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Africa's retail news resource for the industry! 13 Oct 2008
Retail, Associations, Banking & Finance, Brand news, Cold chain, CSI, Distribution, e-Commerce, Exhibitions, Franchising, Health & Safety, Hospitality, Import/Export, Informal Retailing, Logistics, Manufacturing, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Research, Retail services, Retailers, Security, Shopfitting, Supply chain, Technology, Training.

Getting to know you
Nando's first US branch in Washington, DC
I was engaging in some retail therapy at a local store in a suburban Cape holiday beach town near my home last week when I was collared by one of the members of staff looking for some marketing insight. Apparently I epitomised their new market focus: not a teeny bopper, and not "er... almost dead". He wanted to know whether I felt comfortable shopping there - as in, were there items I found to my taste, or did I find the lines "too old"? He explained that they were starting to fill the gap between the young surfer gear and older polyester granny garments with the introduction of some new lines. Now, going off on a tangent here (but I promise it winds back to my point), the new Nando's ad is getting its fair share of down-in-the-mouth commentary on our message boards. One being: "What happened to Nando's being the social commentary we have come to love? I think it is a big move away from the innovative finger-on-the-pulse of the nation strategy...." I, for one, won't share my personal views on the ad - my sense of humour being as dark and base as Naomi Campbell's foundation - although I did find it typical of Nando's brand of seeing-eye-dog-walks-blind-granny-into-pole humour. So, while some locals will laugh hysterically and others will argue that Nando's has deviated from their original strategy, I reckon this ad may well, on a whole, go down a storm in Nando's new target market in the US. As the marketer I chatted to was saying, it's all about getting to know your markets (however diverse) and bridging the gap. Sometimes it works first time, sometimes it takes longer - as for the ad, I'll let you decide.


Shan Radcliffe, Retail editor
All retail news to: retailnews@bizcommunity.com
Responses to this column welcomed in our new online editor's column archive.

Headlines

Retail
Retail revival is still some way off
[Loyiso Sibali] August retail sales figures are expected to show the sector remains deeply in the negative, and building-approval statistics are set to continue highlighting the weakness in residential investment.

New mall brings wave of optimism to JBay
With almost a month before the opening of one of the biggest shopping malls in the Eastern Cape, developers of the Fountain's Mall in Jeffery's Bay are geared up for an imminent expansion of the next phase following the tremendous success attained from the initial stage of development.

Woolworths workers storm through store
Hundreds of protesting Woolworths employees stormed through an outlet in Johannesburg's CBD intimidating employees and assaulting a truck driver, police said.

Amalgamated to cash in on SA's health
[Tamar Kahn] Amalgamated Healthcare is planning an exclusive deal to roll out Holland & Barrett health stores in SA.

Shoppers of the world, unite!
As retailers quake in recession, now is time to demand better services, prices and clever ideas.

Retailers are facing a subdued festive shopping season
[Thabang Mokopanele] Retailers face a subdued festive season this year with squeezed consumers likelier to buy affordable items than luxuries.

Ice age hits Cape Town
Boasting over 50 flavours of your favourite Gelato ice cream together with the best imported Hausbrandt coffee, newly launched ice-cream and coffee parlour, Icezeit, says it boasts the kind of European pedigree that will make it one of Cape Town's must-taste delicatessen destinations.


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Associations
Obesity in children becoming a worrying fact - The Heart and Stroke Foundation SA
[Ayesha Seedat] Obesity Week runs from 13 to 17 October 2008. Obesity is now recognised as a major public health problem in many countries like Australia, America, UK, Mexico, Brazil as well as South Africa. Worldwide statistics show that 22 million children under the age of five are overweight.


Banking & Finance
SA interest rates anchored amid global turmoil
[Michael Appel] The current global economic turmoil has been cited as one of the reasons Reserve Bank Governor Tito Mboweni has left the repo rate unchanged at 12%.

Dow Jones average dips more than 7% on panic sell-off
NEW YORK, USA: The Dow Jones Industrial Average dipped more than 7% on Thursday as panic sell-off dominated markets.

Unprecedented move to prop up the UK banking system
[Datamonitor] Treasury moves to inject trust, as well as liquidity, into the UK banking system.

