Steinhoff aims to be the retailer of choice for householders by quality, value and convenience. While CEO Jooste makes some reference to these value drivers in his review, the rest of the report focuses on trading results, based on market growth and turnover, supply chain and operational efficiencies, as well as competitive advantage gained from backward integration into the supply chain and cross border trade.

Given the dominance and control at top leadership, Steinhoff may be vulnerable to key-man risk. Given the lack of reporting on the value created in building relationships, Steinhoff may be vulnerable to its business partners withdrawing from business dealings in the event that the company becomes exposed at a reputational level.

Reporting on regulatory risk, while noted and described, contains insufficient information to assure shareholders that the company may not be exposed to regulatory sanction.

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