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Africa's retail news resource for the industry! 9 Feb 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.

Bottom of the food chain
It's all eyes back on SA retailers to see whether they're actually going to come through with their promised price-cuts now that the petrol price is on the rise again. Pick n Pay's pledged decrease is coming into question after the meeting with their suppliers turned into something of a finger-pointing session - with the suppliers in turn blaming their suppliers (primarily in the packaging sector) for the high costs. More anti-competitive behaviour is rumoured to be the underlying culprit, so further investigation is going to make for some interesting reading. Woolworths, meanwhile, is taking the plunge, claiming it's going to slice and dice the prices of 245 of its products in the hope of attracting the attention of those middle-income shoppers. And so, while some SA consumers are still sitting at the bottom of the corporate retail food chain, the drop in the repo rate is expected to bring some much-needed relief - if not to the table, then to bond balances and those of other fixed assets. And it's a good thing too - what we may not be forking out in car payments may just wind up in our petrol tank after all... But until then, happy savings, folks!


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

Headlines

Retail
Maponya's failures offer lessons for all
The fanfare that followed the opening of Maponya Mall two years ago is now dead.


How "sure" is your brand?
[Bayo Adekanmbi] Consistency of delivery is one of the critical differentiators that make for a reputable brand. It's a product's constancy of purpose to meet consumer expectations at all times, in all places and for all cadres of user-ship profiles. This comes across to the market as uniformity, reliability, dependability or standardised homogeneity.

JD Group faces tough questions
[Nicola Mawson] The Public Investment Corporation (PIC) yesterday abstained from voting to re-elect JD Group executive chairman David Sussman at JD's annual general meeting as this went against its governance code.

Proudly South African fashion livens up the red carpet
[Vivian Warby] The delights of the country's rainbow nation are being emulated in fashion as the Mother City readies for the opening of parliament this morning.

Pick n Pay suppliers in food prices blame game
[Nicola Mawson] Pick n Pay's suppliers — under pressure from the retailer to curb price increases for foodstuffs — yesterday in turn blamed their own suppliers for high prices, suggesting that monopolistic practices were the real culprits behind stubbornly high food prices.

When recession looms...
Recent events have shown just how quickly a recession can come upon us, so it's as well to have a few ideas in the bag so that if and when your company faces problems, you can react positively.

Meltdown creates new global champions
[Naseem Javed] We have now arrived right in the middle of that second half of the hyper-accelerated phase, where western brands start to fall like dominos. As pointed out in my column first printed in 2006, Global image repositioning race heats up, in the US alone hundreds of its world-class brands are being erased. From monster banking to mega manufacturing, some 73 000 stores alone being closed in the first half of 2009, according to the International Council of Shopping Centers.


Car sales slightly up
The year has started off on a slightly more encouraging note for new vehicle sales in South Africa, with passenger car sales up by 6% over December 2008.

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Banking & Finance
Govt considers interventions to protect SA from economic crisis
[Bathandwa Mbola] Government and its social partners are considering various interventions which can help minimise the impact of the global economic crisis on the country.

FNB offers relief in line with rate cut
First National Bank (FNB) will cut its prime lending rate by 100 basis points from 15% to 14%. The new interest rate will be applicable to all new and existing prime-linked loans, including home loans, from Monday 9 February 2009.

Repo rate drops by 100 basis points
[Michael Appel] Struggling consumers have been granted a reprieve with the announcement of a 100 basis points cut in the repo rate by Reserve Bank Governor Tito Mboweni.

New CPI basket ushers in lower inflation figure
[Michael Appel] Statistics South Africa's (Stats SA) new reweighted and rebased Consumer Price Index (CPI) is expected to bring the country's inflation figure down to 7.7% from 8.6% for 2008.

World Bank urges developed countries to do more for Africa
[Bathandwa Mbola] ADDIS ABABA, ETHIOPIA: The World Bank has urged developed countries to start a fund to ensure more resources were available for African countries to develop the infrastructure they need to sustain economic growth.

Debt stress on the rise
The National Credit Regulator's latest quarterly report on the credit bureau statistics has shown a slight deterioration in consumer credit records. This is based on reports submitted to the NCR by registered credit bureaus, in terms of the National Credit Act.

Intl cooperation needed for global financial system reform
[Chen Wenxian] International cooperation, not protectionism, is the precondition for global financial system reform, world leaders and financial experts have agreed at this year's World Economic Forum meeting in Davos, Switzerland.


Brand news
Local kids' clothing brand beats the downturn
Keedo, a local kids' clothing company based in Cape Town, is beating the recession odds by showing an inflation adjusted 20% year-on-year growth for its summer 2008 season.


Panasonic downsizes employee rolls by 15,000 following brutal quarter
[Jeff Meisner] In yet another sign of the worsening global recession, Japanese consumer electronics giant Panasonic More about Panasonic said Wednesday that it will lay off 15,000 employees, or 5% of its workforce, by March. Half of the job cuts will be made in Japan.

