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Africa's retail news resource for the industry! 25 Aug 2008
Retail, Associations, Banking & Finance, Brand news, Cold chain, Consumer research, CSI, Distribution, e-Commerce, Exhibitions, Franchising, Health & Safety, Hospitality, Import/Export, Informal Retailing, Logistics, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Retail services, Retailers, Security, Shopfitting, Supply chain, Technology, Training.

The cost of the good ol' days
Having spent the weekend with around 50 kids with an average age of 11, all clutching bags of chocolates, gummies and other sweets that would rival any American child's annual Hallowe'en haul and must have cost their parents a week's worth of groceries, I took a trip down memory lane to the price of things 'now and then'... Remember when you could buy your weight's worth of Chappies for R2, Wicks sticks for under 50c and Eskimo Pies for less than a buck? (In fact, some of you may even recall purchasing all of the above for around half a cent...) I think back to a time when my mom was looking grim-faced at a 10kg bag of dog food that was nearing the R20 mark; a time when a hotdog or hamburger cost R1 at the school tuckshop, and (some 10 years later) a pie was still R3... Remember when you could buy a 2-litre Coke for under R5 - and it wasn't on special...? Remember when a 2l milk was under R8? Oh wait, that was only about two years ago... Can you recall when a month's worth of groceries came to R100...? Now you'll spend that on a litre of petrol, a couple litres of juice, a loaf of bread and a can of decaf coffee. So I can't help but think of these children having this same conversation in 10 or 20 years time, saying things like: "Remember when a chocolate bar was under R5, milk cost R15, an ice-cream was only R10; you could get dog food for about R75 and tea bags for under R40..." So now, as we stare at our grocery bills that are sucking down half a month's salary, give a thought to future generations... and perhaps stop at your nearest bank to convert your child's trust fund into a future grocery policy.


Shan Radcliffe, Retail editor
retailnews@bizcommunity.com

Headlines

Retail
5FM DJ's vamp up the ramp at Sanlam SA Fashion Week
Top South African designers will be showcasing their summer collections during Sanlam SA Fashion Week at the Sandton Convention Centre (SCC), from 26 - 30 August 2008, and 5FM presenters will be out in full force, strutting it on the catwalk before hitting the decks at the show's after-parties.

SA marketers not speaking to moms
[Tshepiso Seopa] South African marketers are not focusing on moms in their marketing campaigns; they are speaking to women, to men, to the youth - but not to the gatekeeper. This is the opinion of Maria Bailey, CEO and president of US-based company BSM Media.

R1 petrol cut likely with oil price stabilising, say economists
[Michael Appel] Economists believe there's further good news on the way for motorists with a R1 cut in the petrol price next month, following a significant drop and stabilisation in oil prices.

Busa says SA on the rebound
While the better growth figures for the 2Q of 2008 were expected, Business Unity South Africa (Busa) said, in a statement released this week, that it sees the overall 4,9% growth in 2Q 2008 as mainly a rebound from the serious negative impact of South Africa's power crisis in the 1Q 2008.

Eight new category winners in 2008 Top Brands
[Susan Moerdyk] Eight out of 39 categories are topped by new winners, which is an amazing feat! It is always comforting that one of the defining trends of the Top Brands survey is stability, as this is in line with credible global brand studies. Despite this trend, it is very encouraging to see that there has been considerable movement this year, which is a result of rigorous and sustained brand management. [video]


PnP concept store is keystone to Sandton development
A 1950m2 unique Pick n Pay concept store will anchor the R280 million Morningside Shopping Centre redevelopment in Sandton, which is set to open in June 2009.


Retail results to echo tough trading conditions
[Tiisetso Motsoeneng and Michael Hamlyn] Year-end results from several retailers this week will reflect tough trading conditions although there might be surprises on the upside, analysts say.

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Associations
Union tells Woolies to watch out
[Vusi Ndlovu and Rethabile Mateka] The South African Commercial, Catering and Allied Workers' Union (Saccawu) has warned Woolworths that it could face rolling mass action if it did not accept workers' demands.

Go Red and save your heart - The Heart and Stroke Foundation SA
Go Red for Women is an international movement aimed at increasing awareness amongst women of the risk factors and signs of heart disease. The Heart and Stroke Foundation SA (HSFSA) will be hosting a Go Red for Women Wellness Workshop on 27 August in the Tsitsikamma Conference Centre at the Boardwalk Casino and Entertainment World complex in Summerstrand, to raise funds and awareness of this campaign.


