Khula Retail Business Plan › Section 3 › Products, Services & Value Proposition

3.1 Merchandise Architecture

Khula Market will operate a deliberately curated assortment of
approximately 4 800 SKUs (stock-keeping units) at launch, expanding to 6
200 SKUs by the end of Year 2 as customer data informs range refinement.
The assortment has been engineered to balance three priorities: (i)
attachment to fast-moving daily-need categories that drive footfall;
(ii) inclusion of higher-margin discretionary categories that lift
average basket value; and (iii) exclusion of slow-moving,
capital-trapping ranges that erode shelf productivity.

The Company’s category architecture is informed by extensive analysis
of Stats SA retail trade data, supplier sell-through reports and
benchmarking against comparable independent and chain operators.
Categories are weighted to mirror the spending behaviour of the target
catchment rather than national averages, resulting in a slightly higher
allocation to fresh produce, bakery and household basics than would be
typical of an upmarket store.

3.1.1 Category Mix and Performance Targets

Table 6. Category architecture, margin and turnover targets —
Year 1

Figure 13.

The chart above illustrates the balanced portfolio Khula Market will
operate. High-turnover, lower-margin categories (fresh produce, bakery)
generate footfall and habitual visits; medium-turnover, higher-margin
categories (personal care, household goods) provide the gross-profit
ballast that sustains the operating model.

3.2 Service Layer

Khula Market is conceived not merely as a transactional point of sale
but as a community-anchored retail experience. The following services
will be embedded into the customer offer from Day 1 of trade, with
additional services phased in as scale permits.

• Cash-back at the till (up to R1 500 per transaction) via
  integrated card terminals — addressing a genuine community pain point in
  catchments with limited ATM density.
• Bill-payment integration (electricity pre-paid tokens, DSTV
  airtime, municipal account top-ups) through a partnership with a leading
  aggregator — driving incremental footfall.
• Free Wi-Fi for customers (15 minutes per loyalty-card scan) —
  both a service and a data-capture mechanism.
• WhatsApp ordering for top-100 SKUs with same-day delivery within
  a 5 km radius — launching in Month 6.
• Click-and-collect e-commerce channel — launching in Month 16,
  leveraging proven cloud-based platform.
• Loyalty programme (“Khula Plus”) with personalised offers based
  on purchase history — launching in Month 14.
• Quarterly community engagement initiatives (school sponsorships,
  food drives) reinforcing the local-relevance positioning.

3.3 Value Proposition by Customer Segment

The Khula Market value proposition has been articulated separately
for each of the three primary customer segments identified in Section 5,
ensuring that strategic decisions on assortment, pricing, layout and
communication are calibrated to genuine customer needs rather than
generic retail rhetoric.

Table 7. Segmented value-proposition framework

3.4 Pricing Architecture

Khula Market will operate a disciplined three-tier pricing
architecture, calibrated weekly using competitor price-check data
gathered by store staff and a contracted price-intelligence service. The
architecture is designed to deliver clear value perception while
protecting overall basket margin.

Table 8. Three-tier pricing architecture

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