21 Jan 2013

Retail South Africa

 

Trade and trends

Image courtesy of kromkrathog / FreeDigitalPhotos.net.
Three weeks into January and the odd Valentine's Day gift, along with Easter eggs, adorn supermarket shelves. (More the latter than the former, mind you. Huh. I wasn't aware The Bunny was due before Cupid this year.) Ah, so it would seem it's business as usual.

November retail trade sales were released last week at a higher-than-expected 3.4%, pipping economists average forecast by 1.9%. Wholesale trade sales also showed growth in November.

Not all was well in the retail industry last week, though, as Shoprite lost almost 6% on its share price despite posting positive growth. Clearly not positive enough. Retail stocks remained under pressure and Mr Price felt the heat later in the week after reporting a 10% increase in sales. Truworths and Foschini managed to dodge this negative trend and posted higher share prices Friday after releasing their sales updates.

Speaking of trends, we're still in the midst on our 2013 predictions, so if you're still in the dark about what's hot, what's happening and what you should be doing this year, check out our trends here.

Have a fabulous week!


Shan Radcliffe, Group Head - Retail

PS. Responses to this column welcomed in our online ed's column archive. Send all your retail news to retailnews@bizcommunity.com, exclusive opinion pieces to contributors-retail@bizcommunity.com and international news to internationalnews@bizcommunity.com; also take a look at our guide "How to contribute to Bizcommunity, from op-ed pieces to news". Don't forget to follow @Biz_Retail on Twitter and join us on Facebook!



Top stories


Editorial news

Retail Trends

[2013 trends] Seven youth-influencer outreach insights
[Mongezi Mtati] In 2012, brands asked some pertinent and challenging questions pertaining to influencer outreach and seeding their products. Insights gained both as a delegate and a speaker at a number of enlightening conferences over the past year have led me to the following observations about what brands want and how Africa's youth prefer to be communicated with - from a marketing and advertising perspective. Read more >>

[2013 trends] Eyes front and centre
[Abey Mokgwatsane] How does your brand break through the clutter? If you're in the business of understanding and catering to the evolution of consumer needs, desires and expectations, look front and centre. Here are my predictions for 2013... Read more >>

[2013 trends] Growing power, vulnerability of the corporate brand
[Mike Freedman] How are P&G and Unilever differentiated? Does the Coca-Cola Company want to be known for obesity or health? Will supermarket brands be strengthened or weakened by their supply chains? The perfect storm of social media, continuing social unrest, concerns over the economy and environment will batter brands that are not resilient and adaptive, while shaking established ad agencies to their foundations. Read more >>

[2013 trends] South Africa's marketing research industry in 2013 and beyond
[Craig Kolb] It seems we are at a point where technology advances so quickly, it is almost unsettling. Of course, it is a matter of perception but, for what it is worth, my subjective experience over the past five years has been one where a disturbingly high number of 'impossibles' have suddenly become 'possible'. Read more >>

[2013 trends] Reinventing the sales function
[Peter Gilbert] Belatedly, sales - long the corporate stepchild - is emerging not only as a topic worthy of academic and executive attention but also as the business function where substantive improvement is not only doable but also capable of delivering extremely attractive improvements in shareholder returns. Read more >>

[2013 trends] Cheaper, better, faster
[Gillian Rightford] The biggest change in South Africa will be the continued growth of mobile and online, and how this affects everything we do - all of our buying habits, from deodorant to cars, and how, when and where we do it. Read more >>

[2013 trends] Social media marketing and the youth
[Bradley Maseko] The following is a breakdown of social media marketing trends for 2013.This year I take a look at both external (the youth market) and internal (business marketing efforts) trends that I predict will play a crucial role in further cementing the role of social media marketing in the overall marketing strategies for most brands and businesses seeking to effectively engage the youth market through social media platforms. Read more >>

[2013 trends] Game on for retailers going mobile
[Steve Cragg] As crisis-hit Europe continues to impact economic growth, and projections for the local economy are trimmed, the battle for a share of consumer spend is getting increasingly fierce. Retailers will rely on technology to drive innovative discount models and integrated loyalty programmes by optimising the one device every consumer has access to already - even in-store - the mobile phone. Read more >>


Retail

Truworths, Foschini updates show sales growth
[Nick Hedley] Shares in retailers Truworths International and The Foschini Group ended higher on Friday, 18 January 2013, after the groups released satisfactory sales updates, and following disappointing updates from other retailers earlier last week. Read more >>

