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Company > Steinhoff Africa Retail: Business Model, SWOT Analysis, and Competitors 2023

Steinhoff Africa Retail: Business Model, SWOT Analysis, and Competitors 2023

Published: Jan 28, 2023

Inside This Article


    In this blog article, we will delve into Steinhoff Africa Retail (STAR), examining its business model, conducting a SWOT analysis, and exploring its competitors in the year 2023. STAR, a prominent retail company operating across Africa, has established itself as a key player in the industry. By analyzing its business model, we aim to gain insights into its strategies and operations. Additionally, conducting a SWOT analysis will shed light on STAR's strengths, weaknesses, opportunities, and threats in the current market. Lastly, we will identify its competitors to understand the competitive landscape in 2023.

    What You Will Learn:

    • Who owns Steinhoff Africa Retail and the significance of its ownership structure.
    • The mission statement of Steinhoff Africa Retail and how it guides its operations.
    • How Steinhoff Africa Retail generates revenue and the key sources of its income.
    • An in-depth explanation of the Steinhoff Africa Retail Business Model Canvas and its components.
    • The main competitors of Steinhoff Africa Retail and their impact on the company's market position.
    • A comprehensive SWOT analysis of Steinhoff Africa Retail, highlighting its strengths, weaknesses, opportunities, and threats.

    Who owns Steinhoff Africa Retail?

    Background on Steinhoff Africa Retail

    Before delving into the ownership of Steinhoff Africa Retail, it is important to understand the company's background. Steinhoff Africa Retail (STAR) is a leading African retail group that operates in several countries across the continent. It was established in 2017 when Steinhoff International Holdings, a global retail holding company, spun off its African operations.

    Steinhoff International Holdings

    Steinhoff International Holdings is a multinational retail conglomerate based in South Africa. It was founded in 1964 and has since grown to become one of the largest retail companies globally. The company operates a diverse portfolio of retail brands, including household names like Conforama, Pepco, and Mattress Firm.

    The Steinhoff Scandal

    In December 2017, Steinhoff International Holdings was hit by a major accounting scandal that sent shockwaves through the financial world. The company's share price plummeted, and it was revealed that there were significant irregularities in its financial statements. As a result, several top executives were implicated, and the company's reputation was severely damaged.

    Separation of Steinhoff Africa Retail

    In an effort to isolate the African operations from the scandal and protect its value, Steinhoff International Holdings decided to separate its African assets and create a separate entity - Steinhoff Africa Retail. This move was aimed at safeguarding the African business, which was considered to be profitable and had a strong market presence.

    Ownership Structure of Steinhoff Africa Retail

    As of the most recent information available, Steinhoff Africa Retail is majority-owned by Steinhoff International Holdings. The exact ownership percentage is not publicly disclosed, but it is believed that Steinhoff International Holdings holds a substantial stake in the company. Other stakeholders in Steinhoff Africa Retail include institutional investors and retail shareholders.

    Implications for the Future

    The ownership structure of Steinhoff Africa Retail has raised concerns among investors and analysts. The company's association with the Steinhoff scandal has resulted in a loss of trust and credibility. As a result, there have been calls for greater transparency and accountability in the ownership and governance of the company.

    In conclusion, Steinhoff Africa Retail is currently majority-owned by its parent company, Steinhoff International Holdings. The separation from the Steinhoff scandal was an attempt to protect the African operations' value. However, the ownership structure and the scandal's implications have created uncertainty about the future of the company.

    What is the mission statement of Steinhoff Africa Retail?

    The Mission Statement of Steinhoff Africa Retail

    Steinhoff Africa Retail (STAR) is a leading retail company in Africa, operating across various sectors including furniture, household goods, and apparel. The company's mission statement reflects its commitment to delivering value and quality to its customers, while also driving sustainable growth and profitability.

    The mission statement of Steinhoff Africa Retail can be summarized as follows:

    "To enhance the lives of our customers by providing affordable, high-quality products and exceptional customer service, while creating sustainable value for our shareholders and contributing to the development of the communities we operate in."

    This mission statement encapsulates the core objectives and values that guide STAR's operations. Let's explore each element in more detail:

    1. Enhancing the lives of customers: STAR aims to improve the lives of its customers by offering products that are not only affordable but also of high quality. By understanding and meeting the diverse needs of its customers, the company strives to enhance their overall experience and satisfaction.

    2. Providing exceptional customer service: Recognizing the importance of excellent customer service, STAR places a strong emphasis on ensuring that customers receive the utmost attention and care. The company endeavors to build lasting relationships with its customers, going above and beyond to exceed their expectations.

