A big week for the sector as we welcome another listed retailer into the mix, namely Boxer, which hung out its shingle at the JSE and later on the younger, cooler A2X. Quick history: Boxer was founded in Empangeni in 1977 as ‘KwaZulu Cash & Carry’, and following its name change to Boxer in 1991, was acquired by Pick n Pay 11 years thereafter with just 35 stores and a turnover of R800m. At time of listing, the business operates over 500 stores across South Africa and eSwatini, with turnover of close to R40bn. Some analysts estimate untapped potential of R105.5bn in suitable areas with no Boxer stores. The IPO raked in R8.5bn, with Pick n Pay retaining 60% of the shares, and is the biggest IPO since 2017. “The value retail sector has the largest number of customers and is the fastest-growing segment, despite limited spending power,” says CEO Marek Masojada. “We have high brand awareness and preference within this customer segment as our unrelenting focus on unbeatable value, quality, and service resonates with the communities where we trade.”

Comment: Promising stuff for Pick n Pay, which views the listing as integral to its turnaround strategy.

It may have slipped your memory that via a joint venture with Ceylon Biscuits Limited (CBL Group), SPAR South Africa has 27 branded stores in Sri Lanka (25 of them corporate-owned and the other two franchises) that it has been operating since 2017. In March this year, it opened its first SaveMor store there too. SaveMor, you will recall, is SPAR’s offering for lower-income shoppers, stocking basic goods and an extensive private brand range, and the move appears to be aimed at attracting more member-retailers. “We made the decision that SaveMor probably is an easier stepping stone for independent retailers to enter the market than SPAR because the cost of entry is much lower,” explains SPAR CEO Angelo Swartz. Back home, SaveMor is resurgent and SPAR will unveil a concept store for its new format early in 2025, highlighting its operational efficiencies and quality product at competitive prices.

Comment: Competition for Shoprite’s similar Usave brand. And, of course, for the newly-listed Boxer.

Woolworths is considering adding nail and skin treatments at more of its existing beauty sections as it grows its beauty business. “The intention is to double our beauty business over the next three years, with R300m already invested to achieve this growth — and I’m happy to report that we’re well on our way to achieving our goal,” reports general manager for Woolworths Beauty Julie Maggs. Woolies has also opened six new standalone WCellar stores, five of them on the Witwatersrand and one in Plett. Heading north, Choppies has decided to exit Zimbabwe, and is in talks to dispose of its 30 stores there with an unnamed cash buyer. This as Zimbabwean shoppers make a big shift to informal retail, with a reported 30% loss of footfall in the formal trade. Back home in Botswana, Choppies reported a +31.8% increase in sales for the year through June, for a total of R11.1bn. Next, Big Up to the Big Save Golf Day, which this year raised R600,000 for five charities – Imbumba Foundation, The Shuffling Walking Team, Potato Foundation, Thandanani, and The Portuguese Forum Food Drive. The event also served as a valuable networking opportunity, with Sanlam, Martin & Martin, Lucky Star and Tiger Brands attending the event. Penultimately, congrats to Khethokuhle Nyawose, appointed Massmart Chief Supply Chain Officer. Finally, Takealot has opened a new DC in Durban in The Brickworks Industrial Park. The facility spans 43,000m2 and will ship up to 45,000 units per day.

Comment: Woolies is expanding in some interesting new directions, with opportunities for like-minded suppliers to come along for the ride.

With the silly season in full swing, the most sensible thing to do right now might be to take a load off and settle back in the poolside lounger with a refreshing drink, and get yourself a head start on the New Year with the Trade Intelligence 2025 FMCG Retail Outlook. The presentation brings you a detailed view of the current South African grocery landscape and what’s shaping it, an informed outlook for 2025, and a map of the opportunities for growth in this dynamic space. Presented succinctly to your team by one of Trade Intelligence’s knowledgeable analysts, Retail Outlook is ideal for getting your team up to speed at sales conferences, strategic planning sessions, and monthly team meetings. It will provide you with relevant and impactful insights, unpacking strategic implications, considerations and opportunities and inspire innovation in your team.

Comment: A powerful start to what promises to be a challenging year. For details check here.

A return to profitability for Quantum Foods, albeit on a drop in revenue of -8.9% to R6.33bn in a year it will prefer to forget. First up: bird flu, with an outbreak of the HPAI virus leading to the death of 90% of parent flock and a R37m loss in bird value for the business, as well as a knock-on effect on the egg business, which saw a -35% decline in revenue. Next, an unseemly scuffle on the board, with third-largest shareholder, Country Bird Holdings (CBH), attempting unsuccessfully to unseat some key players, which might have had something to do with the -50% decline in the share price in the final quarter. And finally, an explosion at the Malmesbury feed mill in June took one life and injured two others. Despite all of this, Quantum reported operating profit of R232m after losing R35m last year. “Results improved significantly compared to the previous year based on lower raw material prices, higher broiler efficiencies, higher egg prices, lower energy costs and strong performance from operations in Africa,” explains CFO André Muller.

Comment: Poultry, while reputedly good for the actual heart, is not for the faint of heart, as this terrible year for Quantum illustrates.

Numbers from Nampak: a +1% hike in revenue to R9.96bn, but a (wait for it) +140% increase in trading profit to R1bn as the turnaround strategy kicks in, with effective revenue growth management, cost and inefficiency extraction, profitability, and positive cash flow. Nice. Next, a blast on the vuvuzela (how 2010 of us) for AB InBev which has extended its nearly 40-year partnership with Fifa to include the Fifa Club World Cup 2025 as official beer partner, as well as Fifa World Cup 2026, which will be jointly hosted by 16 cities across Canada, Mexico, and the US. Finally, staying with booze (a strategy that has worked for us only occasionally), Pernod Ricard has recently launched on these shores something called Share Inspire Pioneer (SIP), an initiative by professionals within the hospitality, tourism, food, and beverage industries, to create a support network to navigate the future of the hospitality industry. SIP is a global initiative to recognise and drive positive change and innovation in the industry.

Comment: Anything involving positive industry-wide collaboration within a competitive framework is a good idea in our opinion.

Good news! We’re in that happy window between agonising about inflation and panicking about deflation. Short story: CPI for October was +2.8%, beating the expectations of economists (who unlike the rest of us only have to be right about stuff around 5% of the time to keep their jobs), who had it at +3%, and down from September’s +3.8%. The decline was driven by falling fuel prices and by food and non-alcoholic beverages which after hanging about in the 4.5%-4.7% range retreated to 3.6% in October, the lowest rate since November 2019. Also just in from the venerable cognoscenti at Stats SA, retail trade sales were up +0.9% year-on-year in September, with our own great sector, represented across general dealers (+4.5%) and retailers in food, beverages and tobacco in specialised stores (-2.7%), coming through in the red. Next week: more on that negative GDP number for Q3.

Comment: Still, we’ll take what we can. Lower inflation presages a happier festive season for all, shoppers and businesses alike.