. Well done Mr Susman. More strength to your elbow. – AH

simon sussman

By Simon Susman*

Globally, retailers were challenged by pedestrian economic growth. Within and because of this, the most successful international retail groups continue to expand their footprints into new markets. Both Australia, and increasingly SA, have seen this trend – Woolworths’ move into Africa is no different. Our growth into the future, therefore, is dependent on us being as good at retailing as the world’s best, for they are our competition.

On top of this, we are at the dawn of a mega shift in retailing. One as big as the shift from high street to mall over the past half century. Online shopping is changing everything for our customers. Country Road, is already looking at over A$50 million online sales this year. Our move into Africa, where governments have allowed private enterprise to develop internet access way beyond SA, will make significant use of this.

The Group generates over 23 000 direct jobs in South Africa and probably double that throughout our supply chain. We pay R1 billion in taxes and believe we make a material difference to the lives of millions in this country.

Like most businesses, we watch with deep concern the flow of restrictive, populist legislation being imposed on commerce in SA. Most of this, particularly on the restrictive labour and trade practice front, is materially impacting job and small business generation.

It is as if those in work are conspiring with government to keep the unemployed out of work and out of the markets.

It is only by growing private enterprise, large and small, that the fiscus’ coffers can be fed. It is business that creates the sustainable jobs and the new industries this country so badly needs. An ever more centralised government stranglehold on industry cannot do this.

Our future customers will only come from a more liberalised economy where government and business share a vision of growth – a strengthened, not a weakened, National Development Plan (NDP.)

There is now a fledgling engagement between the presidency and organised business – we are encouraged by this and strongly urge government to progress this bilateral engagement rapidly. Our country needs a fresh economic philosophy to ignite its true growth potential.

* Simon Susman (63) is the non-executive chairman of Woolworths. He has served the group for 30 years, half of them as CEO. He stepped down from executive duties in November 2010. This is an edited version of his Chairman’s report to shareholders in the 2013 annual report which has just been released. 

Download the PDF of the 2013 Woolworths annual report by clicking here. 

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