13 Jul 2009

 

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Greed is the problem

"People are the problem," we were told at the Retail Risk conference some months ago as we covered credit scams, syndicates, and retail shrinkage. But I think BizCommunity contributor Nikolaus Eberl was closer to the mark when he asked whether hotel greed will kill SA's tourism brand beyond 2010. Because, on a broader basis, it's not so much 'people' as their greed that will be the downfall of any business in the end. Take a look at the construction strike currently underway. These workers are essentially hijacking what is to be SA's biggest international event ever. They know that these stadiums have to be built, otherwise there will be no 2010 FIFA World Cup. Not in South Africa anyway. And they're exploiting this to get what they want. But, on the other hand, these workers feel that they are being exploited and aren't being paid what they're worth for essentially making the event possible. So who's right? Who's wrong? Meanwhile, back at the store, Massmart employees are also threatening to strike over a wage dispute. They want an extra R460 or 8.5% (whichever is more) per employee, who are currently earning an average of between R4169 and R4797, depending on which of the retailer's divisions you're looking at. Doesn't sound like much to ask, does it? Now there's some 28000 people working for Massmart's various stores. A standard R460 raise for all these employees totals over R12.8 million extra per month. No wonder HQ is getting sticky. That's a monster chunk out of the bottom line. But on top of that, there are extra requests such as provision of transport, childcare and non-discriminatory medical aid contributions. Now, I can sympathise with low wage earners - most of us have been there at some point - but (and correct me if I'm wrong), I thought a standard requirement for employment is presence. You have to be there in order to work, so you can get paid. Surely this one basic requirement is not too much to ask? I've come across enough "own transport required" job ads to assume it's not... And it's not like it's necessary for employees to have their own cars... albeit our public transport system still leaves much to be desired. But we haven't even broached the subject of the alleged retailer price-fixing scam while masses sink nearer to starvation than ever before. There's a constant push-pull of finger-pointing and exploitation, and it all whittles down to greed. Everyone wants their share of the pie... but just how big is the pie and just how much of it are you entitled to? Either way, karma seems to be biting at both ends of the string... and in the end, everyone will get what they deserve...


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

Top stories



Editorial news

Retail


The great food price rip-off
[Rowan Philp and Karen Van Rooyen] South Africans are paying up to 30% too much for some essential foods - because of greed, dominance and waste at major companies. Read more >>

Motorists can pay for fuel by credit card
Motorists will from Friday onwards conveniently be able to pay for petrol after filling up with their credit cards. Read more >>

Milkworx to acquire Ububele in share deal
[Kgomotso Mathe] Ice-cream producer Milkworx on Tuesday, 7 July 2009, announced that it had signed an offer to acquire agricultural and food processing company Ububele through a share swap. Read more >>

Commercial property hit by slump
[Thabang Mokopanele] The CEO of JSE-listed Growthpoint Properties, the largest listed property company, yesterday said SA was unlikely to see any “meaningful” commercial development in the next 12-18 months due to the economic slump. Read more >>

Wine academy MD finalist for BWASA awards
The Cape Wine Academy's MD and wine master, Marilyn Cooper, has been named one of the three finalists in the CEO Magazine's ‘Most Influential Women in Business & Government Awards' in the Arts and Culture Sector. Read more >>

Cowey Centre set for R12m upgrade
Cowey Centre and its commercial office building in Durban's Morningside area is set for a R12m makeover. Growthpoint Properties, which owns the building, says the refurbishment is scheduled to start this month and will be undertaken amid trading, with measures in place to ensure minimal disruption for shoppers. Read more >>

Christian Lacroix: hanging on by a thread
PARIS: Designer Christian Lacroix has had his back against the wall since the fashion house which bears his name went into administration early last month. Read more >>

Associations


Two pending strikes against Massmart group
The South African Commercial, Catering and Allied Workers' Union (Saccawu) on Monday, 6 July 2009, said that after negotiations with the management of Makro deadlocked, it was preparing for industrial action. Read more >>

