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Africa's retail news resource for the industry! 16 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.

Lovin' it on the ledge
While I get over my shock of forking out over R30 on a Valentine's card that I probably could have made for less than a tenth of the price, the CEO of Educo Africa, Trevor Johnston, is looking to spread a little love in his own special way this week. Regarded as the 'first Coloured South African to climb Mount Everest', Johnston will be taking fundraising to another level - that being from the roof of the SABC building in Sea Point, Cape Town. Johnston plans to spend the week on the suspended portaledge with the aim to raise funds and awareness for the Educo Africa On the Edge campaign to help SA youth from teetering over the verge into lives of gangsterism and crime. See how you can support this ledgendary feat here, or keep updated on Johnston's life on the ledge via his blogspot. As for me, I'll be dangling down to see how well Johnston is withstanding the Cape's merciless winds... So if you're in the area, drop in for a visit and cup of tea or mocktail (non-alcoholic cocktail) in exchange for a donation, and help spread the love. Happy post-Valentine's everyone!


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

Headlines

Retail
Coca-Cola Recycling struts its stuff at Mercedes-Benz Fashion Week
NEW YORK: Coca-Cola Recycling is making green the new black with a recycling programme at the Mercedes-Benz Fall Fashion Week Fall 2009 Collections. Fashion devotees attending the shows will be encouraged to “Give it Back” by recycling their used bottles, cans, glass, aluminum, plastic, and cardboard.

Rip-offs don't fit the credit crunch
[Jacquie Myburgh: Fashioning Business] If there's one thing I've got a nose for, it's a fashion rip-off. And for a long time, a lot of shops have been getting away with murder. You know what I mean: cheap Asian-made imports sporting a label that says: “styled in Italy”, with a price tag to match the alleged European connection.

South Africans to cough up more for cigarettes, alcohol, fuel
[Proffesor Ndawonde] South Africans will be coughing up more this year on sin and fuel taxes - the taxes on alcohol and tobacco products have gone up as well as on fuel.

Not all bad news for 2009 and beyond - economist
Overall, although globally the picture is gloomy, it's not all bad news for South Africa. This is the viewpoint of economist Dr Azar Jammine, who recently presented his take on South Africa's economic and marketing outlook for 2009, along with Noel Coburn, co-founder of Caxton, at breakfast presentations hosted in Johannesburg, Cape Town and Durban by Caxton CTP and the Newspaper Advertising Bureau (NAB).

Dior slips as luxury fashion feels cold wind
PARIS: The Christian Dior luxury holding giant revealed a sharp slide in performance on Monday with a drop in fashion clothing profits after its main unit LVMH reported strains from the financial crisis.

Women are recession proof - The Women's Show
[David Wolstenholme] 2009 will make 2008 look like a boom year, having just returned from a five-week trip to the United States where the mood is grim. From Washington DC to Boulder, Colorado, the shops were empty and the restaurants half full and all we can remember was a sombreness - and this over Christmas and New Year, traditionally their busiest time of the year.

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Banking & Finance
2009 budget receives varied reactions
[Bathandwa Mbola] Economists and business have welcomed Finance Minister Trevor Manuel 2009 Budget, saying he was able to balance the needs of the poor with some relief for taxpayers.

Manuel highlights gloomy outlook for global economy
[Michael Appel] Drawing a rather gloomy picture of what the world's economies can look forward to, Finance Minister Trevor Manuel on Wednesday said recession on Anglo-Saxon markets has truly taken grip.

SA awaits for Manuel's Budget Speech
With the world economy in trouble and the Rand suffering some of its biggest losses in recent years, South Africans are waiting anxiously to see what the 2009 Budget Speech holds.


Brand news
Microsoft embarks on retail adventure
[Jeff Meisner] USA: Just a month after saying it had no intention of opening a chain of retail stores, Microsoft has announced plans to do just that.

Vicent Maphai rejoins SAB
The South African Breweries (SAB) Ltd has announced that, as of 1 March 2009, Dr Vincent Maphai, former chairman of BHPBilliton Southern Africa, will be joining the brewer as Executive Director of Corporate Affairs and Transformation.


Pioneer to cut 10,000, abandon troubled TV biz
[Shino Yuasa] Japanese electronics company Pioneer will cut 10,000 jobs globally to cope with sinking sales of car audio equipment and flat-screen TVs. It will also withdraw from its money-losing plasma display business.

