
THIS ISSUE: 08 Oct - 14 Oct
After a dicey couple of years in which its attention was distracted by doings in the Antipodes, Woolies is back with a bang and wants your CV. Massmart ventures deeper into omnichannel and Checkers into loyalty, and best get those Christmas orders in right now because the supply chain is going to be a mess. All this and more in your Tatler this week. Enjoy the read and see you at our Independent Trade Forum!
YOUR NUMBERS THIS WEEK
RETAILERS AND WHOLESALERS
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Woolworths Aiming hire
The Dapper One is poised for a big play in omnichannel, advertising for over 100 specialists to advance its digital strategy, including product managers, UX and UI design experts, something rather thrillingly called scrum masters, and technical and design leads. Woolies has delivered a number of fresh innovations to the market in the last few months, including virtual try-ons for Beauty; WCellar which includes a stand-alone liquor store; an online hub and NFC-enabled shopping (that’s “tap and go” shopping for the rest of us); AI-driven recommendations, ratings and reviews; and Woolies Dash, the first on-demand retailer in the country with a full cold-chain. “Over the last three years, we have invested more than R1bn in our digital capabilities in South Africa, providing new and innovative experiences that meet evolving customer needs,” says Head of Online and Mobile, Liz Hillock.
Comment: Woolies has moved from a position of apparent complacency, after years in which it could do no wrong, into a leaner hungrier, more ambitious outfit altogether.
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Massmart Cash money
Bit of a shakeup in the upper echelons of wholesale, where Metcash CEO Jeff Adams is stepping down and will be replaced by Massmart Wholesale alum Doug Jones. Adams will return to the US having presided over a period of significant growth for the wholesale and retail giant. In other Massmart news, Makro and Builders have launched a series of mini-apps on the VodaPay super app, that will enable punters to shop online from the two stores’ catalogues using their mobile devices. Features will include almost 450 app-exclusive Makro and Builders deals, including surprise daily and R1 deals. And finally, the Men in Black have let it be known that they’ve reached an agreement for the purchase of 87.5% of the issued shares in FMCG marketplace and logistics platform, OneCart, which partners with leading retailers in South Africa to enable fast, flexible and efficient online sales and home delivery.
Comment: Massmart is making bold moves to consolidate its business and grow its online offering.
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In Brief Xtra special
Yeeehah! In your roundup this week, and in line with global trends, Checkers is launching a members’ only weekend during which its more than 8 million Xtra Savings programme members will have access to savings of up to 50% on 5,000 items unavailable to non-members at those low, low prices. Pick n Pay, in the meantime, is teaming up with Standard Bank – which has just opened a bunch of branches in PnP stores – with the launch of Standard Bank’s EasyScan, a new service that enables customers to pay for their shopping using the Standard Bank Mobile Banking app. “Our customers love convenience and the EasyScan innovation is another way we are enhancing their shopping experience,” explains Pick n Pay’s Head of Omnichannel, John Bradshaw. And in other news of The Big Blue, Clicks has been given the conditional go-ahead by the Competition Commission to acquire those 24 Pick n Pay pharmacies; and the two will still compete in the sale of OTC meds.
Comment: After a late entry into loyalty, Checkers seems intent on giving the Pick n Pay Smart Shopper programme a real run for its money.
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International Retailers Wayves of change
Unsatisfied merely with becoming a global force in deeply discounted groceries, Aldi is taking the fight to Ikea with the launch of its new online home and furniture store, which sells everything from bedding and home furnishing to kitchen essentials and candles. In the UK, amid the truck driver shortage that has brought the supply chain to its knees, Tesco has kept the shelves stocked by relying on the dear old British rail and aims to deliver 90,000 containers of goods a year to its warehouses via trains by the end of 2021, up from about 65,000 right now. Over the Channel, in the meantime, Carrefour has called off its negotiations with Auchan after the parties failed to reach agreement on a proper valuation of the shares up for grabs. The two are France’s second and fifth largest retailers respectively. And back to Blighty, where robo-retailer Ocado has invested in self-driving technology start-up, Wayve, in a partnership to develop autonomous grocery deliveries on busy city streets.
Comment: Innovation, as far as the eye can see. Heady stuff.
MANUFACTURERS AND SERVICE PROVIDERS
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Beverages Liquid assets
Don’t get used to it, but slow news week in the factories, so what the heck, we’ll do a roundup here as well, but for beverages. Yeehah, cowboy guitars etc. First up, Coca-Cola is launching a new brand rejig in which the iconic logo will hug its packaging a little more intimately, with a brand-new payoff: “Real Magic”, replacing 2016’s equally anodyne “Taste The Feeling”. And speaking of beverages, Pioneer’s Appletiser, Liquifruit and Ceres brands have recalled several batches of their product, as has Woolworths, after the detection of high levels of patulin, a mould toxin which can cause nausea, gastrointestinal disturbances, and vomiting. And in an update to this developing story, Elgin Fruit Juice has been identified as the supplier of 100% apple juice concentrate to the affected fruit juice producers and is currently under investigation. Finally, Pura Beverages, known for its ‘better-for-you’ soft drinks, has launched a new range that is lower in sugar, designed specifically for kids. Pura Kids is preservative and colourant-free, contains just 34 calories and comes in four natural flavours, and will be available at Pick n Pays and selected convenience stores around the Beloved Country.
Comment: Lots of action in the sector as South African thirsts gear up for a long, hot summer.
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Data Orbis The numbers game
The retail industry is one of the biggest creators of data on the planet. For every second of every day, retailers of all sizes are tracking the movement of products. For retailers, access to the right data has the power to streamline logistics and operations; measure price, promotion, and in-store activity performance; align with customer needs; and inform business strategy and highlight growth opportunities. Retail data is equally important to suppliers. In the past, retailers sold their data to third-party aggregators who would sell it on – now, there’s a new model: data via trading terms, in which the retailer makes data directly available to suppliers in their trading terms negotiations, generating revenue for the retailer and empowering the supplier by enabling data-driven collaboration across a shelf-connected supply chain.
Comment: For more on the data revolution, have a squizz at this report from our friends at Data Orbis.
TRADE ENVIRONMENT
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Supply Chain The Cruel Sea
The global peak shipping period, driven by holiday demand, is ramping up, and this year it is impacted cruelly by a shortage of both ships and containers, and a resulting +336% increase in shipping prices. As COVID-19 hit last year, a lot of shipping capacity was mothballed; the unexpected speed of the recovery in many parts of the world has caught the supply chain by surprise. And the response to this demand has been uneven, with the lucrative Asia/US routes given priority, and routes like the Asia/South Africa neglected. This has seen shipping costs increase tenfold here in the Beloved Country and will likely lead to disruptions in the months ahead. Right now, importers are factoring in longer lead times, holding higher levels of inventory, and finally, are struggling to manage cashflows. In the long term, Transnet’s announcement that it plans to work more with private sector operators gives cause for hope.
Comment: The impacts of COVID are far from being fully recognised and will likely make themselves felt in our economy for years to come. In the meantime, planning for Black Friday and for Christmas will no doubt be a priority.
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