Banking & Finance
Travellers in a quandary as American Express cuts off Zimbabwe
[Dumisani Ndlela] Zimbabwe's banks were reportedly scrambling for a solution after American Express began the process of withdrawing from the country.


Brand news
Nokia promotion includes 72 Fiat 500s
London, UK: Seventy-two all-black Fiat 500 superminis have been acquired by communications specialist Nokia in a UK fleet deal that will see the distinctively liveried Fiats help kick-start a new high profile promotion by the phone manufacturing giant.

Cape Town onboard Monopoly's World Edition
Monopoly fans the world over have had their say, and the final results are in as to which cities will be represented on the new Monopoly Here & Now: The World Edition game board. As the only African city to be featured in the game, Cape Town claims its place in the green, ranking the third most-expensive property space behind Montreal and Riga respectively.

New single dose sachet for cough relief on the go
Benylin is launching a new single dose cough syrup sachet for a convenient and effective remedy when you're on the run.


Summer collection launch offers bags of choice
The creative minds behind Belgium-based Hedgren Bags and Travel Gear have been jetting around South Africa this week for launch the brand's latest summer collection - much to the delight of local designer bag connoisseurs.


Tougher times fail to dampen Distell spirits
[Thabang Mokopanele] Africa's largest wine and liquor maker, Distell, expects to show continued growth in revenue and earnings, but at more modest levels because of the slowdown in consumer spending in South Africa and globally.

Distell full year diluted HEPS up 21.2%
Bolstered by a well-balanced and well-protected suite of compelling brands across the pricing spectrum and broader and stronger global distribution networks in developed and developing markets, Distell has once again shown its resilience to a global contraction in spending to report solid revenue and earnings growth for the year to 30 June 2008.

Steenberg releases limited edition maiden Magna Carta 2007
Steenberg Vineyards has announced the release of the maiden vintage of its anticipated icon white blend, Magna Carta 2007. This limited edition vintage blend of Sauvignon Blanc and Semillon was awarded five stars in Platters' Guide 2008.


Free petrol incentive from Mango
Mango airlines and fuel giant Total are teaming up to give away petrol in a South African aviation first. In a gesture to ease some of the pressure consumers feel when filling up their cars, the airline will, until 15 September 2008, provide each guest travelling on any of its routes with a R20 fuel voucher redeemable at any Total service station nationally. A return flight will secure R40 in fuel vouchers.


EA strikes softer tone in Take-Two buyout talks
[Jeff Meisner] The dance between two of the biggest players in the video games sector continues, and it's taking on a new tone.

Get Fresh-Fresh with Clorets! - Cadbury South Africa
Well-loved chewing gum brand Clorets has introduced another fresh minty flavour - Arctic Mint - to the two-piece pack range.


Whirlpool SA appoints new MD

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Whirlpool Corporation, a leading manufacturer and marketer of major home appliances, has announced the appointment of Stefan A. Egli as the Managing Director of Whirlpool South Africa. Currently based in Austria as the Regional Director of the Central European division, Egli will be relocating to South Africa with his family to start his new position on the 1 October 2008.



Consumer research
Rich feel the pinch
The spending power of middle and upper-class consumers has plunged while lower-class consumers have more spending power, research by Cadiz shows.

Search sites edge out portals in customer satisfaction
[Erika Morphy] USA: It's rare to see Google command anything less than a large presence in just about any given e-business study these days, and the latest annual American Customer Satisfaction Index (ASCI) from the University of Michigan is no exception: ACSI scores for e-business rose 5.5% to 79.3 on ACSI's 100-point scale. That jump can largely be attributed to Google's own 10% climb to a score of 86.

Misunderstanding the black target market in SA
[Nokuthula Radebe] During the 14 years of South Africa's democracy, the country has changed considerably in terms of the mindset, ambition and beliefs of its citizens. Many marketers and advertisers have been tweaking their messages to accommodate the changing times.


In praise of online advertising
[Josh Chasin] In my last Metrics Insider column, I wrote about the question of how advertising works. The column generated some great comments, and I got some very thoughtful responses via email. This week, I want to revisit the topic, and perhaps amplify a few points.

Investigating Zululand's viability as a shopping destination
How economically viable are the outlying regions of Richard's Bay and Empangeni in Zululand? The Newspaper Advertising Bureau (NAB) commissioned Freshly Ground Insights (FGI) to take a look at grocery shoppers in Zululand's eSikhawini, Ngwelezane, Nseleni and Macekane.

Savvy sales says target teachers
According to a leading US-based research company, Market Data Retrieval (MDR), which carries out research into direct sales and marketing solutions, educators in the US are a market that sales executives should target.