Banking & Finance


Bad debt hounds consumers
The number of consumers with bad debts has increased, the National Credit Regulator (NCR) said on Sunday, 12 July 2009. Read more >>

Standard Bank wins at 2009 Euromoney Awards
LONDON: Standard Bank has won three awards at the Euromoney Awards for Excellence ceremony held in London on Wednesday, 8 July 2009. The company won Best Investment Bank in Africa, Best Investment Bank in Nigeria and Best Equity House in Africa. Read more >>

Mozambique: Socremo launches new product
[Arao Valoi] MAPUTO: Mozambican bank, Socremo, announced on 2 July 2009, the launch of a new product called 'Account Vitamin'. Read more >>

FNB Botswana appoints new CEO
Lorato Edith Boakgomo-Ntakhwana has been appointed as chief executive officer of First National Bank of Botswana (FNBB). Boakgomo-Ntakhwana is the first black female to be appointed to this position. Read more >>

New state body to bankroll inspired ideas
[Lesley Stones] A new government agency has been created to help turn smart but cash strapped ideas into commercial products that will boost SA's economy and create jobs. Read more >>

Brand news


Swatch expects sales to improve in second half
ZURICH: The world's biggest watchmaker Swatch Group is expecting sales to improve in the second half of this year after a difficult start to the year, group's CEO Nick Hayek said in remarks published on Sunday, 12 July 2009. Read more >>

Distell buys chateau in Cognac
South African group Distell, the world's fourth largest producer of brandies, has bought a 19th-century chateau in the heart of Cognac which is to become the home for its recently acquired cognac brand, Bisquit. Read more >>

PepsiCo announces US$1bn investment in Russia
MOSCOW: US soft drink giant PepsiCo said on Monday, 6 July 2009, it would boost investment in Russia by one billion dollars, topping the list of US trade deals expected during President Barack Obama's visit to Moscow this week. Read more >>

SABMiller ‘looking hard' at costs
Global brewer SABMiller yesterday, 6 July 2009, said it was responding to the downturn and competition with an aggressive group-wide cost-cutting programme, reviewing capital expenditure while intensifying marketing efforts to grow volumes in its geographical footprint stretching across 75 countries in six continents. Read more >>

Corporate Social Investment


Collect-a-Can helps empower KZN poor
The Siyazenzela Waste Management Project, Collect-a-Can, the Department of Transport and Msunduzi Municipality are striving to decrease poverty and unemployment in KwaZulu-Natal through an environmentally conscious and self-sustaining infrastructure of waste management, it was announced Tuesday, 7 July 2009. Read more >>

Limited edition Mandela Bangle on sale
Four hundred special edition Mandela Day bangles will go on sale next week to celebrate Nelson Mandela's 91st birthday. Read more >>

Stellies Wine Fest gives back to charity
The Stellenbosch Wine Festival, which takes place from 30 July - 2 August 2009 at the Paul Roos Centre, is eager to give something back to the community by aiding welfare organisations in the area. Stellenbosch Child Welfare, Stellenbosch Animal Welfare and the Clover Mama Afrika project will each receive funds raised at the festival from concerts and demonstrations. Read more >>

Distribution


Baxters soup hits SA shelves

click to enlarge
Stafford Bros & Draeger has been appointed the exclusive distributors of the Baxters soup range. Baxters have been making soup since 1929, and today are considered one of the most popular premium canned soup brands in the United Kingdom. Stafford Bros & Draeger are importing ten varieties from the Baxters soup range - two luxury, six favourites, and two vegetarian. The luxury soups are the lobster bisque and beef consommé. The favourites are cream of tomato soup, potato & leek, minestrone, pea & ham, French onion, and chicken & vegetable soup. The vegetarian choices are butternut squash & red pepper soup and country garden soup.

