Bringing together its penchant for supplying only the finest of beverages to a thirsty public with its reputation as a destination for domestic technology is Makro, which in partnership with Pernod-Ricard has launched something called a “digital premium liquor experience” in its Woodmead Liquor store. The in-store immersive digital installation provides intrigued punters with interactive digital experiences showcasing the distillers’ topline brands – Chivas, Glenlivet and Jameson – with attractions that include the Chivas personality test booth, the Glenlivet whiskey pairing interactive station and the Jameson mixology quiz. Essentially, then, an in-store promotion, but one which seems to bring the best of both bricks and clicks together. And speaking of liquor – if you have an interest in the subject you will want to explore the Trade Intelligence South African Liquor Report, a comprehensive overview of who’s innovating and what trends are barrelling towards your business – if you’ll forgive the expression – as we speak.

Comment: A textbook piece of marketing at retail, and very much in line with Makro’s position both as a destination liquor store and a rising force in omnichannel.

Store openings this week from Checkers, the first a high-end FreshX supermarket in Gqeberha’s Boardwalk Mall, offering the better-heeled punter a sushi bar, fresh oysters, high-end confectioneries, stone-baked pizzas, a Foreign Ground coffee shop, and luxury cakes. Interestingly, the mall’s other attractions include one of the Shoprite Group’s standalone Little Me baby store, and its pet format, Petshop Science. Fresh X has been going for absolutely yonks, with the first going live in 2017, and with 68 on the ground they show no sign of letting up. Speaking of Little Mes, Checkers has opened its second Cape Town outlet, in Sunningdale’s Table Bay mall, with the usual offer of an extensive range of baby and toddler products from the best local and international brands (including Stokke) at supermarket prices, and with specialist in-store employees on standby to assist customers. This as competitors like Game and Mr Price enter the arms race with their own blends of standard baby brands and cheaper fare.

Comment: Some years ago, we were often heard to wonder where on earth SA’s large, consolidated retail groups could possibly grow. Now we’re beginning to know.

Some pretty big news breaking this week is that Millat Convenience, a subsidiary of Millat Group, has announced that it will be bringing convenience retail brand Circle K to South Africa, with its first store set to open in Gauteng in October 2022. The Circle K brand offers fresh food, beverages, and other convenience fare, as well as fuel and EV charging stations. It’s one of the biggest convenience retail brands stateside, with over 7,000 outlets. More detail to follow but reading between the lines it could be some sort of a forecourt deal. Also coming in the rapidly declining months of this year, is Dis-Chem’s new ‘extra by Dis-Chem’ rewards programme, exclusive to Dis-Chem Health and Kaelo policyholders, which offers members 20% off on a basket of 2,500 health-adjacent products and follows Dis-Chem’s naming convention of bonkers punctuation. extra, says Dis-Chem, will be automatically applied at till points or when shopping online, and is designed to encourage, reward and make it possible for policyholders to make healthy choices.

Comment: Big news indeed re. Circle K – a global brand in an increasingly competitive sector.

In the UK, ,Aldi has reported a worrying -79% fall in operating profit in 2021, to £60.2m, but remains upbeat on the acceleration of trading in the second half as COVID restrictions ease and rising living costs send even wealthier Brits to the discounters. Still, sales rose only +0.9% to £13.6bn. In Kuala Lumpur, Malaysia, delivery outfit HappyFresh has shut its doors after seven years in business. It has, however, secured fresh funding and will resume operations in its hometown. Not unrelated, in the US, Instacart, which was valued at US$39bn in 2021, has slashed its internal valuation to the tune of about 40% a year later – to be expected as post-COVID shoppers weight the inconvenience of a shopping trip with delivery fees in an inflationary ambit. Next up, Oman has a new SPAR, bringing a much-needed touch of green to that arid landscape, after SPAR International granted a licence to local trading conglomerate Khimji Ramdas, which has interests in trading, distribution, retailing, training, restaurants, and manufacturing. Finally, back to the UK, where the cost-of-living crisis has put Tesco under pressure to further up the pay of its hourly workers to match those of rivals. Tesco’s staff are currently on a minimum of £10 an hour after a +5% increase in July.

Comment: A deeply unsettled ambit, with inflation hitting a post-COVID shakeup, and slamming into a labour shortage, on the corner of Ennui and Dread.

A slow news week, it seems, so let’s take a peek under the bonnet of a business that supplies ingredients to manufacturers, in this case Kerry, the self-described world’s leading taste and nutrition company. Kerry has announced that it has come up with an innovative texture system that will replace the functionality of locust bean gum (LBG) in hard-pack ice cream. Locust Bean Gum – which as befits its slightly biblical name is derived from the pods of the carob tree which grows in the warmer parts of the coastal Mediterranean region – has been the victim of its own success, with demand skyrocketing and prices going up +800% over the last five years. There’s also the added complication that the tree takes ten years to reach productive maturity, and we haven’t even started to look at the potential impacts of climate change on the crop. Sherex Supreme, say Kerry, delivers the creamy mouthfeel, good aeration, desired viscosity, and controlled meltdown that punters want from their ice cream, while saving costs to the tune of up to 50%.

Comment: As nature struggles to deliver the ingredients we need for our stuff, we are heading for a golden age, if that’s the word, of scientific innovation.

To Nigeria, where Nestlé Nigeria Plc have made a strong recovery from the depredations of COVID-19, growing revenue +29% to N222.4bn (that’s around half a billion US), and operating profit +27% to N46.1bn for the six months through June. A combination of higher prices and a rise in volumes, they say, has helped cushion the impact of higher direct and indirect costs and expenses. And according to certain analysts, its inter-company loans (which give the Swiss parent Nestlé SA more control in the doings of its subsidiaries) are a marvel to behold. Back here in the Beloved (and embattled) Country, Distell has cleaned up at the Michelangelo International Wine and Spirits Awards scoring the prize for best overall achievement, the Bidvest Trophy for Top South African Producer for Nederburg, which also waltzed off with the Jetcraft Cabernet Sauvignon Trophy for its Private Bin R163 Cabernet Sauvignon 2009. The Safair Whisky Trophy was awarded to Distell’s Three Ships Whisky Premium Select 5-Year-Old.

Comment: Cheers. And don’t forget our South African Liquor Report.

How does load shedding impact the retail sector? The ways are multifarious – diesel, strapped punters as overall economic activity declines, rotting perishables, more online shopping, a decline in consumer confidence, you name it. And also, trolleys abandoned, and sales lost as point-of-sale devices run out of battery life. As the periods between bouts of load shedding declines, retailers – particularly independent stores – are finding it more difficult to charge these units, which together with the ongoing theft of batteries from cell phone towers leaves them unable to contact the banks and conclude the necessary transactions. While newer generation card payment terminals are equipped with Wi-Fi connectivity and “bring your own internet” software, enabling retailers to keep trading through a blackout, it’s going to take a long time to replace all the older units – again to the particular detriment of the independents.

Comment: Every sector has its horror stories. Ours is a story of livelihoods affected and empty baskets.