Khula Retail Business Plan › Section 8 › Operations Plan

8.1 Store Layout & Design

The 750 m² store will be configured around a customer-flow-optimised
layout that has been refined through two iterations of advisory input
from a former hypermarket store-design specialist. The layout reflects
established retail-design principles: high-traffic essentials at the
rear of the store to draw customers across the full footprint, fresh
produce as the welcoming first category, impulse and treat categories
along the till queue, and a defined deli/bakery destination zone
designed to be visible from the entrance.

Table 17. Store-layout zone allocation

8.2 Trading Hours & Staffing Roster

Khula Market will trade Monday to Saturday 06:30 to 21:00, and Sunday
07:00 to 19:00, providing 92 trading hours per week — meaningfully wider
than incumbents in the catchment (averaging 78 hours). The staffing
roster has been designed using a labour-modelling tool that maps
expected customer footfall (in 30-minute increments) to required
staffing across till, floor, fresh, and back-of-house functions.

Table 18. Year-1 staffing model

8.3 Supplier & Procurement Strategy

Procurement strategy is the single largest determinant of
independent-retailer profitability, and accordingly receives
disproportionate strategic attention in this Plan. Khula Retail will
operate a three-tier supplier architecture:

1. Buying group affiliation: The Company has secured in-principle
   agreement to join an established South African independent-retailer
   buying group, which aggregates the buying power of several hundred
   independent stores to negotiate national-account-equivalent terms with
   major FMCG manufacturers. This affiliation is forecast to deliver
   250–400 basis points of gross-margin lift versus direct standalone
   sourcing.
2. Direct manufacturer relationships: For categories where
   buying-group coverage is incomplete or where the Company seeks
   margin-enhancing exclusivities, direct relationships will be
   established. The team has already secured indicative supply terms from
   12 manufacturers across beverages, household goods and personal
   care.
3. Local fresh procurement: Fresh produce will be sourced directly
   from regional farmers’ markets and through a small panel of accredited
   fresh-produce wholesalers, with daily ordering and same-day delivery.
   This approach trades modest cost premium for significant freshness,
   reduced waste and a credible “local” narrative.

8.4 Inventory Management

Inventory will be managed through a cloud-based ERP and POS platform
purpose-built for South African independent retailers. The platform
integrates real-time sales, automated re-order points, supplier portals
and shrinkage reporting. Operating disciplines:

• Cycle-counting: 5 SKUs counted daily by floor staff; full-store
  stock-take every 6 weeks.
• Automated re-order: Min/Max levels set per SKU; system generates
  draft purchase orders for manager approval.
• Slow-mover review: Monthly review of any SKU below 4x annual
  turnover; mark-down or de-listing protocol.
• Shrinkage tracking: Daily till variance reporting; weekly
  shrinkage analysis at category level.
• Target stock-turn: 12x by end of Year 2, climbing to 13.5x by
  Year 5 — meaningfully ahead of independent-retailer benchmark of
  8–10x.

8.5 Technology Stack

Table 19. Technology stack and indicative costs

8.6 Quality, Health, Safety & Environment

The Company’s QHSE framework is structured around full compliance
with the Occupational Health and Safety Act, Foodstuffs, Cosmetics and
Disinfectants Act, and the local municipality’s by-laws governing food
retail. Specific commitments include: monthly pest-control service
contract; quarterly food-safety audit by an accredited third party;
staff food-handling certificates renewed annually; clearly-displayed
cold-chain temperature logs in chilled and frozen sections; and a
documented incident-reporting protocol covering customer injury, product
recall, theft and fire.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Khula Retail (Pty) Ltd.