There was a time when the most pressing question for the FMCG industry was “when the heck is Pick n Pay going to do something about centralised distribution?” Fortunately for that retail giant it saw the light, opened Longmeadow, sorted out its on-shelf issues and arrested its decline in market share. So pivotal to the business has the move been that Longmeadow is now running out of space, and Pick n Pay and partner Fortress Reit are developing a new DC, in Gauteng, Eastport, to consolidate Longmeadow with three smaller facilities. Scheduled for completion in 2023, Eastport will cost around R2bn, of which Pick n Pay’s tab will be R1.2bn. The DC will bring all groceries, perishables and fresh produce, general merchandise and imported goods under one roof, and will serve stores in Gauteng, Mpumalanga, the Free State, North West and Limpopo, and some stores in the Northern Cape.

Comment: Any thoughts, (Pick n Pay CEO) Mr (Pieter) Boone? “It will also have capacity to support Pick n Pay’s store expansion plans and will cater for future customer demand.”

Kudos to Woolies, which, it was recently announced, is a winner of Oracle’s Change Agent Sustainability Awards, given to businesses which incorporate sustainability into their operational strategies – notably by using Oracle tech and products. Looking to advance its Good Business Journey, a commitment that spills into every product, Woolies deployed the Oracle Retail Brand Compliance Management Cloud Service (ORBC) to capture all food sustainability-related product data and report on those metrics. “As part of our GBJ commitment it is imperative for every product sold at Woolworths to have a sustainability attribute,” explains Latiefa Behardien, Woolworths Foods Chief Technology and Sustainability Officer. “This attribute needs to be identified, measured, independently audited and reported on in our annual GBJ report. Capturing these attributes in the Oracle Retail Brand Compliance Management Cloud Service has transformed our reporting systems.” Woolies joins as a recipient outfits like Japan’s Ministry of the Environment for its work in energy-efficient utilities and Boston-based Oceanworks, which has created a global marketplace for recycled plastics.

Comment: With sustainability it’s not just the why and the what that’s important, but as demonstrated here, the how.

In a rivalry that echoes the Walmart/Amazon dustup in the US, Makro and Takealot are going head-to-head here in the S of A. Massmart, you will recall, acquired the last-mile delivery outfit WumDrop, and recently signed a deal for the purchase of 87.5% of marketplace and logistics platform OneCart. There’s work to be done though: In a recent price comparison across an online basket of home electronics, they came in around 8% pricier than Takealot. Next up: digging a little deeper into last week’s Clicks interims, what’s up with UPD? The wholesaler/distributor has traditionally been the Group’s star performer, turnover wise, but turnover declined there to the tune of -3.6% for the period in question. Apparently, sales to private hospitals and independent pharmacies were down, and to make matters worse costs were up +8%. Finally, to Shoprite, which continues to expand its footprint, opening the first supermarket in Emvelo, Mpumalanga, and another in Tshepiso Shopping Centre, Vanderbijlpark.

Comment: UPD will surely be a priority for Clicks in the next reporting period, as rival Dis-Chem is a strong competitor in the distribution business.

Abuse of retail staff by customers has been on the increase globally, coinciding with the onset of mask mandates, and the benighted wasteland of Australia has been no exception: according to the National Retail Association found that more than 88% of retail workers were subject to physical or verbal abuse from customers in 2020 – causing retailers Woolworths (not our one), Target and Bunnings to conduct body-camera trials in select locations. In the US, grocery conglomerate Albertsons recently launched a new express grocery delivery service with DoorDash and is extending the availability of Uber and Uber Eats grocery delivery to more than 2,000 of its stores. So, taking delivery seriously then. Finally, highlighting again the importance of this recently added but now essential service, Sainsbury’s punters are in a Twitter tizzy about the UK retailer’s intention to up its annual ‘anytime delivery pass’ from £60 to £80, and its ‘midweek delivery pass’ from £30 to £40, with many of them declaring their intention to take their custom elsewhere.

Comment: The rise of home delivery is perhaps the greatest revolution in retail since the invention of the gondola end? The Barcode maybe? Retailers not getting onboard with it will lose big time.

Premium shopping experiences only work in premium locations. And that’s where you’d be wrong. Take a look at Neighborly, a “lifestyle grocery store” in the very heart of Soweto. Clean, slick, organised and completely innovative, Neighborly is bringing shopping of distinction to the doorstep of South Africans who would otherwise have to travel half an hour at least for a similar experience. But don’t take our word for it. Let the pictures tell the story, here.

Comment: Brilliant, innovative and about time. May stores like Neighborly survive and thrive.

There’s been a dust up in the Supreme Court of Appeal about the right of the Advertising Regulatory Board (ARB) to consider and make decisions regarding the advertising of non-members – a right the court in its wisdom has upheld. The whole thing started when Colgate complained to the ARB about an advert by Bliss Brands for its SECUREX soap, claiming that Bliss Brands had exploited the advertising goodwill and the “packaging architecture” of Colgate’s PROTEX. When the ARB upheld Colgate’s rights in the matter, Bliss Brands took the matter to the Supreme Court where – long story short – it initially won on the grounds that the ARB had no jurisdiction over non-members like Bliss under any circumstances. On appeal, the Court found that in fact the ARB’s powers do have their basis in law and is entitled to consider and make decisions on the advertising of non-members and guide its members accordingly.

Comment: It occurs to us that if everyone punting brands was required to belong to a regulatory body, such unpleasantness might be, if not avoided, more easily resolved.

Some news from our good friends at Joekels Tea, which launched at around the same time as this august publication, and whom we covered in our very first issue. Anyway: their Laager brand (which they acquired from Unilever back in the day) is partnering up with philanthropist, radio presenter and rooibos afficionado Mohale Motaung, who will join them in promoting the social and health benefits of the soothing cup. He joins chefs Lebo and Tebo Ndala and dietitian Mbali Mapholi as an ambassador for the venerable but extremely cool brand. In other news of celebrity endorsements, Nescafé Gold kicked off its 2022 winter campaign, Crafted Beyond Compare, in partnership with Nungu Diamonds, fashion designer David Tlale, chef Luke Dale-Roberts and designer Casey Jeanne, who will each craft pieces or sensorial experiences that celebrate the senses of taste, touch, sight and smell as prizes for lucky winners.

Comment: Great brands, brilliant promotions. That’s how we do it here Mzansi.

Embattled South African consumers are facing a perfect storm of rising prices on three fronts: food, fuel and electricity, and this threatens to send inflation spinning away beyond the reach of the Government’s once-reasonable targeted band of 3 to 6%. While the cost of petrol went down by 12c a litre, the price of diesel rose by over 90c, and the cost of illuminating paraffin – a staple for many households – by as much as 80c. On the food front, a range of factors, including the war in Ukraine and a massively disrupted global supply chain, have seen prices of essential foods increase above headline inflation. According to the Pietermaritzburg Economic Justice and Dignity Group, staples such as polony, apples, chicken livers, and beef liver have all seen an increase by over +20% in price compared to April last year, and the price of cooking oil has gone up by +42%. And – thanks Eskom – household electricity prices went up +9.6% in April, with another +7.5% expected in July.

Comment: As we’ve seen, these pressures are threatening not just our economic well-being as a country, but the fabric of our society.