13 Jun 2011

Retail | South Africa

 

Be the competition

Few things are sweeter to the ears of a shopping centre developer than "More retailers want in - make it bigger." This is what has happened to Middleburg Mall, which is going to be 7000sqm larger than originally planned, thanks to confirmation that Edcon will open four stores in the centre under its various divisions. Scheduled to open in April next year, the mall will also include a Game store. But don't expect Game to suddenly be flying under Wal-Mart colours - that's just not the way the US superstore does things. So with Edcon raising the alarm about the competition Wal-Mart brings to the local clothing market, The ReDress Consultancy took a survey of the industry insiders to find out what they really thought about the retail giant's entry into the fray. And while unions and retailers in general grumble about the new player, Dave Nemeth offers some advice about how to stay in the competition.


Shan Radcliffe, Retail editor
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Responses to this column welcomed in our new online editor's column archive.
Image: renjith krishnan / FreeDigitalPhotos.net

Top stories


Editorial news

Retail


Retail needs youth, design input
[Dave Nemeth] Though there seems to be an optimism amongst local consumers, retailers in general seem to be in a state of panic and confusion, with many having put holds on marketing budgets due to conventional methods simply not giving the returns they used to. Some have half heartedly tried to embrace social media but simply seem to be out their depth in this area, or using a company that doesn't fully understand their customers. Read more >>


Advertisement:


Finalists for Pravda Vodka Jewellery Design Competition
The Pravda Vodka Jewellery competition in association with the Jewellery Council of South Africa (JCSA) has announced the 10 finalists chosen from over 300 hundred entries received. Last year, the competition called on ambitious and creative South African jewellery designers to enter bold and flamboyant jewellery designs in line with the brand theme - The Pravda Royal Collection. Read more >>


Edcon raises competition alarm on Wal-Mart
[Zeenat Moorad] Clothing, footwear and textiles retailer Edcon, the owner of Edgars and Jet, has warned that the arrival of international players such as Wal-Mart and Zara could increase competition in the retail market. Read more >>


Associations


Banking & Finance


Cash withdrawals drop in value
The Spark Cash Index, utilising its ATM Systems' network of over 1200 ATM points countrywide, has shown an expected sharp drop from April to May this year in cash withdrawal values across South Africa. They were however marginally up on February and March's values. Read more >>


Brand news


From banking to brandy - Modise joins KWV
KWV has announced the appointment of Max Modise as its new brand director for spirits. In his new role, he will be responsible for the full spirits portfolio, dominated by KWV's 3, 5, 10 and 20 year-old brandies, which continue to gain market share in a declining category within the South African market. Read more >>


Unilever on road to 100% sustainable sourcing
Unilever, a founding member of the Round Table on Responsible Soy (RTRS), bought some of the first available certificates for sustainable soy earlier this week. This follows the recent introduction of the RTRS certification scheme and is a small but important step towards 100% sustainable sourcing of the company's agricultural raw materials by 2020. Read more >>


Clothing & Textiles


Fashion Week will show off craft producers
The Cape Town Fashion Council and the Cape Craft and Design Institute (CCDI) organised a matchmaking session on 2 June 2001 at the CCDI Training Unit in Cape Town, as part of the Foschini Fastrack Day. The resulting collaborations will be showcased on the catwalk on the first day of Cape Town Fashion Week on 13 July. Read more >>


Wal-Mart's possible impact on clothing sector
[Renato Palmi] The rigorous debates, arguments and public input about Wal-Mart's entry into South Africa are well documented. The ReDress Consultancy undertook a snap survey with owners of clothing companies and an industry body to find out if there were any commonalities in regard to the clothing industry's view on its entry into South Africa. Read more >>


Commercial property


Mpumalanga mall outgrows original plan
The larger development size of Middleburg Mall, substantially increased from the initially announced 34,000sqm to 41,000sqm, follows confirmation from Edcon that Edgars, Jet, Legit and CNA will be joining the tenant mix of some 90 retailers. It is scheduled for opening on 19 April 2012. Read more >>


V&A Waterfront sale complete
The sale of South Africa's landmark V&A Waterfront is now complete and all conditions have been fulfilled by the equal purchasers, the Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation (PIC) and Growthpoint Properties. Read more >>


Distribution


US wine critic finds Bordeaux prices hard to swallow
BORDEAUX, FRANCE: One of the world's most influential wine critics is alarmed by the high price of Bordeaux wine, saying the region risks hurting itself by focusing so much on the East Asian market. Read more >>


e-Commerce


Mobile shopping survey indicates growth potential
The recently undertaken kalahari.net Mobile Shopping Survey shows that 51% of connected South Africans access the mobile Internet every day, 26% have already made a purchase and a further 53% are considering it. The survey covered more than 6200 connected South Africans and shows the mobile web has entered the mainstream and South Africans are ready for mobile commerce. Read more >>