Corporate Social Investment
Jet announces regional community award winners
Southern Africa's premier grassroots awards programme, the Jet Community Awards, has honoured four outstanding community-based organisations from Gauteng and North West in the first leg of the awards regional winner announcements.


Can you CANstruct this?
The annual CANstruction Competition is yet another initiative by Collect-a-Can to encourage young people to be actively involved in the elimination of litter by collecting and recycling used beverage cans. This year's competition is up and running and schools countrywide have taken up the challenge.


Social media to rescue Jail4Bail campaign?
[Eve Dmochowska] Gerhard Pieterse, the executive director of Autism Western Cape, has committed himself to voluntary imprisonment as a fund-raising exercise in support of autism. With the goal of reaching R1 000 000 in raised funds, initially, the marketing of Jail4Bail has been much as you would expect: using traditional press releases, and relying on conventional media to spread the word.

Swartland conservation project shows results
Funds donated to the Western Cape Raptor Research Progamme (WCRRP) from the Eagle Crest/Aquila Game Reserve Conservation Fund, a joint venture between Swartland winery and Aquila Game Reserve, are proving their worth.


Bakers Mini Cricket hits the road

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The Bakers Mini Cricket - heartbeat of South African Cricket road show will kick off at Parkview Junior Primary in Gauteng on Friday, 29 August 2008. The interactive show will travel around the country visiting primary and pre-primary schools to educate young boys and girls of all cultures and backgrounds about the game of cricket, health education - such as the benefits of a balanced healthy lifestyle, exercise and portion control - and the importance of tolerance, acceptance, self respect and respect for others. The road show, presented by Zinto Marketing, aims to encourage children, through a mixture of dance, music and the introduction of funky new Bakers Mini Cricket characters (who are set to become integral icons of the programme), to play sports as it has numerous health benefits and also builds self esteem and social skills such team work, discipline and sportsmanship. The launch of the show follows the successful 25-year celebration in May which earned the programme a place in the Guinness Book of World Records for having the most number of children playing cricket at one time.



e-Commerce
eBay sets bargain basement fees for larger sellers
[Erika Morphy] eBay has instituted a fee schedule that allows sellers of fixed-price items to list a product for 30 days - in many cases, multiple quantities of that product - for just 35 US cents.

An e-tailer's guide to surviving the down economy
[Daniel Meyerov] Small business is under fire - and increasingly, it is the small business website strategy that is being relied upon to create an effective defense.


Exhibitions
Propak heads back to the Cape
Propak Cape, the trade exhibition focusing on packaging, food processing, plastics, printing and labelling, will take place at the Cape Town International Convention Centre (CTICC) from 14 - 16 October 2008. It will be supported by a full programme of conferences running alongside the expo, focusing on topical issues that will be of benefit to those involved in these industry sectors.


Franchising
Fiat scoops dealer award
The success of the Fiat Group in South Africa's commitment to improved service levels across the board has been acknowledged in the latest National Automobile Dealers' Association (NADA) Dealer Satisfaction Survey.


Health & Safety
Campaign to help public safely dispose of old, unused meds
During National Pharmacy Week from 1 - 7 September 2008, pharmacists countrywide will assist consumers in getting rid of old and unused medicine in a safe and responsible manner. This is an excellent opportunity to spring-clean medicine cabinets and dispose of old medicines that accumulated during the winter months.


Japan demands probe into cause of nano flame-outs
[Erika Morphy] Several incidents of iPod nanos bursting into flames have created consumer jitters in gadget-happy Japan. Apple is downplaying the problem, pointing out that no major injuries or damage have been reported. The problem is due to defective batteries, the company said, and only a tiny percentage of the devices have caught on fire.


Hospitality
SA wine industry gears up for 2010 tourism rush
Western Cape wine estate, Boschendal, is bracing itself for an the onslaught of tourists travelling to South Africa for the FIFA 2010 World Cup which kicks off on 11 June 2010. Two television crews from the BBC and Mexico recently visited the vineyard for documentary programmes being made on South Africa's 2010 preparation, and both teams highlighted the degree to which the Cape winelands will be in the spotlight over the period to and during the World Cup.



Import/Export
Uganda to host first Africa honey show
Uganda is to host the first honey exhibition in Africa to raise awareness about investment opportunities in honey trade.

Zimbabwe: Duty waiver makes food cheaper
Harare: Zimbabweans who have become dependant on cross-border forays to source necessities heaved a collective sigh of relief when the government decided to suspend import duty on essential food and non-food items.