Outcome of PnP-supplier pricing meeting - statement
The much-anticipated meeting between Pick n Pay and its suppliers to discuss high food prices took place yesterday, 5 February 2008. While it reportedly turned into something of a "blame game", PnP CEO Nick Badminton said in a statement issued yesterday that it was "a very good start."

Weak holiday showing blasts EA's third quarter
[Barbara Ortutay] Hurt by weak holiday sales and a slew of charges, video game publisher Electronic Arts posted a wider net loss for its fiscal third quarter and fell short of analysts' expectations Tuesday.

Motorola posts miserable Q4 results, ousts CFO
Mobile phone manufacturer Motorola reported yet another disastrous quarter of financial results Tuesday that sent the struggling company's stock plummeting 11% to US$4.03 per share in mid-day trading.

Simba CEO to head up Pepsi SA
Lauren Siebrits, Chief Executive Officer of Simba, PepsiCo's snack business in South Africa, has also been appointed to take over the beverage business, Pepsi South Africa.


Coke dropping 'Classic' tagline from logo
Neither 'New' nor 'Classic', Coke is simply itself again.

Can your pet live longer? - Vondis Holistic Pet Nutrition
Australian veterinarian and author, Dr Ian Billinghurst, maintains that “dogs fare best when fed a natural, unprocessed, raw diet based on bones, meat and vegetables".

Cabernet teeming with cherries

click to enlarge
A mouthful of cherries and prunes supported by a good tannin structure and a velvety smooth texture, is what you can expect from the new Cabernet Sauvignon 2007 vintage just released by Zonnebloem. Made by Bonny van Niekerk, who heads up the red winemaking team at the Zonnebloem cellars in Stellenbosch, this wine has a moderate alcohol level of 13.23% and owes its smooth mouthfeel and solid structure to the 12 months' contact with French oak. The Zonnebloem Cabernet Sauvignon 2007 retails from R60 at leading wine outlets.



Corporate Social Investment
Promoting sustainable development in the Eastern Cape
Unilever SA has partnered with the Development Bank of Southern Africa (DBSA), the Eastern Cape Department of Agriculture, the University of Fort Hare and the Amahlathi Municipality to promote sustainable development through paprika farming in Keiskammahoek in the Eastern Cape.


Red Heart Super 14 Rugby Fund
Red Heart, one of the official sponsors of Vodacom Super 14 Rugby, has formed the Red Heart Rugby Fund which will facilitate donations to a rugby rehabilitation cause, the Chris Burger Petro Jackson Fund.

Pillsbury, Sandton City and Noddy bring Christmas cheer to Reach for a Dream kids - General Mills South Africa
Noddy, the world famous children's character, celebrated his 60th birthday late last year and naturally the festivities were carried out in style. The venue was South Africa's premier shopping centre, Sandton City, where the Fountain Court was transformed into Noddy's ever famous magical toy land.



e-Commerce
What keeps customers up at night: Q&A with author Bob Regnerus
[Blake Glenn] In its early years, e-commerce has largely been limited to items that are common and relatively inexpensive. Bob Regnerus, author of "Big Ticket eCommerce", says that other goods and services can be sold online as well; it just takes a slightly different approach.

Amazon opens game download shop for the casual crowd
Not content to essentially dominate online book sales - not to mention a slew of other merchandise categories - Amazon.com launched a new game download service Tuesday.

Woolworths UK to relaunch as online store
LONDON: Collapsed British retail chain Woolworths will be relaunched as an online store after the century-old brand name was sold to rival firm Shop Direct Group, administrators said Monday, 2 February 2009.


Exhibitions
On tap for international conference
Experiential agency VWV has been appointed by US-based MillerCoors to produce its first annual distributor conference at the Las Vegas Rio Hotel and Convention Centre in March 2009.


Hospitality
What makes a hotel 2010 compliant?
South Africa is under the world microscope and the pressure within the borders to perform is reaching new heights. Will they, or won't they? That is the anxiously asked question on everybody's lips. It is clear to each and every South African and SA business that the benefits of a fortnight of international football tournaments goes beyond the two weeks and strategies have to be set in place to sustain the efforts that are going into enhancing infrastructures of transport, tourism and security.



Import/Export
Revised trade statistics positive for SA
[Michael Appel] South Africa's trade deficit has dropped from R88 billion to R64.5 billion, according to the revised South African Revenue Service (SARS) statistics for trade for 2008 released on Wednesday.


Instore media
GPRS-based point-of-sale terminal launches
Now available in South Africa is Timpa, Psitek's first dedicated point-of-sale (POS) terminal. It works wirelessly via GPRS with a SIM card, and features a built-in antenna and printer as well as a rechargeable battery, making it a truly portable all-in-one POS terminal.


