After opening its 500th store, The Crazy Store will add more outlets next year with a possible entry into Zambia.
One of the largest privately owned retailers, which opened its first store in 1997, The Crazy Store sells a variety of items from party products to pet food and accessories and has a limited range of household items.
It has a presence in three countries outside South Africa — Namibia, Botswana and Eswatini. Its latest store was opened at Bayside Mall in Blaauwberg, Cape Town.
MD Kevin Lennett said while the company does not have a target for the number of stores it wants to open, it aims to be in many areas in South Africa and some neighbouring countries. “We have 21 [new stores] planned for next year. But I don’t believe you can set a target as to how many stores you need and by when.
“But what we do know is that there are lots of consumers out there looking for products we sell. Our aim is to grow by moving into many areas, and in places where we already have a presence we have been well received.”
“You’ll find us in small to big malls. We can pop up anywhere, so long as there’s a disposable income and demand for our products.”
On expansion outside South Africa, Lennett said: “We try to be in countries quite close to us from a border perspective, just because of logistics. So we want to be fairly close geographically as much as we can. But what I do know is within South Africa, there’s still so much scope for our stores to keep growing. So that’s where the priority lies.”
In recent years the company opened on average 50 stores a year, said Lennett, who describes The Crazy Store as a convenient outlet that caters for most occasions from themed parties, birthdays, Halloween and other necessities for schools and homes.
He said the store sizes and format allow consumers to do their shopping quickly. “So it’s a non-threatening environment, as I call it.”
With cash-strapped consumers prioritising essentials like food and transport, Lennett said while it has been tough for retailers The Crazy Store continues to grow sales and is able to internally fund its expansion.
“It’s been tough for retailers the last couple of years. We’re grateful we’ve been able to continue showing growth. We have seen customers thinking very carefully about what they purchase, and we’ve had to make sure that we adjust our model and our needs and our variety of products to meet those needs.”
Lennett said while he acknowledges that most of the products The Crazy Store sells are “a nice to have, rather than a need, consumers have not stopped buying. If it’s party items they just want to celebrate occasions in life.”
He said the popularity of items differs according to seasons, but “we do incredibly well in a lot of categories. So it might not necessarily be items, but categories. So throughout the year, you’ll find that the pet and toy departments are consistently busy. So those would be the departments that really do well. There are novelty items — a lot of fun, inexpensive novelty items that are always popular.”
We compete with a variety of retailers. There’s plenty of competition, including Chinese online platforms. Every food grocery store sells items that we sell. But we live very nicely next to each other
Lennett did not want to disclose the company’s turnover and profits nor provide details of shareholders, only revealing that the company was a family owned business. The Crazy Store, which employs 3,000 people, competes with a range of retailers including speciality outlets like pet and toy stores, independent and major food retailers. The Crazy store imports 75% of its products while the rest is sourced locally.
“We compete with a variety of retailers. There’s plenty of competition, including Chinese online platforms. Every food grocery store sells items that we sell. But we live very nicely next to each other,” he said.
According to Lennett every time there is a new competitor, “we take it incredibly seriously. We put together storyboards. We work out what they are doing and what they are offering. What are we doing that’s not as good as they are? By having competition open next door, we’ve got to make sure that our service is better, our offerings better, and in-store environments better. Our staff members are better.”
The company has no plans to list on the JSE. Lennett said over the years it has received numerous buyout offers from a range of interested parties including private equity companies and established retail companies. “There’s always been interest. It’s flattering, and we appreciate it. But the owners are just very happy to enjoy what they do and not looking to change anything.”
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