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Africa's retail news resource for the industry! 11 Feb 2008
Retail, Banking & Finance, Brand news, Catering, Cold chain, Consumer research, Distribution, Franchising, Health & Safety, Import/Export, Logistics, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Retail services, Security, Shopfitting, Supermarkets, Supply chain, Technology, Training, Wholesalers.

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No heads to roll
We can relax; no one need fear for their job and for playing a role in allowing the development of the power crisis – we know, because the President told us that on Friday. It seems we were all caught unawares; no one knew what was happening - and it's not because of incompetence, but because we're successful! This, despite the fact that Eskom itself, and others, warned years ago that the national grid would fail, but the Cabinet disregarded the warning. However, not all is lost... yet.... What we now apparently have to do is shuffle around in the dark and catch anybody and everybody wasting power, and report them. We can even report government departments! Not that anything would happen to the idiot who forgot/didn't bother to turn off the lights. He or she will still get a fat bonus at the end of the year. Can you imagine the impact on the career of a manager in the retail or any other business sector of not making a plan... or not bringing in generators? As long as people in senior positions in state, parastatal, provincial and municipal institutions can screw up with impunity and still be paid (I refuse to use the term ‘earn') fat salaries, we shall continue to stagger from crisis to crisis. Today it's electricity. Tomorrow...?



Rod Baker, Content Manager

Headlines

Retail
Testing: What do you really learn?
[David Baker] In the world of email marketing and marketing in general, everyone loves to discuss testing. It's usually the second thing out of a marketer's mouth when discussing email, outside of how often to send email.

The rise of the CCO
It may take another period of prolonged cutbacks in consumer spending - brought on by a recession, perhaps - for companies to realize they must incorporate CCOs into their structural DNA. That's when the old industry maxim that it's more expensive to get new customers then keep the ones you have is likely to be dusted off and re-examined.

Drawing a business intelligence road map for e-tailers
In order for retailers to derive actionable insights from their data for improved customer knowledge and loyalty, they need to ensure their data is reliable. Aberdeen's research demonstrates that Best-in-Class retail companies are able to react more quickly to customer demand because they operate using real-time information that is cleansed and tracked against goals and previous performance.

Woolies to up organic food sales by R1bn by 2012
Woolworth said last week that it will continue to expand its organic food range, aiming to increase organic food sales by more than R1 billion by 2012.

Mbeki's state of the nation address - what BUSA wants
“The major gains made by South Africa in the economic sphere, since 1994, warrant celebration and pride indeed,” states Jerry Vilakazi, Chief Executive Officer, Business Unity South Africa (BUSA).

Wagging the dog: Is 2008 the year to see advertising ROI in the long tail?
[Rob Crumpler] Traffic = eyeballs = money.

Four different ways of looking at engagement
[David Baker] What does engagement really mean to an interactive marketer? This is the theme of our monthly newsletter (internal) from several of our thought leaders in search, business intelligence, advance optimization – and, of course, email eolutions (my group).

Not much change to the total at the till
[Lihle Mtshali] Every month we go shopping at four large food retailers and keep track of the prices of the items in our trolley.

New vehicle sales continued to slide
January new vehicle sales continued the downward trend seen in the second half of 2007 with the market almost 10% lower than in January 2007.

Print green - save the environment, save money
Today, the protection of the environment is one of the biggest challenges and concerns the world faces. Striking a balance between economic development and environmental preservation is a problem that all consumers and businesses need to address.

New appointment at AstraZeneca
Fanie Bosman has been appointed Purchasing and Supply Manager for AstraZeneca Pharmaceuticals


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Banking & Finance
New tech in US lets customers make bank deposits without leaving home
CheckFree's Remote Deposit Capture system in the United States has some hurdles to clear even though in the long run the technology will be a boon to consumers, said Ed Kountz, a senior analyst with JupiterResearch. However, "over the short term, of course, it allows the consumer to basically deposit a check, as long as you have a scanner, a PC and an Internet connection, and that's certainly a positive."

The impending downturn – are money managers missing the plot?
According to a trio of reports by a leading data, analysis and forecasting company in the UK, money managers may be sleepwalking through a significant market downturn.