Exhibitions & Events


Dairy conference boosts local producers
Bertus de Jongh, CE of the Milk Producers Organisation, has described the seventh biannual South African Large Herds Conference as a catalyst that unites the struggling local dairy industry. Read more >>


FMCG


Franchising


Spur to acquire 60% stake in Cappuccino's
Franchise restaurant group Spur Corporation announced on Monday, 6 June 2011, that it would acquire a 60% stake in Cappuccino's, the cafe and pizzeria restaurant franchise, for about R25 million in cash. Read more >>


Green sustainability


Cleaning up the act
The new integrated waste management by-law, which has now come into play in the Cape Town Municipality, has placed the onus upon any organisation to provide an integrated waste management plan for approval by the City when they plan to undertake any project. This applies to building contractors, or any development at all where there might be waste accrued as a result of activities, such as a large sporting event. Read more >>


Health & Safety


Pfizer will stop selling poultry-pumping drug
WASHINGTON, USA: The pharmaceutical giant Pfizer will voluntarily suspend US sales of a poultry-pumping additive after studies showed it can leave traces of arsenic in chicken livers, the US government announced on Wednesday, 8 June 2011. Read more >>


Hospitality


Import/Export


Free trade area closer to fruition
JOHANNESBURG: After many years of planning and coordinating, African leaders have now moved a step closer to establishing the long-conceived goal of a united African economic community. Read more >>


Manufacturing


SA April manufacturing up 0.4% y/y
Manufacturing production in South Africa in April rose just 0.4% year on year (y/y) after a revised 4.9% growth (4.6%) in March, data released by stats SA on Thursday, 9 June 2011, showed. Read more >>


Packaging


Sustainable packaging masterclass at AB7
The 'Sustainable and Innovative Packaging Masterclass', which takes place at Africa's Big Seven (AB7) Food and Beverage trade expo on 18 and 19 July 2011 at Gallagher Convention Centre, will show delegates how sustainable materials and innovative packaging design can transform their product offerings into market leaders. Read more >>


Regulatory


Protection of Information Bill - too fast, too soon
[Gareth Ackerman] It is in business' interest to express itself very much more vociferously in opposition to the Protection of Information Bill, which is presently being pushed through parliament with a haste and zeal that suggest the government is determined to retreat into a self-protective environment of secrecy and concealment. This is terribly concerning and, given the wide range of concerns from a very broad range of South Africans, very difficult to understand. Read more >>


Research


Retail marketing


Footprint Marketing Awards now open
The Footprint Marketing Awards, which recognise exceptional shopping centre marketing, innovation and creative achievements, together with economic success, within the South African property industry on a regional level are open for this year's entries. The competition closes on Friday 17 June 2011. Read more >>


How to lose your customers in three easy steps
[Lindsay Grubb] It's much easier to lose a customer than it is to make them a loyal fan, so why are companies such as Shoe City shooting themselves in the proverbial foot? Here's how it - and You magazine - lost my business in three easy steps. [update: Shoe City apology] Read more >>


Retail services


Mobile life insurance up to half a million
According to Anton de Souza, CEO of 1Lifedirect, its latest first-to-market m-commerce offering allows South Africans to purchase, view and administer up to R500,000 fully underwritten life cover using their mobile phones, in less than 10 minutes. Read more >>


Retailers


Supply chain


Low milk producer prices worrying
The Milk Producers' Organisation (MPO) has expressed concern regarding producer prices for milk which have not yet increased this season. International producer prices increased significantly over the past three months and import parity is R4 and above for most products. Read more >>


Technology


Training



International news
Germany: €5329* average purchasing power for the retail sector
NUREMBERG, GERMANY: According to the latest survey by GfK GeoMarketing, there are significant regional differences in the retail purchasing power of Germans. The per capita amount available for retail spending ranges from just under €6900 in Hochtaunus district to around €4240 in the Uecker-Randow district. Read more >>


Two thirds of consumers fail to click with unengaged social media advertising
[Mintel Oxygen] While brands have followed swiftly to raise their profile with social media savvy consumers for e-commerce success, it appears that when it comes to advertising on social media, consumers may not be on the same page. Indeed, according to latest research from Mintel, over two thirds (66%) of social network users say they rarely pay attention to adverts on social networking sites, and over half (56%) say they don't like to buy products that they have seen advertised on social networking sites. Read more >>


May 2011 US search engine rankings
RESTON, US: comScore, Inc has released its monthly comScore qSearch analysis of the US search marketplace. Google Sites led the explicit core search market in May with 65.5% of search queries conducted. Read more >>


Osram sues Samsung, LG for alleged LED patent violations
FRANKFURT, GERMANY: German lighting company Osram, which is owned by industrial giant Siemens, said Monday that it had filed suit against Samsung and LG of Korea for patent violations. Read more >>


Sony polishes image with PlayStation Vita, 3D games
LOS ANGELES, USA: Sony introduced its new-generation "PlayStation Vita" gaming handset and blockbuster 3D console titles as it sought to shake off the stigma of cyber attacks on its system. Read more >>


More International news...


