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There was a time when pundits sadly agreed that South Africa’s informal sector was to be consigned to the warehouse of history, sent there by the inexorable forces of modern retail, with which it could not compete on price, range, and convenience. Now, our colleagues at NielsenIQ tell us, the traditional trade is growing at a faster rate than the dominant modern trade sector, as shoppers change their habits in the face of declining disposable income. The traditional trade sector – comprising non-branded superettes and spaza shops – grew +23.6% in the year through June to R187bn, against +14.7% by modern retailers. Moreover, the traditional trade now accounts for 27.4% of FMCG sales. The proximity of these retailers to their markets has certainly helped in these straitened post-COVID times, but so too have the changing route-to-market strategies of manufacturers which have effectively trimmed down supply chain nodes for independents and resulted in significant cost savings, allowing them to compete on price.

Comment: For more on the forces shaping independent and informal retail you may wish to have a look at this valuable Trade Intelligence report.

Game is offering customers select dry grocery staples and toiletries at a notably discounted price, equivalent to what they’d pay at wholesale. Says, VP of Merchandise Mark Scott, “The iGroza campaign embodies our commitment to supporting our customers during these tough times.” Moving on, spare a thought for SPAR’s non-execs, who haven’t received a brass farthing for their deliberations since March 1. SPAR will hold a special general meeting in early September for shareholders to vote on directors’ pay, after February’s AGM vote on remuneration failed to pass, leaving them skint. The remuneration committee has since restructured the proposed fees, which are now benchmarked against an industry-based peer group. Next, in a fine celebration of Women’s Month, Shoprite have trained Africa’s first women Master Butchers, 13 out of an intake of 62, who received the valuable global certification after graduating from the Shoprite Group’s Master Meat Artisan Programme.

Comment: Excellent work, Shoprite – and of course, the new graduates. The collective noun for butchers is of course a block. Or a slab. A slice?

In the UK, which is battling persistently high food prices, Tesco has announced that it will be reducing the number of branded items in its more than 2,000 Express convenience stores, which will see over 50 key everyday products replaced with cheaper items, many of them private brands, and some of them less than a third of the price of the products they replace. “The move comes in response to the supermarket’s internal shopping data, which shows that price-conscious customers are increasingly turning to own-brand products,” said the retailer. Speaking of own brands, Amazon is cutting back on many of its house brands, notably in clothing and furniture, in the face of anti-trust legislation and even as brick and mortar retailers continue to eat the online megastore’s lunch; Amazon possesses only 6.4% of the online grocery market. Finally, in Brazil, the wholesale arm of Carrefour, Atacadao, has announced that it has created an incredible 15,000 jobs in the first six months of 2023, as it pursues an aggressive expansive strategy, opening 49 stores over the first half of the year. Overall, Brazil has created 1.02 million new jobs this year.

Comment: But back to private brands – we’ve just updated and revised our insightful Private Brands report, of which you can learn more about here.

In some positive news at a time when we could all use some, the CEOs of RCL FOODS and Astral – Paul Cruikshank and Chris Schutte respectively – have thrown their figurative and symbolic weight in with the Pledge to Build South Africa initiative, joining 113 other business leaders in a statement which reads “As South African business leaders, we firmly believe in the immense potential of our country. We are committed to building it and have come together to address the current challenges with the aim of achieving sustainable, inclusive economic growth. Through strategic partnerships and focused interventions, we have the power to make a significant and positive impact on our nation, creating hope for all South Africans. We are resolutely committed to being a force for good.” The businesses these CEOs represent across all sectors in SA are jointly valued at over R11tr and employ more than 1.2 million people.

Comment: Business has a unique role and responsibility in lifting South Africa out of its current slump. The Pledge is an inspiring and positive development, in which the leadership of our own great industry is playing an active part.

Some changes around the mahogany table over at Premier Foods, where Iaan van Heerden will take over the chair from long-serving Corrie Roodt, who steps down at the end of the month, with economist Wandile Sihlobo assuming the hotseat on the social and ethics committee, Harish Ramsumer chancing his arm on audit and risk, and Jonathan Matthews signing the cheques on the remuneration and nomination committee. Next, as Women’s Month enters its final weeks, Tiger Brands has announced that its target is to reach 50% gender representation in its leadership ranks by 2030, with a focus on increasing women’s participation in leadership development, career growth and progression initiatives. Tiger currently employs close to 4,000 women at all levels, in line with the average in South Africa’s manufacturing sector of 25%. Finally, Diageo’s Captain Morgan is launching its first ever Pan-African campaign called ‘Spice on Africa’, based around Nigerian chanteuse Yemi Alade’s Afrobeat banger ‘Baddie’, and running through the line with TV, social and digital edits, and appearing in out-of-home and both on- and off-trade retail channels.

Comment: That’s a lot of advertising. Sure, Africa isn’t a country. But it is a market.