Worker's bank opens new branch
Teba Bank has opened its new branch, in Westonaria – and the opening also marked the launch of a new vision as well… to broaden the client base.

Negotiating the risk management maze
The inability to aggregate an organisations' overall risk position allowed a failing of credit risk principles in a relatively small section of the US housing market, to spill into a wider liquidity risk for global wholesale finance markets. This is according to a new report, “The Evolution of Enterprise Risk Management”, by independent market analyst Datamonitor.

RBZ moves to resuscitate use of international credit cards
[Dumisani Ndlela] The Reserve Bank of Zimbabwe (RBZ) has launched a bid to resuscitate use of international credit cards, saying the country had lost a significant amount of foreign currency after local banks abandoned provision of the service to foreign visitors due to an economic crisis now in its ninth year.


Brand news
Unrest affects Kenya Airways
This week, Kenya Airways CEO Titus Naikuni presented an update on the company's performance following the post-election unrest.

S&P places Foodcorp ratings on watch negative
South African food manufacturer's disappointing results lead to credit rating adjustment - with negative implications.

In light of his success…
… Here's... Makhaya Ntini.


PUMA and Ghana extend partnership
PUMA and the Ghana Football Association (GFA) have announced a multi-year extension of their successful partnership through the 2014 FIFA World Cup. PUMA CEO Jochen Zeitz and GFA President Kwesi Nyantakyi made the announcement during a special reception in Ghana's capital of Accra.


Avoiding brand oblivion
Every minute, a brand-new venture or major product is being launched with huge fanfare in Asia. This is how it once was in the West during the e-commerce boom of the '90s.

Into the saving zone
Cellphone company launches a world-first innovation helping customers save money.


Shoprite sees diluted HEPS up
Earnings per share and diluted earnings per share are expected to be between 40 and 50% higher.

Leading estate moves to stay ahead of the pack
The Nederburg brand has been retiered, repackaged and reorganised to ensure it maintains its front-ranking position in the local market and to further already rapid gains garnered abroad, says marketing manager Misti Watson.


Portobello's trendsetter to launch in SA
Premium fashion brand Pepe Jeans has fashionista's and high-end retailers abuzz awaiting its fast approaching winter launch in South Africa in early 2008.

Parmalat launches yumchums Fortified - Parmalat SA
With the launch of yumchums Fortified Parmalat has taken another step to ensure that children get their daily vitamin and mineral requirements packed into food that's fun.


Brighten up your day

click to enlarge
BIC is launching a new generation of multi-purpose lighters, the Megalighter. Ideal for everyday use, the lighter sports a curvier body shape for comfortable handling, a retractable hook for easy storage and a visible gas level. The product is said to provide 750 lights under normal conditions of use. The BIC Megalighter is available from all leading retail outlets in two colour variants: a trendy light green & silver, and a classic black & silver.


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Consumer research
Going Green
There is no doubt that 2007 was the year when “green” took off. However, there is currently very little guidance on what implications this increased buzz and public interest has for specific brands and their individual environmental concerns. So what does green mean for your brand?

CNBC Africa survey provides some interesting insights
CNBC Africa conducted a small survey by means of an on-line questionnaire, and though the sampling is too small as a base for definitive, the results have proved valuable.


South African consumers still confident
The MasterCard Worldwide Index of Consumer Confidence shows South African consumers remain confident, and also that Durban Consumers more optimistic than those in Johannesburg and Cape Town.

I'm looking for a job…
Nearly 54 million Europeans visited a career web site in an average month during Q4 2007. Monster leads the category with more than 6 million visitors per month.

It's a wrap: The Internet Year 2007
comScore, in a recently released report, "The 2007 U.S. Internet Year in Review" highlighting the major trends in U.S. Internet activity, finds that that top gaining properties and site categories featured some of the top Internet brands, including Google, Facebook, Wikipedia and Craigslist.

Rising obesity levels contradict consumer attempts to eat healthier
Despite consumers making active attempts to eat healthier, the threat of obesity shows no sign of slowing down. Once confined to high-income countries and households, obesity is now just as much of a problem as malnutrition in developing countries.


