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Africa's retail news resource for the industry! 26 Jan 2009
Retail, Associations, Banking & Finance, Brand news, Cold chain, CSI, Distribution, e-Commerce, Exhibitions, Franchising, Health & Safety, Hospitality, Import/Export, Informal Retailing, Instore, Logistics, Manufacturing, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Research, Retail services, Retailers, Security, Shopfitting, Supply chain, Technology, Training.

Fluxom and jet some
With the global economy caught in what could be seen as a rip tide of flux, with yo-yoing fuel prices and companies jettisoning employees faster than you can say "flotsam", it's a wonder consumers aren't suffering more sea-sickness amid the turbulence of promised price-cuts while costs actually seem to be rising. Shoprite has been the most vocal with its recent campaign touting price-cuts - committing to put the estimated R27 million it's now saving on fuel, since the decrease, back into the pockets of its customers. Though apparently Shoprite isn't the only one, with Absa Asset Management Private Clients analyst Chris Gilmour reporting that Pick n Pay has also been 'quietly passing on price relief'.

However, Ikbal Kolia is far less than impressed, and makes his sentiments known in his Sunday Times piece "Why applaud the inflated greed of retailers?". And 'Squire', a Bizcommunity forum commentator, pointedly asked the question I'm sure has been running the gauntlet in the minds of most consumers watching the state of price fixing and collusion: "With the number of companies admitting to various price fixing irregularities and the paying of fines, has anybody noticed a reduction in the price of bread, milk, candles etc. Surely this should happen somewhere??"

Beyond the drop in the petrol price, I can't say I've noticed much change bar the deflated cost of some already over-inflated luxury items. In fact, I was a little horrified to pull out my weekend grocery shopping receipt to find that I actually paid R14.99 for 2 litres of milk, having bought the same product from the same supermarket for R13.99 only about a week ago. So much for decreases. It begs the question: When are we actually going to see these reductions come into effect? And they'd better think up a more viable excuse than "Inflation is a fact of life, but we're only increasing prices by a mere 10%, and not 25% we could be entitled to..."

At this rate folks, it's cheaper to top up your kids' cereal bowls with Coke than milk. And they say there aren't perks to inflation...


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

Headlines

Retail
Tiger Brands in potential offer for AVI
Food giant Tiger Brands confirmed on Monday that it has made further formal communication with the board of consumer products group AVI regarding a potential offer.

Why applaud the inflated greed of retailers?
[Ikbal Kolia] A reference in the “Good and Bad” section on page 2 [of the Sunday Times] last week referred to the more than excellent increase in turnover made by Shoprite.

Enablis awards shining SA entrepreneurs
Several entrepreneurs from across the country received much-needed financial support yesterday as they became winners of South Africa's largest business plan competition - the R50-million Enablis ‘Business Launchpad'.


Surprising resilience
[Sasha Planting] SA consumers are not willing to shop on credit and incur more debt, but they are spending the cash they have — on very specific items.

Retail trade sales drop 4%
[Michael Appel] Retail trade figures for the three months ending November 2008 have dropped by 4% compared to the same period in 2007, Statistics South Africa (Stats SA) reported on Wednesday, 21 January 2009.

Michelle Obama's inaugural outfit sent a cheerful message of hope
US First Lady Michelle Obama's outfit, worn at the inauguration of her husband on Tuesday, has been applauded as sending a cheerful message of hope and a vote for the American fashion industry.

Gift cards in a gloomy economy: A losing bet?
[Paul Korzeniowski] They may not be the most thoughtful presents in the world, but they sure are convenient. Gift cards relieve shoppers of having to find the perfect size, style, and colour of any item on a shopping list. They also avoid scenarios where what the buyer views as desirable is antithetical to the receiver's outlook.

Charlotte Coetzee bags PnP design competition
Graphic designer Charlotte Coetzee, 24, has taken top honours in Pick n Pay's latest initiative to reduce use of plastic bags. Late last year, the retailer launched a web-based design competition inviting budding designers to submit designs for a new and stylish eco-friendly Pick n Pay bag.