New SA custodian for Kodak
Eastman Kodak has appointed Optus Brands, a subsidiary of the Fore Good Group, as the national distributor and brand custodian for Kodak in South Africa. Read more >>

e-Commerce


Amazon doubles up on cellphone stores
[Richard Adhikari] USA: Although it already has a store for selling cellphones and other wireless communications products, Amazon.com has launched a new site targeting the same market. Read more >>

Don't give your customers a reason to park their carts
[Bala Janakiraman] Shopping cart abandonment is an e-commerce evil, but it's not a necessary one. Researchers have uncovered some of the top reasons customers walk away, and e-tailers that choose to ignore them do so at their peril. Taking a holistic approach to protecting shopping carts can go a long way toward protecting, perhaps growing, revenue. Read more >>

Vitality Mall puts Tempur online
A good night's rest is close at hand for Discovery Vitality members following a partnership agreement with Tempur that will see the premium mattresses and pillows company availing its products on the Vitality Mall website. Read more >>

Exhibitions


Trading around the world at Saitex
The Southern African International Trade Exhibition (Saitex), one of the largest multi-sectoral trade event of its kind on the African continent, will run alongside the annual food industry event Africa's Big Seven at Gallagher Convention Centre from 19 - 21 July 2009. A free business matchmaking programme will be on offer, providing ample opportunity to cement trade relations. Read more >>

Africa's Big Seven exhibition draws closer
Africa's Big Seven (AB7) exhibition, showcasing the food and beverage industry, will take place from 19 - 21 July 2009 at the Gallagher Convention Centre, Midrand, Gauteng, South Africa. The event plans to host over 300 exhibitors from 35 countries offering trade opportunities to attendees. Read more >>

Health & Safety


Malaysian authorities seize 'Viagra coffee'
KUALA LUMPUR: Malaysia's health authorities have seized over US$20,000 worth of coffee mixed with sildenafil, the main ingredient in erectile dysfunction drug Viagra, a report said Sunday, 5 July 2009. Read more >>

Hospitality


Downturn takes bite out of eating out
[Kgomotso Mathe] Despite expectations that the economy will recover from the global financial crisis, consumers are still keeping their wallets closed. To keep a restaurant business going is even harder now. Read more >>

Nominations open for HICA Awards
The third annual Hospitality Investment Conference Africa (HICA), will be held at the Sandton Sun Hotel, Johannesburg on 4 to 6 November, 2009 and this year there will be two additional categories, for the Upcoming Industry Mover and Shaker, and for Excellence in Travel and Tourism Reporting, the organisers announced on Tuesday, 7 July 2009. Read more >>

Import/Export


Recession knocks air cargo sector
[J. Krishna Kumar] Gloomy announcements in transport and energy industries raise questions over supposed 'green shoots' of recovery. Read more >>

Informal retailing


Helpers without permits barred from city market
[Mhlaba Memela] Heavily armed Metro Police drove away hundreds of traders and workers without permits who arrived for work as usual on Thursday, 9 July 2009, at the Early Morning Market in Durban. Read more >>

Taxi plan puts traders' income at risk
[Margie Inggs] The livelihood of about 6000 informal traders at Warwick Junction, Durban's primary transport hub, are being threatened by the eThekwini municipality's plan to demolish the historic Early Morning Market to make way for a reconfigured taxi rank and R400m mall, Caroline Skinner, a researcher from the School of Developmental Studies at the University of KwaZulu-Natal, said Tuesday. Read more >>

Logistics


Transnet faces huge claims
[Buddy Naidu] Transnet is facing a legal challenge to projects totalling R4-billion that form part of its R80-billion capital expenditure programme. Read more >>

Transnet wage bill rises
[Artwell Dlamini] Transport parastatal Transnet has been left saddled with a additional wage bill amounting to more than R700m following a salary settlement with unions. Read more >>

Crossroads Distribution seeks acquisitions
[Artwell Dlamini] Crossroads Distribution, an unlisted black-owned and diversified logistics company, says it is on the lookout for acquisition opportunities, but it is not prepared to list even though its revenue is now in excess of R1,4bn. Read more >>