SA markets faring better than other developing countries
[Michael Appel] In the midst of the global economic crisis, South Africa's markets are faring better than most other developing nations, having dropped 7% on Monday compared to developing nations sliding 10%.

Opportunity knocks for big pharma in credit crunch
[Dr. Chris Phelps] The primary consequence of the credit crunch for non-financial companies is the loss of access to cheap debt.

EU finance ministers to coordinate responses to financial crisis
European Union (EU) finance ministers agreed on Tuesday to coordinate their responses to the escalating global financial crisis.

Financial services shoppers move online
Among people with internet access intending to acquire a financial product in the next year, there is an 87% chance they will research their products of interest online beforehand.

Wes is best
According to the results of a recent survey, WesBank remains the best large company to work for in South Africa.


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Brand news
This bag will brake, won't break
Samsonite's functionality and innovation have been combined to make the Pro-DLX Travel range a great choice any trip you care to make.


You can be a Mighty Mum
Time-stressed mothers, as well as primary care-givers, can now delve into 528 glossy pages of empowering information spanning topics from beauty, style, finance, food, nutrition, legal advice, safety, security and so much more, thanks to a Pick n Pay initiative.


Wal-Mart reports softening US sales
US retail giant Wal-Mart has reported a slowdown in its US sales growth in September and predicted weaker results in October.

Lesotho added to Engen's African acquisitions
Engen Petroleum Limited, a South African refined petroleum product company, has finalised its acquisition of Shell International Petroleum Company Limited's downstream business in Lesotho. Engen's footprint in sub-Saharan Africa now extends to 17 countries outside South Africa.

Unveiling Chris Kelly's maiden Delaire vintage
Delaire, the Stellenbosch boutique wine estate perched high on the crest of the Helshoogte Pass, is celebrating the completion of its new state-of-the-art cellar with the release of a trio of new terroir driven wines.


German cough syrup now available in South Africa
Prospan Cough Syrup is an internationally tried and tested medicine now available in South Africa.


Mall walks the walk - and wins
Canal Walk shopping mall has won the award as Cape Town's best shopping centre.


Mexican flair stops shoppers - General Mills South Africa
Sombreros and tequila, tacos and red chillies are popping up in the kitchens, TV rooms and dining rooms of more and more South African families. Why? Because Old El Paso makes it even easier to make every meal a fiesta of Mexican flavour. During this family fun brand's latest promotion, it's more cost effective, too.

Prizes worth R75 000 up for grabs in Pillsbury Bake-Off Contest - General Mills South Africa
South Africa's kitchen divas are set to compete for prizes worth R75 000 in the Pillsbury Bake-Off Contest, a national competition open for entries now.

P.S. invites South Africans to ‘speak yo soul' - Cadbury South Africa
Confucius said that “words are the voice of the soul”. South Africa's second favourite chocolate brand is inviting South Africans to give voice to a few carefully-chosen words and ‘speak yo soul', in an interactive and lively promotion that promises to get the country talking.


Have you ever tasted bubbles as they melt?
Aero has just launched its most delectable variant yet; Aero Caramel. Now available, the new taste delivers the trademark milk chocolate with an aerated centre topped with smooth silky caramel. It's available in all major supermarkets and convenience stores and you can expect to pay around R7.



Corporate Social Investment
Edcon sponsors breast cancer awareness
Edcons' lingerie store Temptations is the premier sponsor of the Journey of Hope Breast Cancer Ride 2008 to promote awareness of breast cancer to urban and rural women across South Africa. As part of its commitment, Temptations has pledged R500 000 in support of the campaign, which is represented by 12 survivors of breast cancer who are doing an eight-day motorcycle journey from Johannesburg to Cape Town, 10 - 18 October 2008, in a cavalcade made up of Eagle Wind Harley-Davidsons and Hummers to spread a message of hope and encouragement to cancer victims and survivors throughout South Africa. The Journey of Hope includes a national fundraising campaign to cover the costs of 12 reconstruction operations for breast cancer patients who might not otherwise be able to afford it.


e-Commerce
PayFast, SA's answer to PayPal
South Africa finally has its own online PayPal-like service for providing online shoppers with a safe credit card-like experience for making payment using Internet banking (EFT). PayFast, an initiative from BidorBuy founder Andy Higgins that came out of beta testing at the beginning of September 2008, is already being used by a number of South African online merchants.

