When Paul Simon, the founder of YDE, and Arie Fabian of the Fabiani brand, came up with the concept of We Are EGG, their plan was to revolutionise and reimagine retail in South Africa. ‘EGG is a platform for others to stand on,’ says Simon. ‘It's effectively my old YDE model where we provide brands with a platform, both in the physical and digital space. We have deliberately targeted SMEs and I’m proud to say we’re 82% local.’

The entrepreneurial mavericks built the entire business during the initial Covid-19 lockdown in early 2020. ‘On 1 April 2020 we officially started working towards opening EGG and opened the doors on 1 December. To think we’ve executed a world-class platform with more than 250 partners during a pandemic, shows the sheer dedication and drive of our team,’ says Fabian.

What does it mean to start a new business under lockdown?

‘Starting a business during a pandemic definitely did present a unique set of challenges,’ says Simon. ‘We weren’t able to get things done in the period we would have liked given the restrictions of lockdown. Conducting all our meetings in the virtual world on Zoom was also far from ideal.’

But perhaps the biggest challenge they faced was the very subdued trading environment. They are confident this will normalise in time, however. ‘We knew this prior to opening but we believe, and I know it sounds a bit harsh, that a positive that has come from Covid is that it is cleaning up the retail space,’ explains Simon. ‘Retailers who have become complacent and presented the same offering year after year are simply not going to make it. Those who are prepared to innovate, though, will be the ones left standing. And they will come out of this much stronger.’

Despite the challenges Covid-19 and lockdown presented, We Are EGG saw about 94 000 customers walk through their doors during the first month of trading.

What does EGG offer small businesses and startups?

‘The idea of EGG is simple – an egg is an incubator and everything comes from an egg. Given that these difficult times have forced everyone to rethink their business, our aim is to rebirth things, like SMEs. The main idea behind EGG is that it will be an incubator for brands to stand on,’ says Fabian.

In essence, We Are Egg gives a home to brands, people, creatives and innovators who might not otherwise have access to it. ‘Our business model removes the usual red tape that often trips up SMEs,’ says Simon. ‘We understand that people don’t want to sign long leases because they’re unsure of the future. We’ve negotiated the lease to allow our vendors – or partners, as we call them – to sign a contract that goes on indefinitely but which can be cancelled by them or us with one month’s notice.’

In doing this, EGG gives SMEs access to a mainstream shopping environment. ‘A small brand like our vendors probably wouldn’t otherwise have access to A-grade mall environments. Small businesses typically are not able to negotiate a lease with a shopping mall landlord and do not have the money for things like shop fittings and surety.’

‘We took it one step further and EGG is a true omnichannel retailer,’ says Simon. ‘What that means is that everything happens from the same location. If you look at about 90% of retailers, e-commerce happens from a warehouse probably in an industrial area. Our e-commerce happens from our store. We’ve built a warehouse above the shop and when an online sale comes through, we can pick and pack it right there and then.’

Did Covid kill bricks-and-mortar shops?

Bricks-and-mortar retail is definitely not dead, says Simon. He believes that it’s just changing direction.

His and Fabian’s research showed that physical stores work optimally when combined with e-commerce. ‘You can see as much as a 25% increase in e-commerce sales if there is physical engagement with the consumer. It’s human nature to want to touch, engage and feel.’

‘That human connection will never go away,’ adds Fabian. That is why they are busy building an app that will allow shoppers to make a purchase while browsing in the store. It will allow customers to touch and feel the product, and then choose to have it delivered to their home or to collect it 15 minutes later at the click-and-collect counter.

This is not new in retail overseas, explains Simon. ‘We’re just one of the first to do it in South Africa.’

Partnering with big business

Simon and Fabian developed the concept before approaching Old Mutual Property to partner with them.

‘On the face of it, it’s an unlikely partnership. ‘Old Mutual is a well-established company steeped in history and then you have us – two fashion entrepreneurs,’ says Fabian.

‘This is the first time in the retail environment that the landlord actually has equity in the business,’ says Simon. ‘I think initially they were quite taken aback but then saw the value in our proposal. It’s been an incredible relationship and we anticipate it will grow into the future.’

‘We recently had our first board meeting,’ says Fabian. ‘We were blown away by the unbelievable support and belief in EGG’s sustainability and profitability from Old Mutual. Property. Our dream is to challenge the landscape of retail in South Africa, and this partnership will allow us to make it come true.’

Plans are already afoot to open another two stores and, according to Simon, they are looking to open in Rosebank in Johannesburg before the end of 2021 and in Durban’s Gateway Mall in the first quarter of 2022.

For interviews, advice and real-life stories to inspire and encourage small-business owners, read Nine Yards magazine.