The South African retail industry is growing significantly and increasingly becoming an
important contributor to the country’s economic growth. The industry grew by 5.9 percent
in 2011, in terms of sales, compared to 3.6 percent decline in 2009. According to figures
privided by the Statistics South Africa (StatsSA), the industry contributed six percent to the
entire South African economy and 23 percent towards total employment in the country.
Despite the growing significance of the industry in the South African economy, the industry
is still marred with chronic challenges of poor education and skills shortages. Major players
in the industry indicated that these challenges are the main impediments to potential higher
growth.
In the face of these challenges, one of the major retail groups in South Africa has embarked
on a training programme (Survial of the Fittest Business Skills). The purpose of this
programme is to equip new store managers with financial skills, with the ultimate aim of
increasing profits. These new store managers are supposed to enrol into the programme
within their first six months of appointment.
Although Survial of the Fittest Business Skills training programme has been operating for
more than five years, no assessment was done to evaluate the impact of this programme on
business outcomes. Generally, little is known about the link between skills training and
organisational financial performance. The literature on the impact of training on business
performance is limited, mixed and varied. This study is therefore motivated by the need to
shed more light on the impact of training on business performance. Specifically, this study is
a theory-driven evaluation that examines the impact of the training programme on a South
African retail group’s financial performance.