The ultimate online shopping experience, Part 1: strategy and design
[Julian Chu] The retail marketplace has become intensely competitive, as retailers increasingly compete across traditional segment boundaries, brands expand their direct-to-consumer channels, and consumers exercise their growing power to seek out the best value for their buck. In addition, consumer expectations are on the rise, as they continue to have rich and immersive experiences elsewhere on the Web.


Exhibitions
Excitement mounts for car show
The inaugural Johannesburg International Motor Show takes place against an interesting backdrop: the South African industry is adapting to immense challenges on a retail level, while simultaneously preparing itself for the future under the recently-announced Automotive Production and Development Programme.

Oz heart-throb Curtis Stone, one of the star attractions at Good Food and Wine Show - Cape Gourmet Wine Show
Australian heart-throb celebrity chef Curtis Stone, who works in America and is a bigger name than Jamie Oliver, is one of the star attractions at this year's Good Food and Wine Show at Coca-Cola Dome, Northgate, from 30 October - 2 November.


Go organic or go home
The Natural & Organic Products Exhibition kicks off at the Cape Town International Convention Centre for the weekend run, starting on Friday, 17 October 2008. Some of the highlights at this year's expo include the 'Love Fresh Love Local' selection of locally grown and processed foods that supports community development, as well as the eco fashion extravaganza No Kak 2008. Visitors can check out the daily fashion shows and vote for their favourite designs. Other notable features are the Organic Wine Lane and the Conscious Cooking Corner, where guest chefs will demonstrate how to incorporate healthy food and kitchen habits into the everyday diet. The doors to the expo open at 10am on all days and entry costs R50. For more information and the event line-up, visit: http://www.naturalandorganic.co.za/


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Health & Safety
No need for melamine contamination concern - CGCSA
The mere presence of melamine in foods does not indicate that the food is contaminated, the Consumer Goods Council said earlier this week.

Read those instructions - and follow them!
Checks find that improper cooking of poultry products - often because the instructions were not followed - has been linked to 32 cases of salmonella in the US.


Hospitality
Foreign investors show interest in KwaZulu-Natal development
DUBAI: Much international interest has been generated around the proposed multi-billion US dollar entertainment and mixed-use development planned for the KwaZulu-Natal North Coast. KZN Premier Sibusiso Ndebele, King Goodwill Zwelithini, and provincial Director General Kwazi Mbanjwa, are attending the world's largest business-to-business real estate investment and development exhibition to promote the development which will be built in the Macambini area.


Import/Export
Japan, China approved as once-off ivory importers
The Convention on International Trade in Endangered Species (CITES) Standing Committee has confirmed Japan and China as suitable importing countries for South Africa's stockpiled ivory.


Packaging
Mon dieu! French winemaker chooses PET bottles for fine wines
French winemaker finds marketing success in PET bottles as alternative packaging that helps it sustain a commitment to environmental protection.


The creative brief: your blueprint for great package design
Package design projects need parameters and expectations clearly defined.

Study finds next generation will want better labelling
US food execs urged to step up or be left behind in consumer-controlled future; 'Youtube Generation' will demand accountability, sustainability and transparency from food manufacturers and marketers.

How to know whose opinion to trust on a package design project
Design always creates floods of opinions, but you need to filter them.

Peanut butter shrinks from being second
Nola, a division of Foodcorp (Pty) Ltd, has relaunched their Yum Yum peanut butter range with a fun fresh new look using the latest technology and packaging innovation... it reckons it will be the first brand in the spread category to introduce the latest advancement in packaging, the shrink sleeve jar.



Promotions
Something special for Gauteng's wine lovers
RMB WineX - said to be an 'absolute must' on the Johannesburg wine calendar - takes place on Tuesday 28 to Friday 31 October. Now in its 9th year at the Sandton Convention Centre, one of South Africa's premier wine festivals will present a new face to the country's wine lovers when the new-look décor designed for 2008 is unveiled.