Nokia lays off 320 researchers, dials back production
[Matti Huuhtanen] Nokia said Wednesday it will close a research center in Finland and axe up to 320 jobs in a move to save costs as the global economic downturn hit the mobile phone industry. It also announced temporary layoffs.

LG intends to keep South Korean workforce intact
[Kelly Olsen] The CEO of South Korea-based LG Electronics said Monday that his company needs to trim fat amid the global downturn, but big job cuts like those being made in neighboring Japan are not in the cards.

Stimorol centre-filled gum hits the spot - Cadbury South Africa
Stimorol, South Africa's favourite chewing gum brand is delighted with the Product of the Year Award 2009 for its innovative chewing gum brand.


Nederburg on the move

click to enlarge
The fast-growing Nederburg brand has taken top billing at the international arrival and departure terminals of Johannesburg's OR Tambo Airport, featuring prominently on billboards displayed in high-traffic areas. "Nederburg is not only a leading South African wine brand but is increasingly sold abroad," says global brand manager, Rudolph du Toit. "Our new advertising campaign sends a prominent signal. To international visitors departing, it says: 'You'll find us in major international cities across the world. To locals going on holiday, it says: 'You can be assured of a taste of home, even far away'. And for those arriving in Johannesburg, gateway to South Africa and the African continent, it raises immediate awareness of our brand and its ability to offer an exciting and an authentic taste of place across the range." Du Toit says Nederburg continues to show good sound growth worldwide, despite the global credit crunch and reduced consumer spending. "Northern Europe, the UK, Northern Ireland, Canada, Asia Pacific and Africa are showing very encouraging increases. Year-on-year, we are also up in the domestic market, garnering new customers amongst trendy young sophisticates."


Launching limited edition Viognier

click to enlarge
Fleur du Cap, one of South Africa's finest producers of Viognier, having scooped the International Viognier Trophy for its 2006 vintage at London's International Wine Challenge, has released another rich, full-bodied frontrunner. The Limited Release 2007 Fleur du Cap Unfiltered Viognier is a generous wine with an excellent balance between abundant fruit and wood flavours. Made with minimal intervention in the cellar of grapes from a single vineyard in the Stellenbosch area by estate winemaker Pieter Badenhorst, this wine owes its vanilla puffs and balanced wood integration to the nine months spent in third-fill French oak barrels. It retails at around R100 at leading wine shops.


A new flavour for a new season
Activia is launching a new pear flavour, which is the latest extension to its range of probiotic yoghurt. According to Kim Snyman, marketing manager, Danone Clover South Africa: “You can significantly promote your digestive health by adding proven probiotics to your diet, in combination with a healthy balanced diet and active lifestyle. Probiotics are live microorganisms which, when eaten live and in sufficient quantities, have a positive impact on digestive health beyond basic nutrition.” Activia Pear will be available on shelves, countrywide in April 2009.


Corporate Social Investment
Educo Africa CEO goes out on a ledge for charity
Today, 16 February, sees CEO of Educo Africa, Trevor Johnston, abseil to a portaledge hanging from the roof of the SABC building in Cape Town and be suspended there for seven days with only the bare essentials. In partnership with Good Hope FM, the On the Edge campaign aims to raise awareness and funds for the organisation and highlights the many individuals living on the edge in the South Africa.



e-Commerce
Online retail spending falls
WASHINGTON: Online retail spending fell 3% in the fourth quarter of 2008 compared with a year ago, the first quarter of negative growth since 2001, digital research firm comScore reported Thursday.

Nokia to open music store in SA
Nokia is launching its music store in South Africa, and aims to open its virtual doors on 24 April 2009, with the promise to deliver millions of digital tracks from global hits to local artists including the Parletones, Goldfish and Arno Carstens.



Franchising
Convenience stores get a fresh start
Four selected Caltex service stations in the Western Cape are converting their existing StarMart convenience stores into FreshStops, bringing to fruition one of South Africa's latest retail partnerships.



Hospitality
Global hotel operators target SA
While the global economic slowdown continues, South Africa's hospitality industry remains upbeat with ongoing positive growth reflected in the hotel market, and with major global operators clamouring to gain a presence, says Joop Demes, CEO of Pam Golding Hospitality.