Distribution
Kenyan crisis ripple effects felt across the region
Unrest in Kenya threatens humanitarian and commercial operations throughout the Great Lakes region, potentially affecting more than 100 million lives, according to analysts.


Winery benefits from BEE distribution model
While Perdeberg Winery has been going about producing an excellent range of wines since 1941, a new BEE initiative has injected some fire into the business and given it broad, off-trade distribution throughout South Africa.


Franchising
Franchise dream comes true in Bloem
A dream will come true for two young Free State men on 19 March 2008, when Pick n Pay opens its first converted Score store in the province as a Pick n Pay Franchise Family store in the city centre.


Health & Safety
Named and shamed meat market mops up
[Chari-Ann James] Local newspaper report leads to staff at butchery - named as one of East London's dirtiest - getting down on their knees.


Import/Export
India, South Africa sign pact on agriculture
The Indian government on Thursday, 7 February, approved the signing of a Memorandum of Understanding (MoU) between India and South Africa on agricultural cooperation.

SA, Egypt to increase business ties
South Africa and Egypt have agreed to increase trade and investment relations through identifying business opportunities in both countries.


Logistics
The next hot spot for logistics industry
The logistics industry in Central and Eastern Europe (CEE*) and Russia is set to experience a period of high growth over the next five years, going by independent market analyst Datamonitor's latest research.


Merchandising
Making private label sourcing work
A new study has identified best practices for private label sourcing.


Packaging
Recycling can help alleviate energy crisis
Recycling can play a major role in alleviating the country's energy crisis, says a senior Cape Town official, with eye-opening statistics to back up this claim.

A healthy choice of labelling
With poor lifestyle choices, including over-nutrition, being the primary cause of growing chronic illnesses in South Africa across all demographic sectors, a scientific benchmark system is being locally adopted to identify healthier food products.


Packit appointed as Gruppo Fabbri distributor - Packit
Gruppo Fabbri, a leading worldwide manufacturer of automatic stretch wrap and MAP machines has appointed Packit as its Southern African distributor.


Promotions
Kids go shopping and join the space race
Keeping with Spar's 'Good for you' philosophy, the grocery giant is the latest retailer to conclude a deal with Primedia Unlimited subsidiary Icon Media to turn shopping with Mom and Dad into FUN! with new trolleys in 28 of its Super Spars in the Northrand region.

Help a child in need
Spoil your loved one with an SOS children's rose this Valentine's Day.


I've been clinking…
Perdeberg Wine – the one with the zebra – has launched a first for social networking. The ‘clink to win' application gives Facebook users the chance to raise a glass to anyone or anything and rewards them for doing it too.

Sign Africa 2008 events launched
Practical Publishing has launched Sign Africa 2008, with larger venues, exciting new products and live demonstrations. For the first time, Sign Africa will be going to the Eastern Cape with a product day in Port Elizabeth, aimed specifically at the growing signage industry in that area.


Buzzing branded trollies bring benefits
Icon Media-branded trolleys will be buzzing around selected Dischem stores, thanks to a new media partnership signed with the pharmaceutical chain.

Sneak peak at our Hoodz - Right Stuff
With the high incidence of skin cancer comes the unique idea of adding extra sun protection to your everyday peak cap. The average cap is great for cutting the glare, but is it providing protection for your ears and sides of your face? The solution is the patented Hoodz which snap onto your favourite peak cap, providing additional sun protection for face and ears.



Regulatory
Union calls for heads to roll
Union calls for CEOs of Premier Foods, Pioneer Foods and Foodcorp to go over the bread-price fixing scandal.

Tribunal sets down dates for milk producers' hearings
The Competition Tribunal has set down dates for hearings regarding the milk price fixing issue.

Retailer wants review of SA fuel-pricing regulations
Pick n Pay wants Government to look again at how the price of of fuel is regulated in South Africa.

State will get cream from fixed milk price
[Zweli Mokgata] Consumers are unlikely to be the direct beneficiaries of the competition trial into the milk price-fixing scam.


