Piet Herholdt Jnr - The man to grow the group into the 21st century...

As the third generation of Herholdt’s to take over the running of the Group which his grandfather Faan founded over 80 years ago, Piet Jnr is undoubtedly filling big boots.

If his grandfather Faan was the visionary, the ex-hairdresser who laid the foundations of the Herholdt Group on the back of a successful hairdressing business in Middelburg back in the Thirties, and his father Piet Snr. the man who took on his father’s mantle and built the business into a modern empire, then Piet Jnr sees himself as the one to propel the Group into the 21st Century.

Like his father and grandfather, Piet was born in Middelburg in the Eastern Cape, schooled there, and thereafter was drafted into the Army based in Bloemfontein. “When I left the Army, my father decided I should spend a couple of years at the Glen Agricultural College in Bloemfontein. And the reason is that the family has always farmed, we come from farming stock. My father believed that although I would end up in the Herholdt Group, yet it was important for me to acquire a knowledge of farming,” he revealed.

However, on 1 December 1985, on completion of his agricultural course, the young Piet joined Herholdt’s. He said: My father was determined that I would learn as many aspects of the business as I could and so he started me in sales in our Indecor shop in Middelburg. It wasn’t a real shock for me as during my school holidays I had often helped out selling carpets, so I knew something of the business.”

Just six months later he was appointed to manage Herholdt’s in Colesberg. “It was one of our smaller outlets and I suppose my dad thought I could handle it. I was there until the end of 1988, and that was a very good learning experience for me,” admitted Piet. But the company was experiencing a few staff problems. “We were losing managers for one reason or another – I suppose all companies go through that from time to time – but I was then asked to go to Beaufort West and help train Stefan de Klerk to take over there.”

“I oversaw Stefan’s training there for three months and then I moved on to our flagship branch at Middelburg..” Piet Jnr was there until 2009. “It was a long stint but it ensured that there was very little I didn’t know about the operations side of the business,” explained Piet. “It was a 10 year period of learning on the job. Then my father must have thought I was ready to move into admin and I was moved to our head office – also in Middelburg.”

“He moved me into all departments of the business, exposing me to every aspect of Herholdt’s,” said Piet, “I learned about staff, about procurement, about buying, about properties, rentals, accounts, debtors, creditors, transport, the lot. I knew he wanted me to acquire a broad knowledge of the business as he had retirement plans, and indeed he did finally retire in 1998.”

“But,” admitted Piet, “he couldn’t tear himself away completely and used to come in to the office every Monday and Friday”. Once his father had retired and he had taken up the management reins on his own, did he feel the need to change direction, do things differently?

“I didn’t want to change things radically, at all,” stated Piet, “but I knew my challenge was to grow the business further. I have always believed that if one stagnates, one actually goes backwards, so my priorities was to expand Herholdt’s but in a very organic way.” He closed the Beaufort West branch. “It wasn’t a major contributor either to turnover or profits, so I decided to close that down and open up in Graaff Reinet.

“It turned out to be a good move as today Graaff Reinet is the Group’s flagship store,” said Piet with quiet satisfaction.”Today in Colesberg, Middelburg and Graaff Reinet we have three stores – a Top Carpets, a Herholdt’s and an MTN outlet.

In 2006 Piet felt emboldened to break away from the platteland and bought a store in Jeffreys Bay. “It was called ‘Drommedaris’ and enjoyed a very good reputation and brand image locally, so I decided to keep the name and trade as Domedaris,” confided Piet. “Obviously, the shop is Herholdt’s in every thing but the name.” His merchandise mix there is interesting, inasmuch as there are no carpets, but he stocks antiques as well as furniture and appliances. “It is amazing how successful that mix has been,” admitted Piet.

He has taken Drommedaris to his heart. “I spend the best part of three weeks in every month there and one in the Karoo, but I have moved my son Pieter in to help at Jeffreys Bay. So he is there when I am away. The fourth generation of Herholdt’s,” says Piet proudly. “In due course he will also move to our head office, as I was, to learn the ropes, and every aspect of the business, so that he will be ready to take over whenever that may be,” said Piet.

Looking at the company’s success and at the Herholdt brand, Piet believes that it is not ‘rocket science.’ “My grandfather and father knew instinctively that the customer is king. That too is my philosophy and every one of our employees understands that that is the bedrock of our success. A happy customer is key to our success and we are dedicated to keeping happy customers.

“To that end, we offer the most competitive prices at the best value, value for money drives us, plus the best possible service and after sales service. It gives us the competitive edge which it always has done.” As for his own management approach and style, Piet is forthcoming. “It’s about control and communication. I have three or four area meetings annually, but I will talk to our branch managers and our area managers more or less on a daily basis.

He continued, “Everyone who works for Herholdt’s, managers and staff, knows I have an open door policy. I encourage them to contact me directly if there are problems which cannot be resolved at branch level for whatever reason. And that, as importantly, goes for our customers. I make myself available to talk to them about whatever  is bothering them. And I promise them that together we will resolve their problem.”

Looking ahead, Piet feels it is time to perhaps diversifying the Groups’ interests. “If new opportunities present themselves, outside the Group’s core business, we will look at them very carefully,” he insists. “Yes, we are in the furniture and associated businesses, and that is where we started, but I don’t regard myself exclusively as a ‘furniture’ businessman. I am a businessman and I am in business!” he declared unashamedly. “I don’t ever want to feel tied down to any specific business activity.

Although when Piet Snr retired and left the entire Herholdt conglomerate to both his sons, Piet and Stefan, it was they who made the joint decision to split the Group evenly with Piet looking after the Eastern Cape and Stefan the Western Cape operation. It has worked very well,” confirmed Piet.

“We still collaborate whenever we can,” he continued, “for example we still do joint buying, but by and large, each of us is responsible for his own areas of business and can develop it as each sees fit.”

It is clear nevertheless, that despite the somewhat unorthodox ‘modus operandi’ of its chief executive, the Herholdt Group could not be in better hands, and is moreover poised to significantly expand over the next few years. “ Herholdt is synonymous with the Eastern Cape and whatever else we might get involved in, we fully intend to further strengthen those bonds in the foreseeable future,” concluded Piet Herholdt Jnr.