Calling all pizza makers: Fire up with the Global Pizza Challenge
Hot out of an Australia pizza oven with a well-established history of some 10 years, comes The Global Pizza Challenge (GPC). After nearly two years of negotiation, the Rice Paper Group has secured the licence to bring the internationally celebrated gourmet competition to SA shores.


Health food chain scores Super 14 sponsorship deal
Kauai has signed individual product sponsorship deals with 25 professional South African rugby players for the duration of the Super 14 tournament that kicks off on the 13 February 2009.



Import/Export
Zim sanctions discussed at SA, Bulgaria meeting
[Bathandwa Mbola] PRETORIA: The issue of Zimbabwe, in particular the lifting of sanctions imposed by the European Union on that country, emerged in discussions between South African Foreign Affairs Minister, Dr Nkosazana Dlamini Zuma and the Bulgarian Deputy Prime Minister and Foreign Minister Ivaylo Kalfin late last week.


Manufacturing
Manufacturing output slides heavily
[Cees Bruggemans] Manufacturing output declined by a revised -6.4% year-on-year in November 2008 (previously -4.4%) and by an even steeper -7% in December 2008.


Packaging
How to add an on-pack coupon to boost product sales
Instant-redemption coupon label creates opportunities on slim blister-packs for AquaFresh toothbrushes.



Promotions
Hansa unveils SA's newest millionaire
Jubilation and tears flowed as South Africa's newest millionaire was unveiled on Friday when Colin Smith from Kimberley won the Hansa Marzen Gold '1 Marzen 1 Million Competition' held at the Gold Reef Casino.


Renewable hero gets his name
After launching a national campaign last year, The Glass Recycling Company's intrepid new hero has finally been christened. Translated, the Zulu word Vusa means to renew - an appropriate choice considering that glass is 100% recyclable and thus renewable.


Second Idea Bounty winner announced
Chantelle Schmidlin, a content developer at Achievement Awards Group, is the winner of the US$3000 Levi's Idea Bounty brief, Quirk eMarketing announced Tuesday, 10 February 2009. The Levi's brief, the second put out by creative idea crowdsourcing initiative Idea Bounty, received almost 250 responses. The new brief, announced Monday for BMW, also has a bounty of US$3000.

Art Vespa 2009 winners to be unveiled at Design Indaba
The judges from Piaggio in Italy were impressed with the quality of design submissions for the annual 2009 Art Vespa competition - and so will you be when you see the winners unveiled at the Design Indaba at the Cape Town Convention Centre on 27 February 2009 at 2pm. The brief called for simple, clever and bold ideas that complimented the iconic scooter's shape, and the winner will receive an ultra-stylish Vespa LX150 wrapped in the winner's original design.


Regulatory
ASA cans Mister Bean's packaging
The Advertising Standards Authority (ASA) of South Africa has ordered Emirates Industries to withdraw the packaging of its Mister Bean Baked Beans product. This follows its finding that the packaging contravened two ASA Code clauses - it exploited the advertising goodwill of Tiger Brands' Koo Baked Beans and imitated the product's packaging.


Govt to educate public about Consumer Bill
The Department of Trade and Industry is to embark on a consumer protection awareness campaign countrywide, next week.


Research
Watch your flirtatious customers in a ‘recession'
The obvious highlight from decades of buyer behaviour data is just how habitual buyers are and that it's the non-regular behaviour in these times that changes. This is according to Noel Coburn, co-founder of the Caxton/CTP group, speaking at the recent countrywide breakfast road shows hosted in Johannesburg, Cape Town and Durban by Caxton CTP and the Newspaper Advertising Bureau (NAB).

US consumers still buying green despite economic downturn, says study
Research shows that 82% of shoppers in the United States continue to seek eco-friendly products.


Retail services
Shoppers look for ‘rewards'
An increasing number of cash-strapped consumers is seeing value in making use of loyalty reward programmes offered by retailers.

Web 2.0 stars are aligning: Q&A with Genesys CEO Paul Segre
[Erika Morphy] What do contact centres, SaaS, customer service, Web 2.0, and BPM have in common? Those - and other components - are part of Genesys' newly defined mission through its applications software initiative. Genesys CEO Paul Segre says conditions are ripe for enterprises to take advantage of this new way of acquiring the functionality they need to succeed.