Banking & Finance
Inflation at 6.5 quindecillion novemdecillion percent
The Zimbabwe dollar now seems to have lost all its appeal, and calls for the adoption of a foreign currency to replace the struggling monetary unit and put an end to the country's crippling hyperinflation are becoming louder.

Wall Street plunges as Obama sworn-in
While about two million people gathered in Washington DC to celebrate the inauguration of Barack Obama as new US President, Wall Street plunged more than 4% in New York.

Taxpayers get a two-week extension
[Noughty Maluleke] Taxpayers have been given another 15 days to submit their returns - but the extension applies only to those who are using e-filing to submit their returns electronically.


Brand news
Q4 slaps Samsung with first-ever quarterly loss
Samsung Electronics, South Korean consumer electronics superpower and ostensibly the world's largest manufacturer of flat screen televisions, memory chips and liquid crystal displays, posted its first ever quarterly loss Friday as the global economic slump hit prices and demand for mainstay products.

International acclaim for Constantia Glen vintage
Constantia Glen's third vintage of its Sauvignon Blanc - the 2007 - has been handsomely rewarded by USA's Wine Spectator in the January tasting highlights.


Sony warns of profit loss, gropes for solutions
[Yuri Kageyama] Sony projected it would report its first annual net loss in 14 years Thursday, and Chief Executive Howard Stringer vowed to turn around the company with pay cuts, job reductions and trendier gadgets.

Best Buy to put tenured executive at helm
Best Buy, ostensibly the USA's largest consumer electronics chain, said Wednesday that it has named President and Chief Operating Officer Brian J. Dunn as its new chief executive effective 24 June 2009.

Sony Ericsson reports crushing fourth quarter
[Jeff Meisner] Sony Ericsson is the latest casualty of the global economic slowdown.

Local bubbly gets the nod from American aficionados
[ActivRetail] Stellenbosch wine estate, Simonsig, is paving the way for South African Méthode Cap Classique in the tough USA market with Simonsig Kaapse Vonkel Brut Rosé clinching the venerable 90-point mark in no less than two authoritative wine publications in under three months.


Gaming industry rakes in record $21bn for 2008
Nintendo's dominance of the console gaming market continued in December, according to sales figures collected by the NPD Group. The Wii set a new monthly record as consumers picked up some 2.15 million consoles in December alone. The good news continued for Nintendo; its portable gaming platform, the DS, also set a one-month sales record with more than 3 million units moving off of store shelves.


Chew life with HHP's hot new music video - proudly presented by Stimorol - Cadbury South Africa
Stimorol is proud to announce the release of HHP's (Hip Hop Pantsula) new music video for his hit single “All I need”.



Corporate Social Investment
The role fundraisers play or don't - CSI's changing arena
Non-governmental organisations are run and managed by people whose primary concern is the communities they serve. These individuals are driven by the passion to change lives and to address the socio-economic disparities that still continue to plague our society. Unfortunately, for NGOs to do this, they need funds from a variety of sources: individuals, government and donor foundations and agencies. Not so long ago, the process of acquiring funds was not as strenuous and as competitive as it is today.


Pay online, donate your change
No doubt heeding US President Barack Obama's call for change, global voucher-based online payment solution Ukash has created a system allowing consumers to donate the 'change' generated from shopping online to The Trust, a recently launched local charitable initiative.

Old Mutual, NEPAD Business Foundation invest in Africa
Old Mutual has sponsored R1.5 million to the NEPAD Business Foundation (NBF) and is one of the NBF's main founding partners. Old Mutual operates in six countries in Africa including, South Africa, Namibia, Kenya, Malawi, Swaziland and Zimbabwe and is headquartered and domiciled in London, UK.


e-Commerce
eBay profits sink as transactions dwindle
[Rachel Metz] The ranks of active eBay users continued to swell in the fourth quarter, but the company's gross merchandise volume - the actual amount of business eBay users are doing - sank for the second quarter in a row.

As iTunes goes, so goes the industry
[Ryan Nakashima] Although Apple announced this month that some songs sold on its market-leading iTunes online service would be available for 69 cents instead of the 99-cent tag Apple had insisted on for years, the change won't necessarily put more money into the pockets of music lovers.


