Last week we mentioned in passing that Shoprite had fallen victim to a data breach, compromising the names and ID numbers – but not the financial information or bank account numbers – of millions of customers in eSwatini, Namibia and Zambia. It turns out that the breach was the result of a hack by a ransomware outfit named RansomHouse, which claims that it has obtained 600 gigabytes of data “in plain text/raw photos packed in archived files, completely unprotected.” The gang, which posted a sample of the stolen data, also says that it has been in touch with Shoprite management with a view to negotiating a deal, which if it fails could see the sale or release of some of the data in question. Shoprite says it has amended its authentication processes and implemented fraud prevention and detection strategies to protect customer data. It’s also locked down access to affected areas of the network.

Comment: What have we learned, people? To stay ahead of the game, we suppose, and to ensure the secure storage of any customer data you may need to trade effectively. But you knew that already.

Last week Massmart cut the figurative ribbon on its massive new Joburg DC at Riversands, and with it lifted the figurative veil on its supply chain strategy. The 75,000m2 facility is the second of three new warehouses in Massmart’s centralised network, which serves the different trading brands across the Group. Riversands specialises in high-volume, pallet-based products, and “This facility will give us the opportunity to deliver fast-moving products … at greater speed, thanks to the use of full pallets, with no need for re-packing inside the facility,” explains COO Jonathan Molapo. Walmart provided design input on the DC, the construction of which had to be fast-tracked following last year’s social unrest and looting. Every aspect of the construction has been geared towards optimal efficiency, with maximum use of natural light, LEDs lighting with motion sensors, and borehole water, and the preservation of the nearby wetland.

Comment: Massmart’s recent travails are well known. But the business seems to be putting the building blocks for future growth in place.

How have rising prices affected the online shopping habits of South African consumers? A recent survey by Trade Intelligence reveals some surprises. Perhaps the biggest eye-opener is that 98% of online shoppers – out of nearly 900 surveyed – said they are changing their grocery shopping habits as prices rise. They are shopping around for specials, shopping at cheaper stores, and cutting back on non-essentials, for starters. And interestingly, significantly more people – 34% – are shopping more online in these straitened times than the 11% who are shopping online less. So, what’s the key takeaway? Basically, there has been a big shift from online grocery shopping as a convenient way to do your shopping to online grocery shopping as a money saver.

Comment: For more on this critical subject, have a look at this succinct and illuminating summary of the research.

First up, according to leaked docs, Amazon will be setting up shop here as soon as February next year, with the full basket of goodies including its online marketplace and prime membership. Other countries soon to enjoy its largesse or exploitative monoculture, whichever way you look at it, include Belgium, Chile, Colombia, and Nigeria. In news of retailers stepping up,Food Lover’s Market in partnership with Tru-Cape Fruit Marketing and others has collected over R1.7m – equating to over 2.5 million meals – to donate to food insecurity organisation FoodForward SA to help in its effort to communities and organisations in need. Finally, important work from SPAR, who over the next two months will once again be running its Petals Pledge a Pack initiative through which the retailer encourages customers to purchase packs of SPAR Petals Classic Sanitary Pads to help ensure that young girls don’t have to put their education on hold when they have their periods. A recent study has shown that 30% of South African girls aged 10 to 18 skip school during their menstrual cycle.

Comment: The education of girls is a social and economic bedrock for any healthy country. Great work from SPAR in helping it go unimpeded.

In India, food delivery platform Swiggy is one of the top contenders to take over Germany’s Metro AG India business. At the same time, likely frontrunners to buy a stake in the Gurugram-headquartered Metro Cash & Carry are Reliance Retail, Mukesh Ambani-controlled Reliance Industries’ (RIL) organised retail arm, and Thailand’s conglomerate Charoen Pokphand (CP) group. Meanwhile, in Blighty, Nielsen reports that punters are stepping up the number of stores they visit in search of savings by 7% from 2021 over a four-week period through May. And in the USA, iconic tiki-bar-slash-retailer Trader Joe’s has launched a new range of borderline novelty products for the summer, including a ready-to-eat dill pickle mini falafel, pappadum chips, and truffle-flavoured BBQ sauce. Fun times at the grill.

Comment: We have said it beforeTrader Joe’s

A victim of a couple of the buzziest threats to global commerce these days – i.e. the supply chain crunch and social media influencers – Revlon has filed for Chapter 11 bankruptcy in New York, with assets of $2.3bn as of late April, and debts of $3.7bn. While its brands remain popular, it has struggled to compete with new brands punted by influencers on TikTok and Instagram, to whom rivals L’Oréal and Estée Lauder have also turned to drive sales. And speaking of buzz, P&G is teaming up with Microsoft to, they say, “co-innovate to accelerate and expand P&G’s digital manufacturing platform and leverage the Industrial Internet of Things (IIoT) to bring products to consumers faster, increase customer satisfaction and improve productivity to reduce costs.” Reading between the lines, P&G has bought a whole bunch of new software from Microsoft (based on the Azure cloud computing platform) to help it use data better, streamline its processes and people management, and build a more sustainable business.

Comment: It’s to be hoped that Revlon’s Chapter 11 will help it restructure its debt and get back on top of the game in short order.

We want one thing: we want 0% foreigners in the trucking industry that’s it, that’s what we want,” says Sifiso Nyathi secretary of the All-Truck Drivers Forum, explaining the ongoing blockade of the N3. This specification apparently includes truck drivers bringing goods from neighbouring countries, in a standoff that Transport Minister Fikile Mbalula has described as “economic sabotage.” Last week in its annual Demo Day, AB InBev celebrated the birthday of its 00+ Accelerator launched in 2018 to support “sustainable innovations in supply chains.” Such innovations, the brewing giant believes, require collaboration, even with competitors. Hence the addition, last year, of funding and resources from the Coca-Cola Co., Colgate-Palmolive and Unilever. Since inception, the Accelerator has worked with around 70 firms providing mentoring and business resources – not to mention a cool $100,000 each in cash money – to pilot their technology with one of the corporate sponsors.

Comment: Co-operative endeavours. That’s how you build great businesses. And for that matter, great economies.

Bang on time and informative as always, the hoary sages over at StatsSA have released the latest retail sales numbers, which go a little something like this: the overall number increased by +3.4% year-on-year in April 2022, with the top performers being retailers in household furniture, appliances and equipment at +6.8%, retailers in textiles, clothing, footwear and leather goods at +6.4%; and general dealers at +5.4%. The great sector we call home, described as “Food, beverages and tobacco in specialised stores” grew +2.7% YOY, with growth flat for the quarter. In other economic news, inflation jumped 6.5% in May from 5.9% in April and March, breaking through the upper limit of the South African Reserve Bank’s monetary policy target range. Finally, GDP grew +1.9% in the first quarter of 2022, beating the dire prognostications of economists, with the contribution of food to the mix growing +2.5%, and household expenditure up +1.4%.

Comment: A mixed bag indeed, with good news on GDP and retail sales, but inflation – driven substantially by externalities – of greater concern.