Retailers
Doubt over Woolies pharmacy roll-out
[Nicola Mawson] Food and clothing retailer Woolworths' pharmacy roll-out seems to have been dissolved before getting off the ground completely.

Questions in the air
[Rob Rose] The depression that hit JD Group's share price (down 60% in two years) reflects “scepticism that our strategy of splitting financial services from retail will work,” says chairman David Sussman.

No udder way to get your retail fix
[Keitumetse Segoai] At the Irene Village Mall, you get to explore the “Udder Side of Life”.

Shoprite's move into Africa pays dividends
The expansion of Africa's largest retailer, Shoprite, into the continent is paying off as it said yesterday it expected earnings to improve at least 35% in the six months to December.

Sales down as tight trading hurts Italtile
[Nicola Mawson] Ceramic tile retailer Italtile said yesterday it would not be able to keep earnings growth at last year's levels after sales dropped in the first half of the year.

Shoprite expects higher earnings
South African retailer Shoprite Holdings said on Tuesday that it expects both earnings per share and headline earnings per share for the six months ended December 2008 to be between 35% to 45% higher than those of the prior comparative period. It said the current state of the economy should be considered when projecting the results of the group for the full year. Its results are expected to be released on or about 18 February. - I-Net Bridge


Security
Recalling Big T Burger products
General Mills South Africa is voluntarily recalling six Big T Burger products that contain egg, an allergen that is not listed on the ingredient label. This is a Class 1 recall and will commence with immediate effect.

SARS issues warning over scam e-mail
The South African Revenue Service (SARS) has cautioned taxpayers against a number of scams which have been circulating in recent days which seek to obtain people's bank and other personal details.


Supply chain
Nokia launches service for Kenyan farmers
Nokia is launching a new service to offer prompt weather and agriculture-related information to farmers to enhance their preparedness in ensuring optimal food production.

R1.8bil boost for rural development
[Nthambeleni Gabara] South Africans living in rural areas especially female farmers are set to benefit from government's R1.8 billion boost to rural development and smaller farmer support.


Technology
Get in touch
Samsung has announced the launch of the elegant S8300 UltraTouch, its latest fully equipped touch slider phone.


The laptop buyer's burden: HDD or SSD?
Buyers of both high-end laptops and low-priced netbooks have a lot of choices to make about what features and options they want their new computers loaded with. One relatively new option is the choice to go SSD instead of HDD. Solid-state drives can be speedier and more durable under certain circumstances, but they can have a big impact on the system's overall price.

Standing out in the App store crowd
[Jim Offner] There are rumours that Apple might be planning to beef up its iPhone/iPod touch App Store with a premium games section, and that might deepen the quandary mobile software developers already find themselves in.

Amazon fires up Kindle sequel
[Renay San Miguel] You know Amazon's Kindle has arrived as a consumer electronics product - and pop culture talking-point - when Stephen King makes the electronic book reader a major character in one of his forthcoming works.



Events to diarise
Everything starts with the customer course Front Foot Strategic Consulting - Johannesburg, 16 February
Learn to handle difficult customers with ease
 
KWV Challenges in the Wine & Spirits Industry 2009 UCT Graduate School of Business - V & A Waterfront, Cape Town, 18 February
The UCT Graduate School of Business and our partner, Deloitte, invite you to attend the first event in our Distinguished Speakers Programme for 2009 on Wednesday, 18 February
 
The Women's Show 2009 SE Shows & Events - Cape Town, 20 February
As a celebration of women, the cornerstones of our society, families and businesses, the Women's Show is a tribute to South Africa's everyday working women!
 
The Trade Intelligence Breakfast IIR - Rosebank, 24 February
Don't miss this unique opportunity to network with industry leaders while gaining insight into South Africa's unique challenges.
 
HOSTECH 2009 Exhibition and Conference Trade Conferences International - Johannesburg, 25 February
The influence of technology on the future of the hospitality industry in South Africa, is the main focus of the HOSTECH Exhibition and Conference to be held from 25 - 26 February 2009 in Johannesburg.
 
Boosting business with Africa Upbeat Marketing - Johannesburg, 26 February
The DTI and Department of Foreign Affairs are boosting intra-Africa business.
 
The Home Improvers Show Affinity Strategic Communication - Cape Town, 26 March
26th March 2009 sees the opening of the first annual Home Improver's Show.
 

Upcoming events
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    Quotes
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