Company news

Retail


South Africans' sex secrets revealed - Women's Health
Ever flirted online? Cheated? Bought toys? Taken photos? Or wondered which city has the most sex? All the answers and more are revealed in the July issue of Men's Health and Women's Health. Read more >>


Retail services


Mi-Fone CEO to address leading execs at TMT Finance and Investment Africa Conference - Mi-Fone Marketing
Alpesh Patel, CEO of Mi-Fone, will be presenting at this year's TMT Finance and Investments Africa Conference on 17 June 2011 in London. Read more >>



Galleries
Ashtray Electric album launch

More


Motoring
Handsome, capable Freelander
[Henrie Geyser: motoring editor] Land Rovers are tough, go-anywhere chunks of metal and as long as you don't mind a hard, uncomfortable ride any one of the bar-room brawling Defender versions will take you where most other vehicles might stumble and stall. Read more >>


More Motoring news...


Travel
To the Manor born
[Brian Berkman] Marais Road, Sea Point has a special place in my heart as it was the location of my first home on my own. I lived in a tiny apartment, about the size of the desk that I'm writing on now, in a block called Wingate. Read more >>


More Travel news...


BizLounge
Power shift?
[Corné Krige] I had the honour of going to Newlands on Saturday to watch the Stormers take on their old foe the Bulls. I say it was an honour because to attend a match at a fully packed Newlands stadium really is something special. This weekend was no exception and it was great to see Newlands packed to the rafters. Read more >>


My experiences in fashion blogging
[Marianna Boguslavsky] My sister and I were by far the least fashionable sisters in school. I actually think my mother bought half of our clothing (ah, the horror). So some might think it was madness that we started writing our own fashion and shopping blog last year (we kind of did ourselves - my sister practically lives at Mr Price, not quite haute couture, is it?). Read more >>


You've seen the BIG 5, now see the BIG brass
[Terry Levin] Organising an event on a Monday is a bit of a double-edged sword; on the one hand it's not anyone's immediate choice for a big night out, on the other you are unlikely to have the excuse of much else to do. Read more >>


Somebody to Love
[Debbie Hathway] Mzansi Productions' director Dirk Badenhorst picked a tried-and-tested theme for his current production, Somebody to Love - a dance celebration to the music of Queen. Read more >>


The Standard Bank Joy of Jazz announces international line-up
Top international artists will join Wynton Marsalis at The Standard Bank Joy of Jazz festival, to be held between 25 and 27 August, 2011. Artists from America, Brazil, Croatia and Belgium will share the bill with those from South Africa and the African diaspora. Read more >>


Edges - a gamble you ought to take
[Jordan Scott] Once again back at the Kalk Bay Theatre and, as per usual, the intimacy and friendliness overwhelmed me. If you haven't been yet then you might not understand what I mean; however if you have been - well we're on the same page. Read more >>


The life of a Secret Asian Man - Mr Sakitumi
[Ruth Cooper] Mr Sakitumi has modestly been doing his talented multi-instrumentalist thing, writing, producing and performing, for some time now. He has been working somewhat behind the scenes and in the shadow of musicians such as Max Normal, Closet Snare, Lark, Krushed and Sorted and many more, so it really is about time that he stepped into the spotlight and released a solo album. "Secret Asian Man" is his debut album and is well worth the wait. It drops tomorrow, 8 June 2011. Read more >>


More BizLounge news...


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Quotes
"I do not read advertisements. I would spend all of my time wanting things. (via QuotationsBook)" - Archibishop of Canterbury
"Many ideas grow better when transplanted into another mind than in the one where they sprung up. (via Brainy Quote)" - Oliver Wendell Holmes
"When hospitality becomes an art, it loses its very soul. (via Dumb.com)" - Max Beerbohm
"I'm in the retail business, not the circus business. (via Success in Retail)" - Philip Green
"The headline is the most important element of an ad. It must offer a promise to the reader of a believable benefit. And it must be phrased in a way to make it memorable. (via Quoteland.com)" - Morris Hite


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