Tailending it somewhat in the recent slew of results and interims and trading updates is Pick n Pay, which this week released its interim trading update for the 26 weeks through August. The business, they tell us, has “delivered a resilient and positive performance, maintaining underlying momentum on sales and earnings growth.” Sales were indeed up, to the tune of +4.1%, or +8% on a normalised basis and excluding the impact of the civil unrest in July. This success it attributes to ongoing delivery on a number of strategic priorities – including the rise and rise of Boxer, a solid value proposition, and progress in the growing omnichannel offer. Regarding the profitability of the business, Pick n Pay assured punters that the numbers would reflect the continued success of the Project Future modernisation programme – a more efficient supply chain, more cost-effective store and support office operations, and better management of working capital and capital investment.

Comment: Remember when Pick n Pay was flailing somewhat? We barely do either as everything since the inception of centralised distribution seems to be working out

Woolies has decided to increase the remuneration of its store workers significantly over the next two years, investing R120m to bring its base pay up +23.5% from R33.40 an hour to R41.25 by 2023 – well above the current minimum wage of R21.69, and the minimum wage in the retail sector of R28.25. The move, says the business in its annual report, was driven by the belief that there is a “critical need to close the remuneration gap in the context of the socio-economic environment in South Africa”. It will benefit somewhere north of 20,000 store staff. As you know, Woolies has taken some flak in recent times on its executive remuneration policies. Subsequently shareholders voted against giving directors discretionary carte blanche in implementing the remuneration plan.

Comment: So, a move that goes some way to redress the ludicrous imbalance between executive and store-level pay. The gauntlet has been thrown. Who’s next?

First up, share trades over at SPAR, where the Employee Share Trust bought close on R4m worth last week and traded a further R5.9m odd in one way or another. Good to see that those in the know are bullish, whatever it portends. And speaking of power moves (see what we did there?), Shoprite has installed more than 1 million square feet of solar panels on the rooftops of stores, distribution centres and other facilities, and put solar panels on top of 811 supply trucks. “We are the biggest food retailer in Africa, and we also want to be the biggest in terms of solar use of renewable electricity," says Sustainability Manager Sanjeev Raghubir. And finally, the new Checkers is open at Chartwell Corner, Gauteng, offering an in-store Starbucks, a Kauai, and a sushi bar, plus deliveries of Krispy Kreme donuts daily, as well as the usual specialty departments – butchery, bakery and wine among them.

Comment: : Checkers is taking its task seriously as the Shoprite Group’s answer to Woolies. And while the Dapper One has history and a simple offering on its side, Checkers is bringing both the whistles and the bells.

Aldi is opening its first ever till-less store, in Utrecht, the Netherlands, where punters will roam freely under the scrutiny of multiple sensors, paying for their groceries through a dedicated app. “The system only follows the movements made by the customer and the item”, says Aldi, obviating the need for facial-recognition technology. Also in the Netherlands, rival Lidl has stopped selling cigarettes, the first chain in the country to do so, and bringing the German retailer a step closer to its goal of pulling tobacco from its shelves altogether by 2022. In the US, Walmart is staffing up for Christmas, bringing in 150,000 new staff into stores and 20,000 into the supply chain in anticipation of a chaotic year. Most will be full-time positions for this retail monster that is going absolutely gangbuster right now. Over in the UK, Ocado is already running out of delivery slots for the holidays, enraging its existing Smart Pass loyalty customers. And in France, there are rumblings of some sort of deal between Carrefour and Auchan – the latter seems to be in a buying mood in some geographies, while the former is exploring consolidation.

Comment: Funny old world, isn’t it?

Distell has let it be known in a trading update that while its talks with Heineken about the latter acquiring a controlling interest in the former are proceeding satisfactorily, there is no certainty at this stage that a deal will be concluded. “The parties are committed to finalising these outstanding issues in the shortest possible time frame and Distell will inform shareholders immediately upon their finalisation,” Distell says. In other news of booze, PayFast’s E-commerce Performance Index (PEP Index) revealed that beer, wine, and liquor was the fastest growing e-commerce category in South Africa last year, with an increase of +1,787%, against growth of total online sales of a more modest +66%, to R30.2bn. In the category of booze in particular, punters now seem to prefer ordering their tipple from the privacy and comfort of their own homes.

Comment: A brave new world. Which we at Trade Intelligence are happy to help you navigate, through our Liquor Webinar and Report which will provide an overview of the liquor landscape and insights to help you profit in it based on shopper needs and trends.

Inspired – or perhaps rattled – by the words of Greta Thunberg at the recent climate summit, snacking and petfood giant Mars have committed to new science-based climate targets to achieve net zero greenhouse gas emissions by 2050, including all those created by its suppliers and consumers. It has also promised to eliminate deforestation in its supply chain, link executive pay to cutting emissions, and bring its 20,000+ suppliers onboard to take climate action and set meaningful targets. “There are hundreds, if not, thousands of companies that have made net zero commitments,” says chief sustainability officer, Barry Parkin. “Ultimately the planet doesn’t care about the commitment, it cares about the action.” In local news of the sustainable, the Marine Stewardship Council (MSC) in partnership with I&J, is encouraging South Africans to take care of their hearts and the ocean with their ‘#FeelGoodSeafood’ campaign that links the heart-health benefits of seafood with the MSC’s ‘blue fish’ ecolabel that indicates seafood that can be traced to a sustainable source from ocean to plate.

Comment: Critical mass is in sight at least, across our industry. But meaningful measures remain crucial.

Since the onset of COVID amid an economic recession in South Africa, retailers have pulled out all the stops to satisfy the South African cash-strapped shopper’s need for value, motivating a change in focus regarding value promotions. Whereas the timing of value promotions used to be focused around month-end, retailers started implementing them more frequently at various times in the month. In fact, retailer value promotions have become the norm to South African consumers, who are now spoilt for choice. Another key shift in the product portfolio of value promotions is the emphasis on commodity items. Grocery staples and household essentials now regularly feature in multi-buy promotions and combo deals. Retailers have reported on the success of value promotions in driving sales and increased basket value – Clicks, for example, reported an increase in participation of value promotions now representing 42% of retail sales.

Comment: For more on the roles of value promotion and everyday low pricing in the lives of South African shoppers, look out for our Value Promotions report.