    3. Creating sustainable value for shareholders: As a publicly traded company, STAR is committed to generating sustainable growth and profitability for its shareholders. By continuously improving operational efficiency, exploring new market opportunities, and optimizing its business model, the company aims to deliver long-term value to its investors.

    4. Contributing to community development: STAR recognizes its responsibility as a corporate citizen and strives to make a positive impact on the communities in which it operates. Through various corporate social responsibility initiatives, the company supports education, healthcare, and environmental sustainability, among other causes, to foster community development and empowerment.

    Overall, the mission statement of Steinhoff Africa Retail reflects its dedication to being a customer-centric, financially successful, and socially responsible organization. By aligning its actions with this mission, STAR aims to become a trusted retail leader in Africa, providing value and making a meaningful difference in the lives of its customers and communities.

    How does Steinhoff Africa Retail make money?

    Retail Sales

    One of the primary ways Steinhoff Africa Retail generates revenue is through retail sales. As a leading African retail group, it operates various well-known brands such as Pep, Ackermans, and Incredible Connection. These brands offer a wide range of products including clothing, home essentials, electronics, and more. Steinhoff Africa Retail's extensive network of stores across the continent allows it to reach a vast customer base, driving sales and contributing to its revenue stream.

    Financial Services

    In addition to retail sales, Steinhoff Africa Retail also makes money through its financial services division. The company provides a range of financial products and services to its customers, including credit facilities and insurance options. By offering these services, Steinhoff Africa Retail not only enhances the shopping experience for its customers but also generates additional revenue through interest charges and insurance premiums.

    Manufacturing and Sourcing

    Another source of revenue for Steinhoff Africa Retail is its manufacturing and sourcing operations. The company has a strong presence in the manufacturing sector, producing a variety of products that are sold in its retail stores. By manufacturing its own goods, Steinhoff Africa Retail can control costs, ensure product quality, and capture a larger portion of the value chain.

    Furthermore, the company strategically sources products from suppliers worldwide to offer a diverse range of merchandise to its customers. Through efficient sourcing strategies, Steinhoff Africa Retail can negotiate favorable terms and pricing, optimizing its profit margins.

    Property Investments

    Steinhoff Africa Retail also generates income through its property investments. The company owns and operates a significant number of properties, including retail stores and distribution centers. By leasing these properties to its various retail brands, Steinhoff Africa Retail earns rental income, which contributes to its overall revenue.

    Additionally, the company strategically invests in real estate and property development projects, aiming to maximize returns and capitalize on the growing demand for commercial spaces across Africa. These property investments form an essential part of Steinhoff Africa Retail's revenue diversification strategy.


    Steinhoff Africa Retail's revenue streams are diversified across various sectors, including retail sales, financial services, manufacturing and sourcing, and property investments. This diversified approach allows the company to capture value at different stages of the value chain, ensuring a steady income flow and contributing to its overall profitability. With its strong retail brands, extensive network, and strategic investments, Steinhoff Africa Retail continues to thrive in the African market, making money through its diverse business operations.

    Steinhoff Africa Retail Business Model Canvas Explained

    What is the Business Model Canvas?

    The Business Model Canvas is a strategic management tool that helps organizations describe, design, and analyze their business models. It provides a visual representation of the various components that make up a business model and helps in understanding how these elements interact with each other.

    Overview of Steinhoff Africa Retail (STAR)

    Steinhoff Africa Retail (STAR) is a leading African retail company that operates a diverse portfolio of well-known brands across various sectors. STAR's business model is centered around creating value for its customers, shareholders, and other stakeholders.

    Key Components of STAR's Business Model Canvas

    1. Customer Segments: STAR serves a wide range of customer segments, including the mass market, middle-income consumers, and higher-end customers. The company tailors its offerings to meet the needs and preferences of each segment.

    2. Value Proposition: STAR's value proposition lies in offering quality products at competitive prices. The company focuses on providing a wide range of products, ensuring convenience, and delivering exceptional customer service.

    3. Channels: STAR utilizes multiple channels to reach its customers. This includes physical stores, e-commerce platforms, and mobile applications. The company continually invests in enhancing its digital capabilities to improve the customer experience.

    4. Customer Relationships: STAR aims to build strong and lasting relationships with its customers. The company achieves this through personalized interactions, loyalty programs, and excellent after-sales service.

    5. Revenue Streams: STAR generates revenue through the sale of various products across its brands. Additionally, the company generates income from services like credit and financial services, which complement its core retail operations.