SA, Turkey solidify economic relations
[Bathandwa Mbola] South Africa and Turkey have sought to strengthen their bilateral political and economic relations at the First Turkey-Africa Cooperation Summit in Istanbul on Wednesday, 20 August 2008.


Informal Retailing
Informal traders get tailor-made insurance
The South African National Retail Alliance (SANTRA) in partnership with Smartcall Insurance Administrators launched South Africa's first Funeral Membership Plan for informal traders this week. The plan is the brainchild of SANTRA President Livingstone Mantanga, a seasoned leader and campaigner for the rights of street traders and hawkers.


Packaging
Pork company first to use DNA traceability for packaging
USA: Nature's Premium Brand, a leader in premium, all-natural fresh pork, is the first North American pork company to track DNA for reliable and accurate traceability back to the farm where the animals were raised. Nature's Premium will use IdentiGEN's DNA TraceBack system, a USDA Process Verified, DNA-based traceback system, for indisputable product verification.

Call for entry: Name that icon
The Glass Recycling Company's intrepid new hero is without a name. So this South African national organisation, responsible for facilitating the recovery of waste glass for recycling, is calling all creative minds to help with the naming of its mascot.



Regulatory
P&G files suit against over similar shampoo packaging
[Linda Casey] The Procter & Gamble Co. (P&G) tells private label manufacturer RNA Corp. to keep its distance from Clairol Herbal Essences shampoo's intellectual property.

China takes its hammer to iTunes
[Erika Morphy] China is butting heads with a new antagonist: Apple's iTunes music store. The government closed off access to the popular website in the country, apparently in response to reports that dozens of Olympic athletes were among those who had gone there to download an album promoting freedom for Tibet.

Lawsuit takes a swing at Wii motion controller
[Jeff Meisner] Japanese video game giant Nintendo has been hit with a lawsuit alleging patent infringement.

Are business methods patentable?
The US federal courts have embraced various interpretations of patent law as it applies to business methods over the years. With In re Bilski, heard 8 May, the court again took up the issue, and its ruling will have a major impact on patent law, writes Greg Reilly of Morrison & Foerster.


Retail services
Selling online to industrial buyers overseas
[Karen E. Klein] In a tough economy, businesses are seeking new channels for their products. Industrial suppliers can find a willing marketplace online, but they need to consider their potential clients' needs when designing their websites.

Customer wows can beat economic woes
[Fiona Ross] Adopting a customer-centric approach can be a winning business model in tough economic times.

The customer loyalty myth
[Erika Morphy] Do loyal customers translate into steady sales or profits? Intuitively, the answer should be yes - and indeed, customer loyalty is a significant metric by which companies rate their performance. However, there a few problems with the concept of customer loyalty and a corporate strategy to develop it, according to Esteban Kolsky, practice leader with eVergence.

Advertising essential in tough economic times
[Solly Mokgehle] Cut back, trim down, reduce, reduce, REDUCE! In tough economic times, we are bombarded with a barrage of messages about how we should be examining our expenses, cutting back on everything but the essentials and saving money to survive.


Outdoor signage contract to benefit Tshwane retailers
The Tshwane Street Furniture Consortium, comprising Primedia Outdoor and Street Pole Ads, has inked a R69-million, ten-year contract with the Tshwane Metropolitan Municipality to provide new directional street name signs.


PrimeStudio launches in KZN

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Primedia Lifestyle, known for its innovative shopping centre marketing campaigns, has recently launched a highly interactive new feature, PrimeStudio KZN, as a means of extending what has already been a success in Gauteng, Cape Town, Mpumalanga and Transkei, through to the east coast. In order to meet the demand for consistent creative solutions in the region, PrimeSudio KZN is headed by creative guru Mark Powell. The company offers through-the-line solutions that include brand development and strategic positioning, with the aim to encourage greater one-on-one interaction between shopping centre marketers and the design teams in the region, resulting in seamless shopping centre marketing campaigns. PrimeStudio KZN will be housed at Gateway Theatre of Shopping and will not only service Gateway, but other centres within the province.


