Former boss of Pick ‘n Pay acknowledged for customer-first principle

Business Entrepreneur Raymond Ackerman was awarded the Free Market Foundation‘s (FMF) seventh Luminary Award at a business park in Bryanston on 18 August. Ackerman received it for his role in changing business tendencies in the retailing industry in the country while he established the Pick ‘n Pay chain stores. It is believed that he led a change from profit-motivated, expensive businesses to cheap, ethical stores that put customers first. Ackerman thanked the FMF for the award, and discussed what can be learned from his career.

Ackerman’s father Gus founded the Ackermans chain, and encouraged Raymond to study commerce. He did so, and like all his fellow students his only goal was to make money. But Professor William Hutt taught Ackerman in 1948 the importance of helping the community and satisfying the customers.

During that time, his father gave Ackerman numerous jobs. When the Ackermans chain was sold to Greatermans in 1946, Ackerman was advised by his father to join them. Ackerman did so, and during which time he helped with the first Checkers stores. He visited supermarkets in the United States of America and heard lectures by marketing expert Bernardo Trujillio.

From this he learned “doing good, is good business”, and the business model of the four-legged table: good administration, right merchandise at the right prices, social involvement, and people will help you achieve your mission in business, which is putting the customer first.

Ackerman advised his bosses that prices were too high but they would not listen. Instead, they asked him to help fix prices. Ackerman refused and was fired. A man whom Ackerman had given business advice for free earlier, then contacted Ackerman and sold him four small stores in Cape Town under the name Pick ‘n Pay in 1966. Ackerman’s business approach led them to expand the Pick ‘n Pay brand quickly and alter how effective business practice is perceived in the country. He also fought apartheid by promoting black businessmen to management positions.

Ackerman explained that though he is now no longer technically involved in Pick n Pay, he still monitors the company and offers advice. The Luminary Award is given to individuals who have inspired others in a particular sphere of life. Previous winners include advocate George Bizos and entrepreneur Richard Maponya.

Details: Free Market Foundation fmf@mweb.co.zam 011 884 0270.