Sports brand sets sail
PUMA, reckoned by many to be one of the world's definitive sports lifestyle brands, will introduce their Sailing Lifestyle collection during the Volvo Ocean Race in November. This new sailing collection consists of apparel, footwear and accessories for sailing and lifestyle wear. The Volvo Ocean Race stopover takes place at the V&A Waterfront in Cape Town from 3 to 15 November 2008. Keep your eyes peeled for PUMA's Volvo Ocean Race yacht and the re-start party on 15 November. For further information contact PUMA on (021) 551 0832.



Research
US consumers less confident
BIGresearch, a leading US-based online market intelligence and Internet powered marketing research company, has just released a report showing US consumers remain concerned about many issues relating to the present state of the US economy.

What's in a name?
[Kory Kredit] For those of you old enough to have watched the '70's television classic, "WKRP in Cincinnati," you will remember the straight-laced, bumbling and insecure newsman from the lowest-rated radio station in Ohio...

FNB/BER index shows recovery in consumer confidence
After plunging by a cumulative 28 index points during the first half of 2008 (from +22 during 07Q4 to -6 during 08Q2), the consumer confidence index (CCI) report, released by First National Bank (FNB) and the Bureau for Economic Research (BER) yesterday, recovered somewhat during 08Q3, increasing by 5 index points to -1.

Apple grabs bigger slice of smartphone pie
[Walaika Haskins] Sales of Apple's iPhone 3G have given the hardware maker a six-point boost in the consumer smartphone market, from 11% to 17%, according to a new report from The NPD Group, a consumer sales tracking firm.

From Russia with dent
[Jugoslav Stojanov and SAVRALA] Russian car lease market has ingredients for large expansion, but problems persist. And the South African experience?


Retail services
Keeping customers in a crummy economy
[David Bogoslaw] Companies that rely on consumer dollars are pulling out the stops in an effort to keep their customers coming around while the economy slips into dark times. They're turning to incentives - from freebies to discounts - to retain their customers.

How would you like a new SIM card?
Losing your cell phone or having it stolen is a huge inconvenience.

Consumer or customer?
[Denis Pombriant] USA: The fast changes the economy is experiencing are triggering a shift in buyer behavior. You won't see as many consumers, known for their ability to ingest mass quantities. What you'll see in their place are customers, a wary species known for its ability to sniff out value. CRM can no longer continue feeding the beast of yesteryear.

Online customer service: Mixing live talk with automated tech
[Robert Williams] USA: Last year's online shopping season surpassed US$29 billion in sales, up a full 20% from the previous holiday. More consumers did their shopping online than any holiday season before, due to the convenience and increasing popularity of the Internet as a way to get too many things done in too little time.


Retailers
Ever thought of paying your ISP with sugar?
Ever thought of paying for your internet services with sugar? It's possible but only in Zimbabwe. South Africa's 702 talk Radio reported that a leading internet service provider in the troubled African country, Zimbabwe Online, announced today that it will be accepting groceries as payment for services.


Security
Cisco: IT managers neglect employee security threat
Employees' bad habits, such as using company computers for personal business and allowing others to use company-owned technology unsupervised, cause a glaring gap in security that goes unnoticed by many IT managers, according to a study conducted by Cisco Systems.

Blacklisting and whitelisting: Colour-coding security
Blacklisting is a common security tactic - information about a known bit of malware is distributed, and endpoint security tools search and destroy. Conversely, another approach called "whitelisting" only permits known safe programs to run at all. It can be a sturdy layer of extra protection; however, the system lock-down that sometimes results can be a pain for IT admins to manage.


Supply chain
Shortage of seeds threatens small grain production in Zim
The unavailability of seeds is threatening to hamper plans by the Zimbabawean government to promote the production of small grains this farming season.

Motlanthe: Scientists must find ways to ensure food security
[Bathandwa Mbola] President Kgalema Motlanthe has urged several African scientists to come up with new technological advances in their field to tackle high food prices.


Technology
Supermarket reaps benefits from electronic shelf labelling
MCC SUPERSPAR, one of the leading supermarkets in Klerksdorp, has reported multiple benefits, including reduced costs, since the introducing Pricer's electronic shelf labelling system, supplied and installed by XON company Skydirect in February this year.


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