Manufacturing


Task team looking to Asians to ‘bail' out textile giant
A task team appointed to help save Seardel's textile division, the Frame Group, is negotiating with an Asian foreign investor to buy some or all of the assets earmarked for closure in order to keep them operational in SA. Read more >>

Costs under pressure
[Matthew Hill] Aluminium may be the most abundant metal on the planet, but Pietermaritzburg-based manufacturer Hulamin will soon find it more difficult to get its hands on the material. Other local value adding producers will be affected, too. Read more >>

Manufacturing falls 17.1%
The estimated manufacturing production for May fell by 17.1% after dropping a revised 21.8% in April, Statistics South Africa (Stats SA) announced on Thursday, 9 July 2009. Read more >>

Packaging


When it comes to packaging, less is more
[Ted Mininni] Consumer product companies have been cutting down on extraneous packaging for good reasons. The rise in raw material, energy, manufacturing and transportation costs, coupled with the rise in consumers' environmental consciousness all play a part in reducing packaging. Read more >>

Regulatory


France begins burka hearings
PARIS: French lawmakers opened hearings on Wednesday, 8 July 2009, on whether to ban the burka, calling in experts who said France should act to discourage Muslim women from wearing the head-to-toe veil. Read more >>

Research


UK consumers shop for value, quality
Most UK consumers are well aware of the economic downturn and are feeling the impact on their daily lives, but are not making wholesale changes to their consumption patterns in the grocery arena. UK shoppers are not abandoning consumerist lifestyles and retail sales in the UK continue to show a slight increase. Nevertheless, there are a number of downturn-induced attitudinal and behavioural adjustments that need to be acknowledged and acted upon. Read more >>

SA consumers cut discretionary spending
The challenging economic times are taking their toll, with the result that 43% of South African consumers are looking to apply the brakes on their discretionary spending over the next six months. This is according to findings of the latest MasterCard Worldwide Survey on Consumer Purchasing Priorities, released today, 9 July 2009. Instead of spending on discretionary purchases, the survey finds that consumers are paying more attention to long-term assets such as retirement savings, investments and renovations. Read more >>

South Africa's mobile advertising revenue surges in 2009
According to global mobile advertising network mKhoj in a report issued today, 8 July 2009, South Africa's mobile advertising market is in good shape, but the company also says Nokia is losing share and the iPhone provides only a small proportion of total network traffic, though it's growing. Read more >>

Business confidence increases for June
The Business Confidence Index (BCI) for June increased by 1.3% to 83.1%, the South African Chamber of Commerce and Industry (SACCI) announced on Monday, 6 July 2009. Read more >>

Retail marketing


Sporty lift campaign for SA malls
Digital touch screens and mall advertising platforms will be the mediums used in 14 malls nationally for the sports brand Puma. Primall Media was recently commissioned to launch the lightweight footwear for a six-week burst. Read more >>

Retailers


Credit cards welcome
Motorists can now pay by credit card for their fuel at 600 Engen 1-Stop and Quickshop service stations across the country, the South African petrol and diesel retailer announced. This follows a law amendment that allows dealers to accept credit cards, partly to accommodate the massive influx of international visitors expected in 2010. Read more >>

Shoprite 'probably beating' rivals
[Kgomotso Mathe] In the middle of a deep recession, Shoprite was still able to perform better that most of its competitors, an analyst said Thursday, 9 July 2009. Read more >>

Massmart 52-week sales up
Massmart Holdings reported on Wednesday, 8 July 2009, that total sales for the 52-week period to June 28 2009 increased to R43.1 billion, a growth of 10.4% over the prior year's 52-week period, with inflation estimated at 11.4%. Read more >>

Clothes designer to expand in SA
[Adele Shevel] British luxury clothing company Hackett is looking to expand in South Africa despite a downturn in the retail sector. Read more >>

Supply chain


Midi tea gets its break
[Shannon Sherry] The world price of black tea recently rose above US3/kg - almost double that of just two years ago - because of crop failures and shortfalls. Read more >>

Gales strike tomato growers
[Andrew Stone] Eastern Cape tomato farmers have suffered extensive crop and infrastructure damage, which could run into millions of rands, following the recent heavy winds. Read more >>