Exhibitions
Even more to talk about at Design Indaba
Despite the tough economic climate, Design Indaba Expo 2009 has reported that it has grown with more than 60 new exhibitors and has secured more than 20% extra floor space since 2008. With a month to go until the event, already more than 100 buyers have pre-registered, including 70 international buyers.


Engage brand-conscious consumers at new style expo
[ActivRetail] Brand Xpo 2009 aims to provide brands with the opportunity to engage with consumers in a socio-economic climate that is proving a challenge for new and old marques alike, according to Vital Health Foods marketing director, André Beyers.



Franchising
Pretoria gets a taste of Portugal
[ActivRetail] Portuguese-style restaurant chain, Braza, recently opened its 7th franchise in Menlyn Park, Pretoria, and has introduced an even more mouth-watering menu.



Hospitality
Open for dinner
This month, Kauai, the health food company, is testing a new dinner menu at its Green Point store in response to consumer demand for dinner-friendly fare that reflects global food trends.



Import/Export
SA-Japan partnership forum kicks off in Tokyo
The 9th South Africa-Japan partnership forum, which aims to advance North-South relations between the two countries, has kicked off in Tokyo, Japan.

East African Community members can negotiate trade as a bloc
[Rose Kamau] NAIROBI, KENYA: East African Community (EAC) member states can now negotiate as a bloc in all matters relating to regional and multinational trade following the enactment of the East African Trade Negotiations Act, 2008.


Instore media
World's best retailer - Primedia Instore
Pick n Pay, which has been active in driving instore advertising strategies, has been voted the world's best retailer by international retail organisation, the National Retail Federation.


Manufacturing
What's driving future auto development?
[Jim Offner] USA: Plug-in electric hybrid cars may be the wave of the future, but there will likely be more than one new wave hitting the beach. Autos powered by hydrogen fuel cells, natural gas and biofuels are still in the running. With the build-out of a new infrastructure, a future of many fuels may be in the making.

Fiat and Chrysler join forces
Fiat and Chrysler have signed an agreement to establish a global strategic alliance.


Packaging
News analysis: Despite downturn, these trends will affect packaging
Each new year marks a period of renewal. It is everyone's chance to start over.


Regulatory
LG pushes for Anti-Counterfeit Bill in Kenya
LG is pushing for the enactment of the Anti-Counterfeit Bill into law as a measure to fight peddling of counterfeit goods such as cellphone handsets and associated gadgets in Kenya.

UK background checks up 70% as credit crunch bites
Concerns over job application fraud in the United Kingdom prompts massive increase in staff checks.

Call for input on amending Advertising Code
The Advertising Standards Authority (ASA) of South Africa is calling for comments on amending the Advertising Code of Practice. Send any comments you might have on the code, accessible at www.marketingsa.co.za, directly to the Marketing Association of South Africa (MASA) as the association will be preparing a detailed submission and your views will be invaluable in this process. Mark comments as follows: Comment - Code on Advertising Practice - for attention Bonny Benade - info@marketingsa.co.za. Deadline for comments is Friday, 27 February 2009.


Research
Consumers are looking to enjoy alcohol in moderation
[Matthew Taylor] A new report* from independent market analyst Datamonitor identifies that the majority of consumers enjoy alcohol in a responsible and relaxing fashion.

SA consumers gain glimmer of confidence - MasterCard survey
Following a year of slowing economic growth at home and in the face of an imminent global recession, South Africans remain optimistic about the immediate future of their national economy. This is according to the latest MasterCard Worldwide Index of Consumer Confidence.



Retail services
Retailers pull out all stops to rope in shoppers
[Anne D'Innocenzio] Retail outlets, suffering badly from shoppers' spending shutdown, are beginning to take more extreme measures than simply holding sales.

Best practices in the call centre: Make every contact count
[Pam Baker] It's no secret that customers aren't buying much these days. The economic engines have locked and stalled, leaving businesses everywhere in freefall. While companies around the globe are jettisoning anything they can to slow the descent, none are ditching CRM. In fact, CRM may be the last remaining parachute: a fact realized during earlier turbulence.