Retail services
Call centres: To build or buy?
[Denis Pombriant] USA - The truth is that call centres are expensive, and they don't usually show positive returns except for the fractional payback you get when you can boost productivity by handling more calls. Also, with so many moving parts, it really is easy to believe that the system you've nursed along for years is as good as anything out there - or certainly good enough.

Next item on sale at Amazon: Its data centre
[Jessica Mintz] Critics thought it was over the top when Amazon.com expanded from books into music in 1998. When the Web retailer let competitors start selling things alongside its own inventory in 2000, they said Amazon had gone nuts. In both cases, Amazon proved them wrong.


Security
The cost of ID theft, Part 1: Beyond dollars and cents
The ultimate cost to ID theft victims varies across industries, Uriel Maimon, senior researcher for the software firm RSA, told the E-Commerce Times. This series of reports relates to the United States, but it has lessons for South Africa.

The cost of ID theft, Part 2: Fixing the system
The costs as well as the volume of ID thefts continue to rise. Estimated business losses per victim increased by about $7,500 from 2003 to 2004, from $41,717 to $49,254, according to the Identity Theft Resource Center. Reported costs per record were $197 last year, according to the Ponemon Institute's third annual study.


Supply chain
SA invests R2.3 billion to develop industries
In line with South Africa's objective to strengthen and diversify the industrial sector, government has pledged R2.3 billion over the next three years to support industrial policy.

SA consumers taking brunt of unnecessary fuel price increases, says Ackerman
[Sibongakonke Shoba] "And ultimately, what's good for consumers is good for SA," he says.

'Agflation' haunts the market
[Evan Pickworth] With food inflation in South Africa running at over 10%, a new danger is haunting the marketplace – a creature called 'agflation' or agricultural price inflation.

Is your electronic data agreement your supply chain's weakest link?
[Phillip Schmandt] The world's largest companies are moving their buying and selling to the Web. A majority of them purchase from suppliers online via the Web or with Web-based supplier integration software, according to Forrester Research. As old procurement and back-office systems mature and the opportunity for greater data analysis and efficiencies rise, these global supply chains will be linked electronically.

Food garden feeds inner city residents
[Millicent Kgowedi] Vulnerable and hungry people living in Johannesburg's inner city are enjoying the fruits of the successful Siyakhana Food Garden in Bezuidenhout Park.

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Technology
The tubbier Touch
[Chris Maxcer] On Tuesday, 5 February, Apple released upgraded versions of the iPhone and the iPod touch, doubling the maximum memory configuration for each device.

Super new games launch
Core Gaming Group, Nintendo's representative company in South Africa, has announced the release of two blockbuster games for the Wii, Super Mario Galaxy and Mario Party 8, along with the much anticipated launch of the handheld console system Nintendo DS Lite in SA.


Broadband, wide implications
[Paul Luff] Broadband has great potential, but it is being hampered by artificial limits.


Mobility becoming more important in unified comms
Economic issues are set to drive, rather than inhibit, growth in unified communications.

Make logins easy!
[Stoney deGeyter] Here are 14 usability tips for login and my account pages. Let's face it, the easier it is for people to log in, the happier the are, and the more likely they are to make a purchase.

How to choose a data centre
After a bad experience, I vowed to myself that I wouldn't be fooled again. I put on my Due Diligence Hat and sat down to determine how to choose a data centre.

The case of the million missing iPhones
[Olga Kharif and Peter Burrows] It's been dubbed "The Mystery of the Missing iPhones." On 22 January 2008, Apple reported that it sold 3.7 million units of its smartphones worldwide through the end of 2007. However, AT&T, the exclusive U.S. iPhone reseller and by far the largest buyer of the devices, reported that its subscribers activated fewer than 2 million units last year. The big question on the minds of Apple watchers is: Where have the other 1.7 million iPhones gone?


Galleries
Media play-date with Nintendo


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Rainbow FoodSolutions Ready2Go Fully Cooked winners


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Events to diarise
Retail banking workshop Euromoney Institutional Investor - Johannesburg, 11 March
This hands-on training course covers areas such as current trends, marketing and distribution strategies, strategies to improve processes and cost efficiency.
 

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