In-store cart campaign to help fight colds and flu
Icon Media has secured an advertising contract with Bayer Consumer to promote its cold and flu fighter, Cal C Vita via branded shopping carts in select Checkers Hyper outlets nationally, spanning a fleet of 25 carts serving as in-store billboards. The two month campaign features bright orange creative applied to the imported racing car carts, which reads ‘Fight colds and flu this winter, Cal C Vita, cold and flu defence'. The trolleys provide unique brand reinforcement via a fun, colourful and impactful medium during the seasonal immune defence shopping experience. “Annually, Checkers Hypers' see 129,558,763 sale transactions taking place across just 25 stores. High foot counts through these major retail chains means high reach and frequency for advertisers whilst the mall owners receive the carts at no cost, and benefit from a significant portion of the media rental profits,” says Andrew Kramer, Icon Media MD.
- ActivRetail


Retailers
Kenyan retail supermarket now in Rwanda
[Carole Kimutai] Kenyan retail supermarket chain, Nakumatt opened a branch in Kigali, Rwanda, officially opening its doors last weekend as part of its campaign in reaching the Pan African market.


Massmart rolling out more stores
[Thabang Mokopanele] Retail group Massmart is rolling out more stores as it continues to grow sales despite an economic downturn, by offering low-cost, wholesale basic foods and consumer goods.

Truworths wears smile in difficult conditions
[Thabang Mokopanele] Clothing retailer Truworths International has bucked the trend of slower retail sales by posting a 16% rise in sales to R5,65bn.

Abil confident Ellerines will deliver value
African Bank Investments Ltd (Abil) says the reconfiguration of its Ellerines furniture business, including its financial services activities, is proceeding within expected timeframes and it remains confident of its ability to deliver value to customers and shareholders.


Security
Woolies prioritises safety during Saccawu march
As SA Commercial, Catering and Allied Workers Union (Saccawu) gears up for a planned protest against Woolworths in Johannesburg today, 21 August 2008, the retail giant says that while it recognises the right of the union to organise its members and embark on such action, it will ensure that the protest causes minimal disruption to customers and employees. “Woolworths priority is the safety of staff and customers. As the union embarks upon industrial action, this will be our key priority,” said Zyda Rylands, chief operating officer, support services. “I know that Saccawu will support the need for a peaceful protest.” Woolworths maintains that it will give the union appropriate recognition once they have demonstrated that they have sufficient representation. For more, see IOL report.


Supply chain
Ekurhuleni women in agriculture to fight poverty
[Gabi Khumalo] The Ekurhuleni Agricultural Summit, which opens on Tuesday, 26 August 2006, will be used to re-evaluate women's role in ending poverty and creating more jobs in the sector. Ekurhuleni Metropolitan Municipality spokesperson Zweli Dlamini said they wanted to reposition agriculture as a sector that can provide viable economic and growth opportunities rather than being a merely subsistence sector.


Technology
Digital TV set to reach 274 million households in Western Europe and the US by 2012
[Chris Khouri] Digital television services are experiencing strong growth in Western Europe and North America as analog switch-off looms and consumers demand additional digital services.

Plan B for Toshiba: The low-cost road to high definition
[Chris Maxcer] After losing the high-definition DVD format war to Sony's Blu-ray, Toshiba is digging in around the standard definition DVD market. The company has launched a new upscaling DVD player, the XD-E500, which promises to bring standard DVD quality closer to high-definition (HD) than ever before.


Galleries
Bell's Night of the Stars

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Baileys Fashion Weekend

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SA's first Retail Advertising Conference

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Durban gets a taste of Good Food & Wine

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More...  
 

Events to diarise
Propak Cape - Cape Town, 14 October
Propak Cape provides an opportunity to meet with visitors to further the interests of their respective retail businesses.
 
Natural and Organic Show - Cape Town, 17 October
The Natural and Organic Products Exhibition caters for environmentally aware, intelligent consumers and trade representatives looking for sustainable solutions to suit their changing life style and work style requirements.
 
Customer Feedback Conference International Quality and Productivity Centre - Johannesburg, 18 November
A three-day conference ensuring effective relationship building to improve customer loyalty, customer experience and customer satisfaction.
 
 

Jobs offered    Specialising in Media Sales, Advertising
and Marketing placements
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  • Sales Representative - Bryanston
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    Quotes
    "It is better to have it and not need it than to need it and not have it." - Gerard Patrick Roeling
    "You now have to decide what 'image' you want for your brand. Image means personality. Products, like people, have personalities, and they can make or break them in the market place." - David Ogilvy
    "If you don't believe in your product, or if you're not consistent and regular in the way you promote it, the odds of succeeding go way down. The primary function of the marketing plan is to ensure that you have the resources and the wherewithal to do what it takes to make your product work." - Jay Levinson
    "You can say the right thing about a product and nobody will listen. You've got to say it in a way that people will feel in their gut. Because if they don't feel it, nothing will happen." - William Bernbach
    "If you're not serving the customer, you'd better be serving someone who is." - Karl Albrecht
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