Trade Intelligence Logo

SPAR have made a further foray into the inviting, not to mention high-margin waters of pharmacy, with the launch of a series of partnerships with independent pharmacists under the Klinicare group in the Nelson Mandela Bay area. The initiative is confirmation of their intention to accelerate the development of the third leg of a complementary retail offering which currently includes Tops and the SPAR brand itself. The Pharmacy at SPAR offering allows these businesses to benefit from branding, marketing and advertising firepower of the Verdant One and procurement muscle through SPAR’s significant buying power, well-established supply chains and extensive logistics systems. In other SPAR news, Rob Philipson, current MD of the Kwazulu-Natal Division, has been appointed to head up the newly-acquired yet underperforming Swiss business and teach them a thing or two about cleanliness, efficiency and punctuality. 

Comment: The first years of this young century were owned by Shoprite. The third decade might well belong to SPAR.

Skyfii, a name which can only be pronounced in an Aussie accent, and is in fact an Australian business, has snaffled up the contract to roll out its ‘IO' Software as a Service (SaaS) platform subscription data analytics services to 126 stores, reaching 500 in the next couple years, and the understanding that it will rub analytics group-wide if all goes well. “This type of sophisticated data analytics and customer engagement tools for venues is the future of retail and will enable us to make informed, data-led business decisions, while improving customer experiences,” says Woolies’ head geek Jan Meyer. Indeed: the insight provided by the software will help Woolies fulfil its ambition to be the leader in the personalised shopper experience, to measure the performance of stores and to optimise traffic in the aisles, inter alia. 

Comment: Next level stuff from the Dapper One, which in our humble opinion is fast becoming a global leader in retail innovation.

A quick recap of the Pick n Pay strategy, over which you have no doubt been poring in our Trade Profiles. Here goes: 1. Maximise the existing estate with a focus on next generation stores and non-food; 2. Put the customer first, delivering value through price and private label; 3. High product availability through further centralisation and improved forecasting and replenishment; 4. Make Boxer a national brand, which is a great idea and Pick n Pay’s best hope of going after Shoprite’s main market shoppers; and 5. Growth outside the home market – especially in Zimbabwe and Zambia, then in Ghana and Nigeria with a couple more geographies to follow in due course. Of concern to analysts is that Pick n Pay’s top-line sales growth continues to lag that of Shoprite, a situation this strategy seems well-placed to remedy. 

Comment: Pick n Pay’s recovery was unfortunately timed to hit the headwinds of our current economic slump. But it is becoming evident that the measures they have put in place during this difficult ambit is positioning them for more robust growth in years to come.

Big shakeup at the world’s largest manufacturer of fizzy brown sweet stuff: incoming Coca-Cola CEO and bearer of an exquisitely nobby name, James Quincey, has vowed to curb the business’ profligate ways, cutting $800m in costs every year, and planning an additional $3bn in savings. The over-arching plan is to refocus the business on developing new drinks and selling ingredients to partners. Accordingly, and as seen back here in the Beloved C., Coke has been divesting itself of bottling plants left, right and centre, and this restructuring has come with some pain – to whit, a global decline of 11% in revenues last quarter. And while there has been some belt-tightening already, there has also been a big payola for one GSD Marketing Ltd, who were appointed to do the creative on Coke’s new “One Brand” strategy, with the same branding on all four current variants, and all four featured in all advertising.

Comment: Like big tobacco before them, the world’s soft drink makers are waking up to a market that is showing signs of moving on.

So here’s an idea about how to grow the economy: let’s make stuff, then sell it! This according to Deloitte’s Mr Martyn Davies, who speaking ahead of the World Economic Forum (WEF) Africa 2017 shindig being held in – where else? – Durban, argues that the only way to grow an inclusive society is through diversification, possibly through the development of the manufacturing sector. “There is no sector like manufacturing which creates large amounts of employment,” he avers. This as the concept of inclusiveness does battle with the opportunistically-introduced idea of radical economic transformation. Also on the WEF agenda: Africa’s readiness to cash in on the digital revolution, before it cashes in on us.  

Comment: An opportune if slightly more fraught than usual moment to pout these issues on the table…

RCL FOODS might have found a buyer for the two Hammarsdale farms it has been forced to close: the eThekwini Municipality, which wants to turn them into farms/agricultural training centres for unemployed youth. Critics of the scheme believe that it behooves government to address the cause of the shutdowns, and not the symptoms.

Woolworths began its Good Business Journey ten years ago, huzzah! Here are just three of the milestones: