A so-so set of interims from Dis-Chem for the six months through August, with Group revenue +9.6% to R19.6bn YoY, with retail revenue growth +7.1%. Dispensary sales were a big earner, accounting for 37.3% of the Retail haul. No mention of internal inflation, though, which suggests that underlying volumes may have flattened or even declined. And market shares declined in all other categories, including Baby (excl. Baby City), Healthcare and Medical, and Personal Care and Beauty. Store openings are lagging too: of the 22 planned for the current financial year, a net of only six have opened over the prior 12 months, for a total haul of 274 – and this, says CEO Rui Morais, has been a drag on both sales and market share. On the upside, operating profit grew a very pleasing +17.5% to R1.0bn. And another bright spot was Wholesale at +10.1%, thanks to a particularly strong performance from external sales. A potential earner down the line is the Integrated Healthcare System with the launch of Dis-Chem Life (insurance) in the next few months, joining Dis-Chem Health (medical insurance) in the mix. For more on the results, read our excellent summary here.

Comment: As a relatively newly listed retailer competing with Clicks, Dis-Chem is having to keep many balls in the air.

The intimidatingly smart analysts at Trade Intelligence have calculated the value of the FMCG e-commerce segment of the market at R13.9bn in 2023, or 1.8% of total FMCG retail, which TBH, as you young people like to say, doesn’t seem much. But its study did factor in YoY growth of 44.1%, and retailers and shoppers alike clearly have big plans for the channel. In surveys of online shoppers, the majority say they plan to shop online (for groceries and beyond) more in future. Additionally, digital access and infrastructure are still improving, which will facilitate access to online shopping for more people, and grocery shopping is starting to leverage the power of social media. And international players like Shein and Temu are growing the overall e-commerce market, potentially being a ‘gateway drug’ for online grocery shopping – see for yourself in our latest article on the topic.

Comment: And for more on the e-commerce channel, its size, growth forecast and shopper insights, have a look at the indispensable Trade Intelligence E-Commerce Channel Report.

Nice work from Woolies, which has established that with good route planning the difference between operating an electric vehicle (EV) or an internal combustion engine (ICE) vehicle can be negligible, meaning that the EV fleet is effectively cost-neutral. In 2023 Woolworths, in partnership with DSV and Everlectric, added electric panel vans to its fleet for the delivery of online food purchases in SA, to reduce its carbon footprint and promote sustainability in the retail industry. Next, Checkers’ Little Shop trinkets are big business – not just for the retailer itself, but for collectors and traders of the tiny items. For example, the replica shopping trolley, part of the Discovery Vitality series, has become the most highly sought-after collectable, selling for a mind-boggling R500 to R1,000 on Facebook Marketplace. Finally, Shoprite has been given the nod by the Competition Commission to buy four liquor stores, two of them from SPAR, one from Pick n Pay.

Comment: As the consolidation of SA’s FMCG retail sector tightens, we will at some point have to have the conversation about how big is too big.

A cool financial sector collab for Pick n Pay, which has teamed up with FNB to offer qualifying FNB Private Banking eBucks customers up to 30% of their spend back in eBucks when using Pick n Pay’s asap! on-demand delivery service, and up to 20% back from all items purchased at Pick n Pay in store. Further afield, Sainsbury’s is selling the majority of its banking business to NatWest. The assets to be taken over by the UK lender include £1.4bn in unsecured personal loans, £1.1bn in credit card balances and about £2.6bn of customer deposits, boosting NatWest’s customer base by about a million. However, the Sainsbury’s Bank brand, its ATMs, insurance and travel money businesses, and Argos Financial Services are not part of the deal. Also in the UK, Tesco has completed the sale of its banking operations and started an exclusive 10-year partnership with Barclays, combining Tesco’s reach with Barclays’ financial services capabilities.

Comment: There is a complex and mutually profitable set of partnerships to be found at the nexus of retail and banking.

Something about reporting on Rainbow Chicken’s results feels like a return to simpler, better times, yet here we are. The newly listed RCL spinoff has reported a +7.9% increase in revenue to R14.5bn for the year through June due to higher retail and wholesale volumes, effective cost management, and a reduction in load-shedding costs. Earnings before interest, taxes, depreciation, amortisation and impairments – the way they have chosen to depict the profitability of the business this round – increased from R38.6m to R637.2m YoY. “Notwithstanding the positive traction achieved to date, there remains further work to be done,” notes the business, “[…] and Rainbow intends to continue the implementation of this strategy towards becoming a market-leading, low-cost producer in the SA environment through consistent focus on ‘brilliant basics’ and best-in-class farming practices, product quality, cost control, and investment in the Group’s infrastructure and asset base, the combination of which is expected to drive strongly improved profitability and financial returns.”

Comment: The return of this poultry giant is going to be interesting to watch – and might create opportunities for brands and suppliers with complementary lines and offerings.

Among the many items that may now be delivered to the doors of South Africa’s online shoppers within an hour is the full range of Lindt goodies, following the announcement of an official partnership with OneCart. “We’re excited to bring Lindt chocolates to OneCart’s platform and amplify both our digital reach and quick-commerce strategies,” says Digital Marketing & E-Commerce Manager Mia Graham. Moving on, staying with innovation, Futurelife^® has launched a new kids’ range, Rice Pops, which is attractively packaged for the demographic, low in sugar, and boosted with 30% of the daily requirements of three essential minerals: zinc, copper, and selenium. Next, Oceana has let it be known that HEPS are likely to be up 15%-19% for the year through September, off the back of consistent demand for inexpensive protein and a good performance from its US Daybrook operation. And finally, Heineken is ramping up the promotion of its mobile app, The Boring Mode, which discourages smartphone use at in-person social gatherings.

Comment: Smartphones have damaged our culture in ways that we’re only just beginning to reckon with. Great work from Heineken.

Some excellent work from PSG, whose Think Big SA 2024 competition, arranged together with Economic Research Southern Africa, sought to get South Africans to propose novel ideas for making the economy grow faster. One of the top papers came from economic historian Prof Johan Fourie of Stellenbosch, who proposes that to achieve faster and more inclusive growth, South Africa needs policies that drive innovation and strengthen state capacity – and that these policies should be founded on something he calls “a new narrative of progress” based on the idea that economic growth can be a positive-sum game that benefits everyone. The winning paper was written by PhD student Teboho Nthoana, from North-West University. He argues that one of the drivers of this growth could be the township economy, which occupies a land mass bigger than that of Joburg and Durban combined and is home to about 40% of the country’s urban population – a vital but underutilised engine for this inclusive growth.

Comment: South Africa is navigating a stormy new morning politically. It’s an opportune time for all of us to embrace positive new economic thinking too.