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Retail Icon Raymond Ackerman Dead at 92

raymond ackerman in his office

A Legacy Remembered

Raymond Ackerman: A Retail Visionary and Champion

In the heart of South Africa’s bustling retail landscape, one man’s vision and unwavering commitment to his principles stood out. The late Raymond Ackerman, founder of Pick n Pay, was a revolutionary who changed the face of commerce in South Africa.

With his recent passing at the age of 92, the nation mourns the loss of a true retail legend.

The Early Days of a Visionary

Raymond Ackerman’s journey in the world of retail began in Cape Town in 1931. Born into a family with a legacy in the clothing industry, Raymond Ackerman was destined to make a mark. However, it wasn’t just his lineage that set him apart; it was his visionary thinking.

As a young man, Ackerman pursued higher education at the University of Cape Town (UCT). These lessons would lay the foundation for his future endeavours.

Ackerman’s career commenced as a trainee manager at Ackermans in 1951, a family-owned business. Yet, when Ackermans was acquired by a competitor, Greatermans, it prompted Ackerman to venture further. He relocated to Johannesburg and successfully convinced the company to explore the realm of food retailing supermarkets.

The Turning Point: Pick N Pay

In 1955, Ackerman was entrusted with launching Checkers supermarkets. By the age of 35, he had taken the helm of more than 80 Checkers stores.

During a visit to the United States with his wife, Wendy, Ackerman crossed paths with Bernardo Trujillo. Trujillo was the man behind the NCR Modern Merchandising Programme, and he imparted a valuable principle that would shape Ackerman’s future— the “four legs of the table.” This concept likened a business to a table with four essential legs: administration, merchandise, promotion, social responsibility, and people. For a business to thrive, each of these legs needed to be equally sturdy and significant.

raymond ackerman and his wife wendy ackerman
Raymond Ackerman and his wife Wendy Ackerman

The Birth of Pick n Pay

The turning point in Ackerman’s life came when he faced an unexpected twist—dismissal from the Greatermans Group. With this adversity, Ackerman embarked on a soul-searching journey, wandering around Zoo Lake in Johannesburg for hours.

He decided t start his own business. Ackerman bought 4 stores with severance pay, a bank loan, a small inheritance, and shares bought by friends bearing the name Pick n Pay for R620k in 1967, in a pioneering private equity deal involving 50 investors. This marked the inception of a retail giant.

A Retail Revolution

Ackerman’s venture into the world of retail was nothing short of revolutionary. While he modestly confessed to not being a pioneer in original thinking, he was a dedicated learner who drew inspiration from American supermarkets and the global retail giant, Carrefour.

During the 1970s, Ackerman pioneered the introduction of the hypermarket concept in South Africa, providing customers with the convenience of one-stop shopping. The first hypermarket, located in Boksburg, opened its doors in 1975. However, this audacious move was met with resistance from major suppliers who baulked at selling their products at the competitive prices Ackerman offered, thanks to astute bulk buying.

A Champion of Equality and Social Responsibility

Along with being a shrewd businessman, Raymond Ackerman was also a compassionate boss and a devoted philanthropist. By elevating black workers to managerial positions while disobeying apartheid laws, he demonstrated his commitment to moral principles.

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In the 1980s, Ackerman took on the apartheid government, particularly in a showdown with Prime Minister PW Botha over rising bread prices. In a memorable meeting, Botha physically confronted Ackerman, asserting that bread prices were not his concern. Ackerman’s retort was a testament to his resilience.

His battles with the government extended to issues like petrol prices and essential item pricing, where he consistently championed the cause of consumers.

Raymond Ackerman handing out degrees to graduates.
Raymond Ackerman handing out degrees to graduates.

A Legacy of Philanthropy and Education

Beyond retail, Raymond Ackerman’s commitment to social responsibility was unrelenting. In 2004, he established the Raymond Ackerman Academy for Entrepreneurial Development in collaboration with the University of Cape Town (UCT), and subsequently, the University of Johannesburg joined this initiative. This academy has produced over a thousand graduates, many of whom have become business owners, creating employment opportunities for others. More than 400 graduates have found meaningful employment, leaving a mark on South Africa’s entrepreneurial landscape.

An Esteemed Member of the Order of The Baobab

In recognition of his tireless efforts to uplift the lives of South Africans and conduct socially responsible retail business, Raymond Ackerman was bestowed with the esteemed title of Member of the Order of The Baobab. This honour was conferred upon him in 2014, a fitting tribute to a lifetime of dedicated service.

The End of an Era, but the Legacy Lives On

With the passing of Raymond Ackerman, South Africa bids farewell to a retail icon. His life’s journey was a testament to the power of vision, leadership, and unwavering commitment to the greater good. His influence will continue to shape South Africa’s retail landscape and inspire generations of entrepreneurs and philanthropists. Ackerman’s legacy is not just about business; it’s about the enduring impact of one individual’s dedication to building a better future for all.

The Ackerman Family’s Billion-Dollar Fortune and the Pay Disparities at Pick n Pay

In the world of South African retail, the Ackerman family’s name is synonymous with success and wealth. Forbes estimates their fortune to be a staggering R5 billion, placing them among the country’s wealthiest individuals. However, their vast wealth has not been without controversy, as concerns about pay disparities at the retail giant Pick n Pay have persisted.

A Billion-Dollar Legacy And the Handover to Gareth Ackerman

Raymond Ackerman, the former chairman of Pick n Pay, has played a pivotal role in building the family’s fortune. Under his visionary leadership, the retail empire expanded significantly, making its mark not only in South Africa but also in neighboring African countries. His retirement in 2010 marked a transition of leadership to his son, Gareth Ackerman, who assumed the role of chairman.

The entrance of a Pick N Pay Store
The entrance of a Pick N Pay Store

The Pick n Pay Workforce:

While the Ackerman family’s fortune soared to billion-dollar heights, there have been ongoing concerns about pay disparities within Pick n Pay. Despite its prominence in the South African retail industry, the company has faced criticism for what some perceive as relatively low wages for its workforce.

Income Inequality Debates:

Critics argue that Pick n Pay did not place sufficient emphasis on ensuring that its employees received fair compensation. This disconnect between executive earnings and the wages of ordinary workers has led to public discontent and ignited discussions about income inequality within the company.

A Complex Legacy:

The Ackerman family’s remarkable success story in the retail industry is a testament to their entrepreneurial spirit and business acumen. Nevertheless, their fortune has been marred by ongoing debates about pay disparities at Pick n Pay, raising important questions about equitable compensation practices within South African corporations.

As the Ackerman family continues to wield significant influence in the business world, the issues of fair wages and income equality remain at the forefront of public discourse. Balancing their billion-dollar legacy with addressing these concerns presents a complex challenge for the family and the retail giant they helped shape.

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