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Walmart is the Big Galoot of retail – large, well-intentioned, but with a propensity for bumping into things with comically disastrous consequences. Nigeria, ditto, of Africa. A match made in Big Galoot heaven, then, hold onto the crockery! Technically, Walmart already is in Nigeria, of course, through its part ownership of Massmart which has six stores there. But it has grander ambitions, hence a recent series of meetings with the Governor of Lagos State, and on some as yet undetermined day in the near future, the Nigerian People Of Walmart will soon have their very own big-box catwalk. Once in Nigeria, Walmart will face headwinds from Shoprite, which has plans for 800 stores in that still-promising economy. 

Comment: What remains unclear here is how Massmart will feature in the rollout – perhaps there’ll be a rebranding of existing outlets? We speculate.

Walmart is the Big Galoot of retail – large, well-intentioned, but with a propensity for bumping into things with comically disastrous consequences. Nigeria, ditto, of Africa. A match made in Big Galoot heaven, then, hold onto the crockery! Technically, Walmart already is in Nigeria, of course, through its part ownership of Massmart which has six stores there. But it has grander ambitions, hence a recent series of meetings with the Governor of Lagos State, and on some as yet undetermined day in the near future, the Nigerian People Of Walmart will soon have their very own big-box catwalk. Once in Nigeria, Walmart will face headwinds from Shoprite, which has plans for 800 stores in that still-promising economy. 

Comment: What remains unclear here is how Massmart will feature in the rollout – perhaps there’ll be a rebranding of existing outlets? We speculate.

The restoration of Pick n Pay’s market share has been exercising some of the country’s finest minds lately. Certainly, it has the analysts concerned, and reading between the lines, the management of that great business, too. Hence the announcement this week that it wants to up the pace of store openings – from 100 last year to a sensibly unspecified improvement on that this year. They are also eager to up their employment numbers – they employed 3,000 new staff last year, for a total of 49,000, and plan to go another 5,000 this year. Shoprite currently employ 123,000 people, and Woolies 28,000. As much as a third of staff in the industry are employed through labour brokers, which retailers aver is necessary due to high rates of absenteeism. 

Comment: Although it also reduces the load on HR and the payroll, just sayin’…

This being something of a slow news week, we thought we’d let you know about an unstoppable express train barrelling down upon our retail sector. Or perhaps it’s on another track altogether; time will tell. In the UK, sales at the big three – Asda, Tesco, Sainsbury’s – have declined for the past twelve weeks. At discount newcomers Aldi and Lidl, however, they have skyrocketed, to the tune of 17% and 11% respectively, as punters discover that cheap, unbranded, quality groceries are more than adequate to their requirements in these straitened times. Are there any moves afoot for a South African invasion? In Australia, Aldi (which is running similar rings around the locals) stocks South African products like Bokomo Rusks, Pronutro, Biltong and Steers Sauce for all of our CAs and dentists who have made their home on those arid shores. 

Comment: Is there room for an Aldi in SA? Anyone, anyone?

Pioneer’s acquisition, for a rumoured R400million from Durban whizzkid Paul Saad (incidental brother of Aspen’s Stephen) has been a canny move, according to analysts. Futurelife already occupies acres of valuable shelf space across the country, a plus for Pioneer. However, Pioneer’s juggernaut of a distribution network will take the brand places it never imagined it could get. Futurelife plugs into a growing global – and local – penchant for functional foods, which offer nutritional and broader health benefits. And finally, it gives Pioneer an established brand into which to slot other product lines, growing its presence in cereals without having to bring anything totally new to a crowded market. 

Comment: Nice one, and neatly in line with Pioneer’s new strategy of focusing on premium branded products rather than commodities.

RCL Foods, née Rainbow, “plays in the fast-moving consumer goods space” according to a hackneyed description in the Business Report. Now they will be playing in the verdant spaces between the trees and cassava fields of Uganda, where they have just acquired 33.5% of a local poultry producer. HMH owns a feed mill, broiler farms and processing plant, and is the property of the Hudani and Manji families, who sold their stake for the surprisingly modest fee of R58.9million in cash, a drop in the ocean for RCL, which grew revenue 38.8% to R12billion in the six months to December. This marks a first step into the vibrant and growing East African trade for RCL. 

Comment: An excellent move, taking on a tricky market with a local partner, from a business which seems to have forgotten how to put a foot wrong. But what, exactly will they be playing? Hmm?

In recent years – which we suppose means post-copper boom – nine shopping malls have opened in the Zambian capital of Lusaka. This in a market which was once dominated by three state-owned retailers and a profusion of pavement traders. These malls, like so many across Africa, are catering to the needs and desires of a growing middle class which sees status in shopping there, and they are attracting all sorts of business – many of them South African, but don’t rest on those laurels – from supermarkets to food service. By 2020, it is estimated, Africa’s consumer industries will have grown by more than $400bn. And by 2050, a quarter of all humans will live on the African continent. This is going to create all sorts of pressures and challenges. But also, of course, opportunities. 

Comment: And commerce, like cockroaches, being impervious to disaster, most of these people will be needing somewhere to shop.

In the UK, Woolworths (no relation) are selling hand over fist the weird and misshapen fruit and veg that occur so readily in nature but which would never find their way into the homogenous racks and fridges of our own Dapper retailer. The naturally formed comestibles are purveyed under the brand “The Odd Bunch”, and since the introduction of the genius idea in December last year, over 14million kgs of produce have been sold that otherwise would have been binned. There is hope.

Unilever has entered into a deal with the Chinese Amazon, Alibaba, that will help it expand its digital reach in one of the world’s biggest markets. Le Grand Bleu will get access to big (and we do mean big) data from the online giant’s marketing wing, Alimama and thus emboldened the happy pair will “jointly innovate in big data analytics application, cross-border e-commerce, and supply chain management.” If you thought the Chinese were inscrutable, try Chinese online marketing jargon…