Nigerian Marketnomics 2009: Part two
[Franklin Ozekhome] In the fight for survival in the depressed economies, and the battle to stand out and mean more to consumers in the emerging markets, ideas will become the golden salt and superior thinking will take centre stage.


What will the youth get up to in 2009?
[Jason Levin] The traditional media terrain is shifting completely in the Age of the Prosumer. Marketers have a big role to play when it comes to investing in the wellbeing of young South Africa, especially in 2009.


Salesforce and the service cloud
[Denis Pombriant] Last week Salesforce.com introduced its new support concept dubbed "The Service Cloud." I have to say it makes a lot of sense both as a product direction and as a business decision.

Nigerian Marketnomics 2009: Part one
[Franklin Ozekhome] The economic and financial crisis, which started in the United States in September 2008, has rattled markets and economies around the globe. A global shift is taking place resulting in a rebalancing of economic power.


A course with no useless information - enrol now! - Quo Vadis Communications
Well-known marketing communications and training company, Quo Vadis Communications, has unveiled its training schedule for the 2009 year and says it is keeping fees for its courses at its 2008 levels.


Retailers
Shoprite takes lead on costs
[Nicola Mawson] Food and furniture retailer Shoprite, which has boasted of its commitment to put R27m in fuel savings back into consumers' pockets, is not the only retailer passing on savings.

Retail sales under pressure
[Tamlyn Stewart] Consumers cut back on their shopping in November as high interest rates took a bite out of household budgets.

Lewis is ‘star of the show'
[Nicola Mawson] Lewis Group yesterday reported almost flat revenue for the December quarter as furniture retailers' sales fell with the economy slowing.

Lewis reports revenue growth
Furniture retailer Lewis said on Wednesday, 21 January 2009, that its cumulative revenue growth for the nine months ended 31 December 2008 was 5%.

Woolies earnings seen 8% - 13% higher
Woolworths expects headline earnings per share (HEPS) for the interim period ended December to be between 8% and 13% higher than the same time a year ago, it said on Tuesday, 20 January 2009.

New Clicks lifts retail sales
Retailer New Clicks (NCL) reported on Tuesday that its retail sales had increased by 11.1% for the four months ended December 2008.


Technology
The coming video game renaissance
[Derrik J. Lang] Don't hit that pause button just yet. Despite the tanking economy and an increasing number of video game-industry layoffs, many believe 2009 will be a year of evolution for games. The combination of innovative new titles, long-awaited franchise follow-ups and desire for escapism could spawn a gaming renaissance.

New MTN-Neotel network's dramatic impact
[Issa Sikiti da Silva] Once completed and operational, the multibillion rand and 5000km telecommunication network by MTN and Neotel will have a dramatic impact on end users, pricing, supply of capacity, the industry as a whole and Telkom's own priorities, industry watchers and experts told Bizcommunity.com yesterday, Monday, 19 January 2009. MTN SA and Neotel last week signed a historic agreement to build a long-distance fibre optic network, a move that will free MTN from the chains of Telkom's third party transmission provisioning.

Vodacom could link with rivals
[Lesley Stones] Vodacom is likely to participate in a R2bn plan to build a national fibreoptic network, joining its rivals MTN and Neotel in the venture.


Training
Workshop to help protect Intellectual Property Rights in SA
[Nthambeleni Gabara] International Property Rights (IPR) experts will meet on Monday for a five-day workshop that will help South Africa to protect IPR effectively.


Galleries
Green is the new black at Pick n Pay

More  
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Events to diarise
International Networking Week ExecuEdge Consulting - Cape Town, 5 February
An initiative of Business Network International (BNI), International Networking Week is about celebrating the key role that networking plays in the development and success of business around the world.
 
Mega Media Expo CADEK Media - Sandton, Johannesburg, 4 March
Africa's leading media and advertising expo.
 
 

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    "Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders." - Philip Kotler
    "The advertising man is a liaison between the products of business and the mind of the nation. He must know both before he can serve either." - Glenn Frank
    "Life started to make sense to me when I stopped working for an income and started living for an outcome, money started to make sense to me when I stopped working for a living and started to work for a giving." - Brett Fourie
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