Few retail stories embody the nation’s spirit of resilience and community quite like Cape Union Mart. What began in 1933 as a small store wedged between retail giants on the corner of Cape Town’s Mostert and Corporation streets has evolved into one of South Africa’s most cherished institutions through a commitment to values that have remained constant across four generations of family stewardship.
When Philip Krawitz Snr arrived from the Soviet Union with little money and no English, he faced the daunting task of establishing himself in an unfamiliar land. His first Cape Town venture nearly failed before it began – unable to pay his creditors, Krawitz made them a simple promise: give me a chance and some stock, and I’ll pay you back. They did, and he did.
For more than nine decades, this foundation of mutual respect and honour has permeated every aspect of Cape Union Mart’s operations. It was further entrenched when, in 1970, Philip Krawitz took over stewardship of the company from his father Arthur. Under Philip’s visionary leadership, Cape Union Mart grew from a single store to a 250-store retail empire, featuring flagship brands such as K-Way, Old Khaki, and Poetry, and expanding rapidly across southern Africa.
Yet despite its phenomenal growth, the company’s approach to its stakeholders – from suppliers to landlords, from bankers to staff – reflects a philosophy that business relationships are fundamentally human relationships, based on trust and respect. “We are respectful to our stakeholders. And we partner with people who share these values,” explains Martine Vogelman, Strategic Brand Director and fourth-generation family member.
Perhaps nowhere is this philosophy more evident than in the company’s treatment of its employees. In the retail sector, where staff turnover is notoriously high and job security often precarious, Cape Union Mart stands apart. The company has never retrenched a single employee in its nearly century-long history – a remarkable achievement that was tested most severely during the COVID-19 pandemic. With 3 800 employees at the time and severe implications for turnover and cashflow, the family made a decision that speaks to their core values: everyone kept their jobs. “Employees are family,” Vogelman states simply, adding that this remains one of the achievements the group is most proud of.
The company employs more staff per square metre than other retailers, and invests more in training and development, and average shop-floor salaries, compared to others in the sector in order to deliver on their promise of customer service. Weekly training sessions ensure that staff remain knowledgeable and confident, creating what the company calls an “experiential shopping experience.” Walk into any Cape Union Mart store, and you’ll be greeted by someone who knows their products intimately and takes genuine pride in their work – many having been with the company for multiple decades.
As Cape Union Mart has embraced a growth trajectory, including the appointment of their second non-family CEO, Mike Elliott, in October 2023, the family has been deliberate about maintaining their ethical standards. “We’ve been very careful not to lose sight of what made us so respected and loved by SA consumers,” Vogelman notes. The selection of leadership, whether family or external, follows a clear criterion: individuals must be of outstanding ethical calibre who understand that how business is conducted matters as much as the results achieved.
Innovation, too, has been guided by respect for customer needs and for South African ingenuity. When the company couldn’t find manufacturers who would produce exactly what they wanted, they didn’t compromise or look overseas. Instead, they bought a factory in the early 1980s and created K-Way, now an award-winning outdoor brand. More recently, they’ve developed and patented luggage that weighs itself, addressing a real travel concern with South African innovation. The K-Way factory in Ottery operates with a philosophy of reduce, reuse, and recycle, ensuring that every scrap of material is utilised.
The company’s respect for South African consumers shows in their product strategy. SA consumers are becoming very discerning, and they know the quality of products available internationally. Cape Union Mart focuses on making world-class products at competitive prices, maintaining the promise of service that made the company famous.
Looking ahead, with new flagship stores at the V&A Waterfront and Sandton, and continued product innovation, Cape Union Mart remains focused on growth while staying true to its foundational values. The recent surge in local travel and outdoor activities has reinforced the relevance of their offering, but success hasn’t changed their approach. Service remains paramount – the same principle that helped a small store survive between two retail giants in 1933.
Cape Union Mart’s story offers a reminder that sustainable business success can be about treating people with dignity, honouring commitments, fostering innovation, and understanding that a company’s true legacy lies in the lives it touches and the values it upholds.
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