Real wholesale trade sales up 6.7% in November
Wholesale trade sales at constant (2000) prices for November increased by 6.7% year on year (y/y) compared with a 9.7% y/y increase in October‚ Statistics SA data showed on Thursday, 17 January 2013. Read more >>

SA November retail trade sales up 3.4%
Growth in SA's retail trade sales at constant prices was much better than expected in November‚ increasing by 3.4% year on year (y/y) after a downwardly revised 0.9% (1.0%) year on year increase in October‚ figures released on Wednesday by Statistics SA showed. Read more >>

Retailers drop due to trade concerns
Retailer Mr Price was trading more than 5% lower at noon on Tuesday, 15 January 2013, and clothing company Foschini gave back more than 4%‚ due to negative retail sector sentiment after retailer Shoprite released a weaker than expected trading update on Monday. Read more >>


Banking & Finance


Brand News


Commercial Property

V&A outperforms national average for festive season
The V&A Waterfront have released its sales figures for the festive season, reporting strong trade with an overall year-on-year increase of 13% and an 8.24% year-on-year for festive season. Based on November 2012 national retail trade results, released by Statistics SA on 16 January, indicators signal that the V&A retail sales growth in December will track ahead of the national average. Read more >>


e-Commerce

Professional design of websites is crucial
[Dylan Kohlstädt] Professional design of websites is crucial, particularly as everyone is an expert when it comes to critiquing web designs. Many people believe that the way they interface with a website is the same as everyone else does, but people approach websites in individual ways. Read more >>


Exhibitions & Events

EXSA events include IFES World Summit
The Exhibition and Event Association of Southern Africa (EXSA) has announced that the International Federation of Exhibition and Event Services (IFES) is hosting its 2013 annual AGM and conference, the IFES World Summit, in Cape Town on 28-29 June 2013. This is the first time the conference will be on African soil, and it is expected to attract approximately 150 international delegates from 39 countries. Read more >>


FMCG


Franchising


Hospitality


Import/export

Wine body reports record SA exports
[Bekezela Phakathi] While farm workers in the Western Cape winelands intensify their strike, SA's wine industry on Monday, 14 January 2013, reported that exports for last year had reached 417-million litres - a new record for the sector. Read more >>


Logistics

New Webfleet logbook for Android and iPhone
TomTom has announced a new app, the Webfleet logbook for Android and iPhone, that optimises the administration process of a company's fleet, assist individuals who need to submit mileage claims each month and assist with accuracy and decreased administration Read more >>


Manufacturing

New machines to increase production at Kimberly-Clark
Kimberly-Clark South Africa (K-CSA) has introduced new infant care and feminine care machines at its Epping Mill in Cape Town. In line with its five-year expansion strategy, this will increase diaper production significantly and localise production for the strategic feminine care segment. Read more >>


Regulatory


Research

No festivity in building confidence
According to Cees Bruggemans, consulting economist to FNB, the FNB/BER Construction Confidence slowed in 4Q 2012, falling to 36 in 4Q 2012, after hitting a four-year high of 42 index points in 3Q 2012. Read more >>


Retail Marketing

[Biz Takeouts Podcast] 49: The state of e-commerce in South Africa
Find out more about the current of the South African e-commerce environment and the trends in online shopping over the past decade by listening to the podcast of last week's Biz Takeouts Marketing & Media radio show, which airs every Thursday from 5-6pm streamed live via 2oceansVibe Radio. [twitterfall] Read more >>


Retailers

Mr Price share price knocked after update
[Nick Hedley] Shares in Mr Price (MPC) fell late on Thursday, 17 January 2013, after the retailer reported that sales grew 10% during the third quarter of the financial year ending 30 March compared to the same period in the previous year‚ while comparable store sales increased by 4.4%. Read more >>

Retail sales growth fails to boost subdued outlook
[Mariam Isa] Retail sales rose faster than expected in November‚ official figures showed on Wednesday‚ but the news did little to dispel the prevailing view that the sector's outlook for this year is subdued. Read more >>

Pick n Pay appoints retail groceries manager
Pick n Pay has named Paul Marsh as divisional manager‚ groceries and perishables retail in the merchandise division. Read more >>

Retail stocks remain under pressure
[Zeenat Moorad] Negative sentiment emanating from disappointing sales updates saw shares of South African retailers come under pressure for a second day on Tuesday‚ with the JSE's general retailers index ending 3.79% lower. Read more >>

Shoprite shares lose almost 6%
Shares in Shoprite Holdings had their biggest one day drop in more than six years‚ plunging close to 6% on Monday, 14 January 2013, after an operational update from Africa's biggest grocer fell short of market expectations. Read more >>


Technology


International
High price inflation drives highest retail growth since recession began
LONDON, UK: UK retail is set to grow by 1.8% in 2013 with total retail spend hitting £300.7 billion - though this is nowhere near the pre-recession growth levels it is the highest rate of growth since the recession began. However this is largely down to rising prices, according to a report from SAS, the leader in business analytics software and services, and Verdict called How the UK will shop in 2013. Read more >>

IGA partners with Unitrade to expand to SA
CHICAGO, US / JOHANNESBURG, SA: IGA has announced that it will continue to advance its global presence by partnering with Johannesburg-based Unitrade Management Services (UMS) to bring the IGA brand back to South Africa. IGA originally moved into South Africa in 2002, but there have been no IGA stores in the country since 2008. Read more >>

QE2 to be used as luxury hotel in Asia
DUBAI, UAE: Iconic cruise ship Queen Elizabeth 2 will be upgraded into a luxury floating hotel with 500 rooms and will be moored in an Asian harbour, its Dubai owners said in a statement on Thursday (17 January). Read more >>

Google forced to pay for traffic it generates
PARIS, FRANCE: The head of the Orange said on Wednesday (16 January) it had been able to impose a deal on Google to pay for the vast amounts of traffic generated on its telecommunications networks. Read more >>

What is content marketing & why should you care
[Jessica Davis] Everyone is talking about content marketing these days - but what exactly is it and why should you care? Content marketing is a marketing activity that focuses on creating and distributing engaging, relevant, and valuable content to acquire and retain customers, and to build a stronger brand. It is the art of attracting customers to your products without an obvious sales pitch. Read more >>

More International...


Partners
How to identify bogus colleges
Is that college you have chosen a real thing? Here's how to spot the bogus one. Read more >>


Africa
KFC plans to add even more stores in Africa
[Zeenat Moorad] YUM! Restaurants International continues to expand the footprint of its KFC brand on the African continent, with plans to add stores in Tanzania, Uganda and Zimbabwe this year, the company said on Monday (14 January). Read more >>

More Africa...


Galleries
L'Ormarins Queens Plate 2013

More


Government
Floods cause havoc after weekend rains
Three children were killed in separate incidents when their homes collapsed during heavy rains in Limpopo over the weekend, authorities said on Sunday (20 January). Read more >>

SAIRR calls for BEE to be scrapped
[Paddy Hartdegen] I may have been saying this for years but now another much more august body agrees that black economic empowerment initiatives should be scrapped and South Africa should entrust its development, growth and social change to the people who are best trained to implement them - whether they are black, Indian, coloured or white. Read more >>

CCMA to facilitate Amplats retrenchments consultation
The Commission for Conciliation Mediation and Arbitration (CCMA) has been requested by Anglo American Platinum mines (Amplats) to facilitate discussions between itself and the respective unions around possible retrenchments. Read more >>

No agricultural wage deal yet, even in Clanwilliam
According to Agri SA, Tuesday's claim by Cosatu's Tony Ehrenreich that a breakthrough was achieved with a wage deal in Clanwilliam, requires clarification. Read more >>

More Government news...


Travel
The weird, wonderful, and just plain kooky hotel requests for 2012
Most hotel staff could write books about the strange side of human nature they see at work, but since discretion is the watchword none of those experiences are ever likely to see the light of day - except on the Protea Hospitality Group's annual list of weird and wonderful guest requests submitted anonymously by staff from their 125 properties all over Africa! Read more >>

Take exotic destinations with a travel concierge!
[Will Smith] Preparing for a journey but you cannot find a minute to check the availability of tickets or flights or accommodation? Then a travel concierge is just what you need. Read more >>

More Travel news...


People on the move
  • Proxama appoints new Head of Technical Sales - more info


Jobs offered

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New events to diarise

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Quotes
"In action a great heart is the chief qualification. In work, a great head. (via Brainy Quote)" - Arthur Schopenhauer
"The only way to make sense out of change is to plunge into it, move with it, and join the dance. (via Brainy Quote)" - Alan Watts
"The most practical, beautiful, workable philosophy in the world won't work - if you won't. (via trainleaders)" - John Johnson
"I honestly think it is better to be a failure at something you love than to be a success at something you hate. (via trainleaders)" - George Burns
"If at first you don't succeed, find out if the loser gets anything. (via suite101)" - Bill Lyon


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