
THIS ISSUE: 21 Jun - 26 Jun
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Woolworths Waaait a minute
Last week we reported that the Dapper One would be slashing prices by up to 30% in order to gain market share in the far eastern reaches of our great continent. “Not so,” cries Woolies, in what appears to have been a case of luckless misinterpretation of a Woolworths’ statement by our colleagues at the east African daily in which the report first appeared. “As we expand our African footprint, we are working hard to offer our customers in these new markets the best possible value for our unique quality,” says Woolies. “We’ve been able to reposition prices to offer our customers even better value for money,” and presumably to remain as competitive as possible. But alas no radical slashing of prices as we were all falsely led to believe.
Comment: …tut tut.
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Shoprite East of Eden
And in more news of an African flavour, Shoprite’s exec Director, one Mr Christo Wiese, has warned against brashly going where no one has gone before, sagely reminding us all that expansion across the continent will take time and effort. “People say Africa’s time has come, but I can tell you, it is taking time to get going,” says he. Among the challenges facing our bravest retail pioneers in Africa are logistics, the lack of shopping malls and high streets and a fragmented supply chain which means you have to pretty much bring you own paper plates and plastic forks to the party. But what’s this? Another market just waiting to be exposed? Well yes, if you believe that Shoprite plans on opening as many stores in Eastern Europe this year as it has in the whole of Africa over the last 15.
Comment: And why shouldn’t you?
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Retailers Generally If it ain’t broke…
Why overcomplicate things when you can still pack a punch by sticking to the basics? It seems that’s what the majority of retail execs across the world are thinking right now anyway, as revealed by the appropriately and uncomplicatedly named Consumer Executive Top of Mind Survey. Executives still identify sales growth, product development and cost reduction programmes as key drivers of profitability (Retailing 101), while you might be surprised to find out that the new approach of IT transformation ranked highly in only one-fifth of businesses surveyed. Back home, the results were a little different, with new market expansion ranking high on the agenda, following sales growth and cost reduction.
Comment: Which really should come as no surprise if you paid attention in our first two stories.
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Chicken Imports A poultry affair
Hold onto your feather hats, there’s a host of acronyms in this one. Amie (not the muse of the Counting Crows tune but The Association of Meat Importers and Exporters) has won a court bid to make further submissions to the International Trade Administration Commission (Itac) regarding its opposition to the South African Poultry Association’s (SAPA) application to increase tariffs on imported frozen poultry. The increase you see, which could be as high as 82% versus the current 24% import duty, could mean that the only source of protein for many South Africans becomes downright unaffordable, according to Amie (not the girl in the song). Amie (the association) has also flagged the possibility that as many as 15,000 people who cut, repackage and distribute frozen chicken could lose their jobs as a result. Itac, which has resolved not to make any recommendations to the trade and industry minister until the commission meets again, has assured those involved that the investigation “is consistent with the negotiated WTO-bound most favoured nation ceiling rates”.
Comment: Sounds promising, although we can’t really be sure.
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Kraft Foods A humana touch
Kraft Foods has donated R1million to the Humana People to People association as a second instalment in its three- year phased donation to the NGO. Last year, the food giant best known for some of our favourite choccies, biccies and strong cup of java, donated an equally sizeable sum of R1.8million as part of its Sustainable Agriculture Project. Two ‘Farmers Clubs’ in Qinqana North and Qinqana South, each with 200 farmers, have been aided by the project thus far and this most recent financial boost will go towards the installation of rope pumps, a borehole, and irrigation tanks, as well as training the farmers in the maintenance of the water pumps.
Comment: Good on ya Kraft – a food giant helping to alleviate the scourge of hunger where it really counts.
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Inflation At long last
In some decidedly more upbeat news of the macroeconomic type (yes, you read right), consumer inflation slowed somewhat in the merry month of May to 5.6% YOY, down from 5.9% in April. This according to some experts is “great news” as it points to an easing of demand pressures, while others were more subdued in their enthusiasm, saying that the main reason for the drop was the lower fuel price and that the now oh-so-weak ront will mean that the trend is short lived. In fact some economists expect dear old Madame Inflation to rise above the upper target of 6% by Q3 of this year.
Comment: Kill joys, we say… allow us to revel in our happy mirth a while longer, won’t you?
IN BRIEF
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Cipla Medpro Because there’s no “I” in team
Cipla Medpro SA has announced that it will be appointing not one, but two CEOs to serve on a temporary basis until a permanent chief executive is found. The posts will be filled by current deputy chiefs, Skhumbuzo Ngozwana and Mark James van Lill Sardi (whose initials are something to behold). The deputies will be replacing acting CEO Johan du Preez, effective 1 July.
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Food & Beverage Cheers!
Food and beverage sales increased by 3.6% in April compared with the previous year according to StatsSA, that government department which knows a thing or two about these things. Positive growth was recorded for food at 4%, ‘other’ income – which we can only presume includes wares such as Ruthie’s delicious homemade oats clusters sold for 60c during big break – at 1.3% and bar sales at 0.6%.

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