Technology


Understanding kids in the digital age
Most parents feel that their children know more about technology than they do, and as this “N Generation” gap widens, the growing disconnect can create problems for any family. Trend analysis company, Flux Trends, and digital education specialists, Learnthings, have combined their skills and knowledge to create a half-day workshop that explores the complicated dynamics between parents, their children and the technologies the N-Generation find indispensable. Read more >>

Amazon cuts Kindle price to $299
WASHINGTON: Amazon has cut the price of its electronic book reader, the Kindle, from US$359 to $299. Read more >>

Green mobility with new Naite
Sony Ericsson has launched its latest in eco-friendly mobile phones, offering users a greener choice without having to compromise on style or design. Read more >>


Company news

Brand news


Spekko Rice serves up a winning recipe at the Cape Town Good Food and Wine Show! - Spekko Rice
The Winter Good Food and Wine Show took place in Cape Town at the end of May and Spekko Rice teamed up with the SABC 2 show Eastern Mosaic to deliver one of the most popular and interactive stands at the show. Read more >>

Corporate Social Investment


Regional Poverty Indaba - Eden District Municipality - Just Mesh
The Department of Social Development as the lead Department in poverty reduction was tasked in 2004 with hosting of the first Poverty Indaba as well as with the tabling of the Integrated Poverty Reduction Strategy. Subsequent indabas and other summits related to poverty issues have also been successfully implemented. Read more >>

Retail services


Hertz new appointments - Hertz Rent a Car
Hertz Rent a Car has announced several new appointments at its Gauteng branches. Read more >>


New accounts
  • The Company of Wine People appoints Tin Can Cape Town - more info

    Jobs offered
  • Assistant Commercial Manager - Morningside, Durban
  • FMCG Sales Consultant - Cape Town
  • Assistant to Fashion Accessories Buyers - Montague Gardens
  • Senior Credit Risk Analyst - Cape Town
  • HR Facilitator - Cape Town
  • Sales Manager - Johannesburg North
  • Secretarial/Admin - Chelsea/Wynberg

  •   OPEN DOOR Recruitment:
    Specialising in
    Media Sales,
    Advertising and
    Marketing placements
    www.opendoor.co.za

    Events to diarise
  • Plast Pack Africa - Durban, 16 July
  • Retail Solutions Africa - Midrand, 19 July
  • Pan Africa Retail Trade Exhibition - Johannesburg, 19 July
  • Foodbiz Africa - Midrand, 19 July
  • Africa's Big Seven 2009 Exhibition Management Services - Midrand, 19 July
  • SA Wine Tourism Conference 2009 Imfunzelelo - Cape Town, 21 July
  • The National Credit Act workshop CBM Training - Cape Town, 22 July
  • SAACI Annual Conference and AGM 2009 Saaci - Pretoria, 26 July
  • 2nd Annual Web Optimisation, Marketing & Branding Syncom Business Intelligence & Conferences - Johannesburg, 5 August

  • Upcoming events
  • Plast Pack Africa - Durban, 16 July
  • Africa's Big Seven 2009 Exhibition Management Services - Midrand, 19 July
  • Pan Africa Retail Trade Exhibition - Johannesburg, 19 July
  • Foodbiz Africa - Midrand, 19 July

  • Quotes
    "Do not put your faith in what statistics say until you have carefully considered what they do not say." - William W. Watt"Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe." - Peter Drucker"The most important word in the vocabulary of advertising is TEST. If you pretest your product with consumers, and pretest your advertising, you will do well in the marketplace." - David Ogilvy"Your most effective marketing tool may be your own customer list, but you'd better make sure you have one. A lot of people think they can just use the list of companies they send bills to. Wrong. That's a billing list. If you want a marketing list, you have to generate one, and that means including the information a marketer needs, which is a lot different from the information a credit manager needs." - Ernan Roman"Don't aim for success if you want it; just do what you love and believe in, and it will come naturally." - David Frost

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