Logistics
Imperial Logistics steps up Broad-Based BEE to Level Four - Imperial Logistics
Imperial Logistics is delighted to announce its new Level Four Broad-Based Black Economic Empowerment (BBBEE) rating received from NERA Verification Agency in December 2008 after a second official assessment and verification. Imperial Logistics also qualifies as a Value-adding Supplier with an enhanced Procurement Recognition Level of 125%.


Packaging
My last words on Coke for a while … maybe
[David Bellm] Yeah, yeah - I know we've been talking an awful lot about Coke lately. But this is pretty interesting.



Promotions
Tapping into 350 years of SA winemaking excellence
The 350th celebration of winemaking in South Africa on 2 February 2009 provides the industry with the opportunity to reinforce its position as one of the New World's oldest wine producers and to celebrate its diverse and colourful vinous heritage.



Regulatory
RIM execs smacked with millions in fines
CANADA: The co-executives of BlackBerry-maker Research In Motion will pay the brunt of about $77 million Canadian (US$62 million) in fines and restitution to settle allegations they participated in a practice known as stock option backdating.


Research
Consumer attitude towards smoking
[Bateleur Khanya] According to a Bateleur Khanya survey conducted in October this year, legislation in South Africa is changing consumer attitudes towards smokers. 56% of non-smokers and 18% of smokers agree with the statement, "People look silly when they smoke."

The way to a kid's tum is through Mum
[Amy Henry] While marketers have long understood that kids are key influencers in their homes, recently we have seen more clients shifting their efforts back to a mother focus. And we've noticed that mothers' criteria for their kids seem to be shifting from what they were 10 years ago, when Just Kid Inc fielded a global study among mothers of kids ages 2-14.

Packaging discussed in report on grocery-shopping trends
Effects of economy, branding trends, and 'early adopter' shoppers examined in a US survey that could hold lessons for SA retailers as well.


Retail services
Mall stalkers: Ads that gawk back at you
[Dinesh Ramde] USA: Watch an advertisement on a video screen in a mall, health club or grocery store and there's a slim - but growing - chance the ad is watching you too.

It's not the data - it's how you use it
[Pam Baker] Many businesses dutifully collect customer data, just as they've been told to do, but they fail to use that data properly. In this economy, no one can afford to suffer the consequences. Data must be managed properly in order to be put to good use.

Engage with your customers
Engaging beyond the enterprise will improve customer satisfaction and service delivery.


Retailers
Woolies cuts prices to attract new market
[Adele Shevel] Woolworths is slashing the prices of 245 items across a broad range of goods from Monday, 9 February.

Country Road leads to Trenery
Woolworths customers can look forward to Trenery, an exclusive range of clothing that will be available in selected stores from August this year.

Satori brings Zen balance to the Mother City
Cape Town's trendy design district, De Waterkant, has a new kid on the block with the arrival of Satori, a contemporary designware store located at The Hudson. Clients can choose from extraordinary items crafted both in South Africa and the East, from ornaments to large sculptures and furniture - picked from the Satori collection or commissioned as a bespoke piece.


Edcon beats economic downturn
[Nicola Mawson] Edcon, SA's largest clothing retail group, said yesterday retail sales increased 9.7% for the quarter to December.

Retailers in no rush to reopen in Zim
[Nicola Mawson] South African retailers have adopted a wait-and-see approach regarding their assets in Zimbabwe, several companies said this week.

New Clicks delists 21.5 million ordinary shares
Retailer New Clicks (NCL) reported on Wednesday, 4 February 2009, that it has cancelled and delisted 21.5 million ordinary shares, but that this would have no financial impact on headline earnings per share.

Petrol price increase disputed
[Siseko Njobeni] South African petroleum retailers have reinvigorated suspicions of the manipulation of petrol and diesel prices, following the announcement of this week's increase in the retail price of petrol despite relatively low international oil prices.


Security
Safety Month to showcase 2010 readiness
[Proffesor Ndawonde] Safety Month, which is marked in February, is to be used to showcase the Eastern Cape's preparations towards ensuring the safety and security of visitors and residents during the 2010 FIFA World Cup.


Supply chain
Explaining the petrol price hike
After six successive monthly decreases in the price of petrol, higher international product prices throughout January have pushed local prices up again in February, by around 60c/litre (cpl). Diesel prices, however, have dropped for a seventh consecutive time.


Technology
Follow the voice of your dreams
“You have reached your destination...” whispers the sultry voice of Kylie, as you take the last turn into your drive. Is it all in your head? No, it's TomTom's new desirable voices* application, which allows you to download your favourite celeb's voice to guide you all the way to your chosen destination.


Tactile tech to intrigue Foschini shoppers
Shoppers frequenting The Foschini Group (TFG) stores could soon have access to the latest touch screen technology and interactive kiosks to check the status of their accounts and browse the latest clothing ranges.

Is Dell dialing up a smartphone?
[Chris Maxcer] Dell may be gearing up to launch one or more new smartphones, possibly based on Google's Android operating system and/or Windows Mobile software.


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