
THIS ISSUE: 15 Aug - 21 Aug
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Pick n Pay Murder on the shop floor
First up, a story that reminds us of the dust clouds we used to watch forming out on the field during big break when the boys had a matter or two to settle between them. Pick n Pay, you see, are stepping up their efforts to stop Massmart and specifically, Foodco, from expanding their food offering across SA, which is causing mall owners to go crying to the Competition Commission. The Big Blue is calling for the malls to enforce their exclusivity clauses, clauses that have long been a feature of the SA retail market and that they believe have been breached. While Massmart and the SA Reit Association, representing the property sector, believe that such clauses are to the detriment of Mr Soap who just wants to put food on his family’s table.
Comment: And so we wait upon the Comish.
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Shoprite The lion hungers tonight
It’s not usual for us to comment on the goings on of fast food, but this one hits home. Shoprite is pulling out all the stops, bells and whistles to rebrand and refurbish its quick-service restaurant, Hungry Lion, in the attempt to not only compete against the likes of Steers and KFC, but also to take over the world! (ahem…. ok just the southern part of our continent then). Launched 17 years ago, the chain has 168 stores in eight southern African countries, and while in the past they were placed inside or right next to a Shoprite, now only 10 remain attached to the stores.
Comment: And with Shoprite’s buying and sourcing power to fall back on, who’s to stop them.
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Woolworths A change is as good as a holiday
… Or so the saying goes. But there’s nothing like a good old-fashioned take over to really shake things up, now is there? So here’s a look-see at who is who in the David Jones / Country Rd / Woolworths zoo right about now:
- Paul Zahra, CEO of David Jones… resigns.
- His role is taken up by Iain Nairn, former CEO of Country Road.
- David Thomas, also from Country Road, will become the new COO at David Jones.
- While Witchery’s former boss, Matt Keogh, will become CEO of Country Road.
And as for the big chief himself, Mr Moir? He’s going to cut his time right down the middle between SA and Oz, while no doubt rubbing his hands together with glee.
Comment: None needed really, is there?
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Shoprite R100beeeelion - not to be sneezed at
The Big Red announced their FY2014 results on Tuesday to much gasping from the markets and financial analysts who, for not meeting their expectations, saw it fit punishment to drive their share price to a five-month low. This was despite turnover breaking the R100bn mark, hitting R102bn, a growth of +10.5% over the previous year with real growth of 5.7% after adjusting for internal inflation. Africa continues to be the star performer with turnover growing a blistering +26.8% while South African turnover, whose consumers are becoming more used to moths than Randela’s in their wallets, grew by +8.7%. Other divisions, made up of LiquorShop, MediRite, OK Franchise and the Money Market sundry offerings, delivered turnover growth of +0.3%, with OK Franchise impacted by the loss of two big buying partners over the period. “We performed extremely well in a very tough market” said Mr Basson. The group continues to invest heavily, opening a net 125 new corporate stores and the supply line to support them, all in anticipation of the next upswing in the economy.
Comment: Perhaps when we expect too much, we don’t see the real achievements that are made…. just saying.
MANUFACTURERS AND SERVICE PROVIDERS
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Country Bird Interest-ing times
To be completely honest, this isn’t the type of news to keep us up at night, but we think you should know, so here it is. Seems someone is pretty darn keen on Country Bird’s other 20% of shares not owned by investment company Synapp, and the board is going to meet up to decide what’s next. This while the company also announced that it is most likely going to record a loss for its year ended June, a result pinned on – you guessed it – cheap imports and high input prices.
Comment: But what with higher tariffs being slapped on frozen imports, the former should be taken out of the equation. So here’s to better luck next year?
TRADE ENVIRONMENT
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Retail Sales Flatlining
It’s the same story as last year this time really, with retail sales standing dead still... with ‘dead’ being the operative word here. Sales in household furniture and equipment left the biggest dent, falling by 9% in the month of June, while food and beverages continue to decline. And when people start cutting back or buying down in food, you know things aren’t rosy. What does this mean? That our economy is still heavily dependent on consumerism, and that as long as jobs are low and costs high, things aren’t really going to perk up for us… well not for the rest of this year known as ’14 anyway.
Comment: Anyone out there starting to think that perhaps the ‘good years’ were the exception, rather than the rule? Or is that just us?
IN BRIEF
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Woolworths Staking its claim
And in other Woolies’ news, the Dapper One announced that it has concluded terms to purchase the remaining 49% shareholding in its Zambian business. With four stores currently in Zambia, the move promises more stores there over the next couple years as well as an ever more consolidated foothold in our beloved continent.
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SPAR Go get ‘em
“Nice work”, “thumbs up” and “good job” is what a bunch of market analysts have to say about SPAR’s acquisition of 80% of Ireland’s BWG Group. And why not? Combined with BWG’s SPAR assets in south-west England, the local group will add 695 stores to its quiver, including 421 in Ireland, along with another 400 or so forecourt shops and neighbourhood convenience stores.

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