There was a time when the words “centralised distribution” and “Pick n Pay” did not appear in the same sentence, unless also accompanied by the words “does not do”. This, as you know, is now a thing of the past as the focus over the last 15 years has been increasingly on improving supply chain efficiency. Now it’s joining forces in a 60/40 partnership with logistics development fund Fortress REIT to develop a 36-hectare facility in Fortress’ Eastport Logistics Park in Gauteng. The warehouse will be one of the largest FMCG distribution centres in Africa, with the capacity to grow further. “Fortress’s Eastport facility will help us deliver key logistics and supply chain innovations achieving efficiencies and growing market share at a time when faster and cheaper service of our stores has never been more important to deliver on our customer promise of low prices and reliable service,” says new Pick n Pay CEO Pieter Boone. It will also be a shot in the arm for the broader R21 area.

Comment: The turnaround of Pick n Pay began with centralised distribution. Apt that its ongoing reinvention encompasses more of the same.

Shoprite has seen a -16% YoY decline in violent and serious crime, including armed robberies and burglaries, from July 2020 to May 2021. And when we say “has seen” what we mean is “has successfully achieved,” because this reduction has, in large part, been due to the efforts of The Big Red One’s in-house team, which operating from a centralised command centre is involved in the entire process from identifying suspects to their arrest, to opposing bail in court, to working with police to ensure the accuracy and validity of the docket, to cooperating with the National Prosecuting Authority and providing evidence in court, to ensure that criminals are pursued to the furthest ends of the Law. The command centre makes extensive use of technology and software systems including electronic dockets, suspect photo albums and evidence files. A team of data and crime analysts do predictive analysis, identify suspects, and link suspects to each other and to the crime scene. This technology, including video footage and a chain of evidence, has been critical in court proceedings. The investigation team made 752 court appearances in the period in question, securing +64% more guilty findings.

Comment: This is how it’s done – with significant investment and endless grinding work to ensure that the business and the public it serves are kept safe, and future criminals deterred.

Makro recorded a +40% increase in online sales during the year we had no choice but to call 2020. Game was up +77% over the same period, while Builders grew a mind-blowing +111%, begging the previously unthinkable question: is the bakkie as we know it becoming obsolete? Now in the ‘21, Makro has decided to invest in becoming a major force in online retail locally, and a potential rival to Takealot. What’s it got going for it? First, the infrastructure: Makro’s 23 stores are ready, willing and able to be full service DCs for online ordering, and a pickup service is successfully running at four of them. Second, the people, like Sylvester John, ex-vice president for last mile delivery in Walmart’s North American division, who now leads Massmart’s e-commerce team. Thirdly, delivery: its partnership with Wumdrop gives the business the benefit of a crowdsourcing solution and the ability to grow direct deliveries to customers, improving lead times and efficiencies – their words not ours. So what’s left? The front end. In this regard, Massmart is revamping its website to offer Walmart-like ease and efficiency to the South African punter. It’s also adopting a mobile-first strategy, underpinned by its status as an anchor tenant on Vodacom’s forthcoming super app.

Comment: Exciting stuff. If there’s an existing South African retailer with the range and the reach to take on Takealot, Makro is probably it.

Had you been wondering who the UK’s cheapest retailer was for the merry month of May, it was Lidl. This according to catchily-named research outfit Which?, which measured a basket of 20 inexpensive items across the sector, including Aldi, Lidl, Waitrose, Ocado and the Big Four – Morrisons, Sainsbury’s, Tesco, and Asda – who were all hustling for last place, with Asda claiming honours there. In other bad news for Tesco, Amazon is set to become the UK’s biggest retailer by 2025, with gross sales of around €89.9bn. But take a deep breath now, Tesco, they are still only likely to rank 15th in edible grocery sales. Unless they manage to find some fresh new way to entirely disrupt retail as we know it, which … no, impossible. In other Amazon news, kudos to South African self-adhesive products brand TOWER, which has listed its range of school labels and stickers with the online giant and is already knocking it out of the park – or indeed the oval – in the UK.

Comment: Truly we are living in a time of wonders, online retailers, and German discounters.

A slow news week among the suppliers, so let’s pop our heads in to check up on our neighbours in the tobacco industry, whose noisy spat has been going on for months now if not more. The loose cigarette, as you know, is a grand old South African tradition, whether driven by economic necessity or the desire for a quick and calming puff on the way back home from work. According to the Fair Trade Independent Tobacco Association (Fita), however, BATSA and some small independent retailers have been selling loose cigarettes and giving customers R5 airtime vouchers and branded cigarette cases, in contravention, they argue, with “sections of the Tobacco Products Control Act and the Customs and Excise Act.” Not so, says BATSA general manager Johnny Moloto on Wednesday, contending that the business “strives to ensure that its business is conducted in compliance with the law at all times”.

Comment: A declining market under pressure from illegal imports and ever-tightening legislation will naturally increase the tension.

Jumping on the bandwagon of plant-based alternatives this week, and also taking the reins, conducting the rest of the band and playing a tuba solo is Nestlé, which has announced the launch of a plant-based range aimed at restaurants. The Harvest Gourmet range of products includes vegan burger patties, schnitzels, and chargrilled pieces suitable for use in dishes like wraps, sandwiches, pasta dishes and salads. The range has been perfected by Nestlé’s vast team of experts to achieve the right taste, texture, and appearance to provide menu options that do not compromise on flavour or experience. While South Africans remain a meat-loving nation, almost half of meat-eaters in a recent survey admitted to buying meat-free products in the last three months.

Comment: From cannabis to meat-free proteins, we are in the midst of a consumer revolution that may have a profound impact on our own well-being and the health of our planet.

Not great news on the economic front this week: the Organisation for Economic Co-operation and Development (OECD) has let it be known that a slow vaccine rollout and low consumer spending will probably mean that we return to proper growth only in 2025 – slowest in the world but for Argentina. It’s predicted we will grow +3.8% in 2021 off our COVID base, and +2.5% in 2022. To hit our 2022 vaccination target, we need to be administering 150,000 shots a day; currently we’re averaging 10,000. And according to the hoary sages over at StatsSA, GDP growth was up just +1.1% in the first quarter of 2021, translating into an annualised growth rate of +4.6%, with finance, mining and trade industries driving production, and household spending and changes in inventories helped spur growth on the demand side. Food and non-alcoholic beverages, however, came through at a muted +2.3% and our economy is still 2.7% smaller than it was a year ago.

Comment: Unemployment and electrical supply are two of our most urgent issues right now. Although to be fair, they’re not alone.