    6. Key Activities: The key activities of STAR include sourcing and procurement, inventory management, marketing and promotion, store operations, and customer service. The company focuses on operational efficiency and cost optimization to drive profitability.

    7. Key Resources: STAR's key resources include its extensive store network, logistics and distribution capabilities, strong supplier relationships, and a skilled workforce. The company leverages these resources to meet customer demands and maintain a competitive edge.

    8. Key Partnerships: STAR collaborates with various partners to enhance its business model. This includes suppliers, financial institutions, technology providers, and marketing agencies. The company seeks strategic partnerships to leverage expertise, expand its product offerings, and improve operational efficiency.

    9. Cost Structure: STAR strives to maintain a lean cost structure while ensuring operational excellence. The company focuses on cost optimization across its value chain, including procurement, logistics, and store operations.

    10. Key Metrics: STAR measures its performance using key metrics such as revenue growth, customer satisfaction, market share, and profitability. The company regularly analyzes these metrics to make data-driven decisions and drive continuous improvement.


    By understanding Steinhoff Africa Retail's business model canvas, we can see how the company aligns its resources, activities, and partnerships to deliver value to its customers and stakeholders. The Business Model Canvas provides a holistic view of STAR's operations and serves as a valuable tool for strategic planning and decision-making.

    Which companies are the competitors of Steinhoff Africa Retail?


    Steinhoff Africa Retail (STAR) is one of the largest retail holding companies in Africa, operating a wide range of well-known brands. However, it faces competition from several strong players in the retail industry. In this section, we will explore some of the major competitors of Steinhoff Africa Retail.

    1. Shoprite Holdings

    Shoprite Holdings is a leading retail group in South Africa and has a significant presence across the African continent. With over 2,800 stores, Shoprite is known for its extensive product range, competitive pricing, and strong brand reputation. The company operates supermarkets, hypermarkets, and other retail formats, offering a wide variety of products to consumers. Shoprite's strong market presence and customer loyalty make it a formidable competitor for Steinhoff Africa Retail.

    2. Pick n Pay Stores

    Pick n Pay Stores is another prominent retail group in South Africa, with a history dating back to 1967. The company operates a variety of retail formats, including supermarkets, hypermarkets, and convenience stores, offering a comprehensive range of products to customers. Pick n Pay is known for its focus on customer service, value for money, and high-quality products. With its strong brand reputation and widespread store network, Pick n Pay poses a significant competition to Steinhoff Africa Retail.

    3. Woolworths Holdings

    Woolworths Holdings is a South African-based retail company that operates across various segments, including food, clothing, beauty, and home products. The company is known for its premium positioning, high-quality products, and emphasis on sustainability. Woolworths has a loyal customer base and offers a differentiated shopping experience, making it a formidable competitor for Steinhoff Africa Retail.

    4. Massmart Holdings

    Massmart Holdings is a leading South African retail group that operates several well-known brands, including Game, Makro, and Builders Warehouse. The company focuses on offering a wide range of products at competitive prices, catering to both retail and wholesale customers. With its extensive store network and diverse product offering, Massmart Holdings competes directly with Steinhoff Africa Retail in various retail segments.

    5. Spar Group

    Spar Group is a global retail and wholesale company that operates in over 48 countries, including several African countries. In South Africa, Spar is a major retail player, offering a comprehensive range of products through its various store formats. The company focuses on delivering convenience, value, and quality to its customers. Spar's strong presence and competitive pricing make it a significant competitor for Steinhoff Africa Retail.


    Steinhoff Africa Retail faces stiff competition from several established retail companies in South Africa and across the continent. Shoprite Holdings, Pick n Pay Stores, Woolworths Holdings, Massmart Holdings, and Spar Group are some of the major competitors that challenge Steinhoff's market share and strive to attract customers with their unique value propositions. These competitors continually push the boundaries of innovation, customer service, and product offerings, making the retail industry highly competitive in Africa.

    Steinhoff Africa Retail SWOT Analysis


    • Strong brand portfolio: Steinhoff Africa Retail (STAR) has a diverse portfolio of well-known brands across various sectors including furniture, household goods, clothing, and electronics. This allows the company to cater to a wide range of customer preferences and increase its market share.

    • Extensive retail footprint: STAR has an extensive retail footprint across Africa, with a presence in over 15 countries. This widespread presence provides the company with a competitive advantage, enabling it to reach a large customer base and capitalize on the diverse African consumer market.

    • Efficient supply chain: The company has established a robust and efficient supply chain network, allowing it to deliver products to its stores promptly. This efficiency helps STAR maintain optimal inventory levels and reduce costs, ultimately improving its profitability.


    • Over-reliance on one geographic region: STAR's operations are heavily concentrated in South Africa, which accounts for a significant portion of its revenue. This over-reliance on a single geographic region exposes the company to risks associated with economic instability, regulatory changes, and market saturation within South Africa.

    • Debt burden: The company has a high level of debt, primarily due to its acquisition of various businesses. This debt burden poses a risk to STAR's financial stability and ability to invest in growth opportunities. Additionally, servicing the debt requires a significant portion of the company's cash flow, limiting its flexibility to respond to market challenges.

    • Limited online presence: Compared to its competitors, STAR has a relatively limited online presence. In an increasingly digital world, this lack of e-commerce capabilities puts the company at a disadvantage, as it fails to tap into the growing online retail market and meet changing consumer preferences.


    • Expansion into untapped African markets: STAR has the opportunity to expand its operations into untapped African markets. These emerging markets offer significant growth potential, as rising incomes and urbanization drive consumer demand. By strategically entering these markets, the company can increase its customer base and diversify its revenue streams.

    • E-commerce growth: The African e-commerce market is experiencing rapid growth, presenting an opportunity for STAR to capitalize on this trend. By investing in its online presence and developing a robust e-commerce platform, the company can reach a wider audience, improve customer convenience, and drive sales.

    • Vertical integration: STAR can explore opportunities for vertical integration within its supply chain. By acquiring or partnering with suppliers or manufacturers, the company can gain greater control over its supply chain, reduce costs, and improve product quality.


    • Economic uncertainties: The African market is susceptible to economic uncertainties, including currency fluctuations, political instability, and regulatory changes. These factors can negatively impact consumer spending and overall business performance, posing a threat to STAR's operations.

    • Intense competition: The retail industry in Africa is highly competitive, with both local and international players vying for market share. This intense competition can lead to price wars, eroding profit margins and hindering STAR's growth. Additionally, new entrants and disruptive technologies can further intensify competition and challenge the company's market position.

    • Changing consumer preferences: Consumer preferences are constantly evolving, influenced by factors such as fashion trends, technology advancements, and sustainability concerns. Failure to adapt to these changing preferences can result in decreased customer loyalty and reduced sales for STAR. Therefore, the company must stay abreast of consumer trends and continuously innovate its product offerings to remain relevant in the market.

    Key Takeaways

    • Steinhoff Africa Retail is owned by Steinhoff International Holdings, a global retail company based in South Africa.
    • The mission statement of Steinhoff Africa Retail is to become the leading retailer in Africa, offering a wide range of quality products at affordable prices.
    • Steinhoff Africa Retail generates revenue through its retail operations, which include a portfolio of well-known brands and stores across various industries such as furniture, household goods, and clothing.
    • The Steinhoff Africa Retail Business Model Canvas highlights key aspects of the company's operations, including customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, and key partnerships.
    • Some of the competitors of Steinhoff Africa Retail in the African retail market include Shoprite Holdings, Massmart Holdings, and Mr Price Group.
    • In a SWOT analysis, Steinhoff Africa Retail's strengths include its extensive retail network and strong brand portfolio, while its weaknesses may include financial challenges faced by its parent company. Opportunities for the company lie in the growing African retail market, but it also faces threats such as increasing competition and economic uncertainties.


    In conclusion, Steinhoff Africa Retail is a prominent retail company that operates in South Africa and is owned by Steinhoff International Holdings. Its mission statement is to provide quality products and excellent service to its customers, while also creating value for its shareholders. The company generates revenue through various channels, including the sale of home goods, furniture, and clothing.

    By analyzing Steinhoff Africa Retail's business model canvas, we can see that it focuses on key activities such as sourcing products, establishing partnerships, and managing its retail stores effectively. This strategy has contributed to its success in the market.

    Steinhoff Africa Retail faces competition from several companies in the retail industry, including Pepkor Holdings, Woolworths Holdings, and Mr Price Group. These competitors push Steinhoff Africa Retail to continually innovate and improve its offerings to stay ahead in the market.

    A SWOT analysis of Steinhoff Africa Retail reveals its strengths in having a diverse product portfolio and a strong presence in the South African market. However, it also faces weaknesses in terms of its reputation due to past controversies. Opportunities for growth lie in expanding its online presence and entering new markets. Threats include economic instability and changing consumer preferences.

    Overall, Steinhoff Africa Retail is a resilient company with a clear mission and a solid business model. With proper strategic planning and continuous adaptation to market trends, it has the potential to maintain its position as a leading retailer in South Africa.

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