Surprise winner of a price survey by data-journalism outfit The Outlier was Food Lover’s Market, coming in at R393 and some change across a nine-item basket of basics, from a loaf of Albany sliced white, to a nine-pack of toilet paper. Runner up was an even more surprising Woolworths, followed by Checkers, Shoprite, Pick n Pay and SPAR, R48 off the leader. Massmart has taken issue with the survey, arguing that same basket costs just R359 at its stores. Whatever the actual numbers, surveys like this are gaining in relevance with consumers as the dear old South African economy contracts, driven substantially by our power crisis. And speaking of which: Food Lover’s Market provides a snapshot of what it costs to keep the lights on these days. It expects, they say, that load shedding will cost R200m in diesel alone for the next year, before factoring in such expenses as more generators, the maintenance of generators and fridges, and food waste.

Comment: It’s the old “curse the darkness/light a candle” dilemma, with South Africa’s businesses having no choice but the latter these days.

Big Up to our friends over at voluntary trading association Unitrade Management Services (UMS), who were recognised last month at the Independent Grocers Alliance (IGA) Rally in Las Vegas for the significant role they’ve played in the growth of independent wholesalers and retailers in South Africa. Receiving the Entrepreneurial Growth & Development Award on behalf of the business, CEO Jad Pereira said, “It is an honour to receive this award, which is testament to the resilience and spirit of the independents in South Africa. We will continue to work in partnership with our members and suppliers to ensure this important sector of the South African economy remains strong, growing and sustainable.” Founded by Pereira with just 2 members in 1999, UMS now has over 450 members across South Africa, Botswana and Namibia and is committed to building independent family entrepreneurs in South Africa and neighbouring countries.

Comment: Global recognition for a bulwark sector of South Africa’s burgeoning independent economy.

Buoyed by its outstanding results (as reported in these pages last week), Shoprite is planning on opening no fewer than 425 new stores this year, even as it forks out over R1.5bn to restore stores damaged in the July 2021 unrest. This will drive CAPEX up to over R6bn, leaving shareholders hanging for the sort of dividends to which they have become accustomed. Moving on, strong>Yebo Fresh is inviting 3,000 South African entrepreneurs to join its new Yebo Fresh Business Lab, a free skills development and business expansion programme aimed at creating jobs and facilitating better business among township entrepreneurs. Next, Massmart is donating R1m of its hard-earned to the Female Academic Leaders Fellowship (FALF) for research into gender-based violence and alcohol abuse as part of their International Women's Day commitment. “The partnership between FALF and Massmart is a good example of a multisectoral collaboration to develop women while also helping them to find evidence-based solutions to local challenges,” says Wits Chancellor Dr Judy Dlamini. And this just in: someone – Clicks actually – is finally offering a self-administered rapid COVID antigen test over the counter, for the low price of R59.95.

Comment: Four stories, each in its own way illustrating good corporate citizenship in a country that sorely needs it.

SPAR Switzerland has taken a further step on the road to full automation with the launch of its first 24/7 SPAR Express forecourt store operating without onsite personnel. Situated in Zurich’s Sihlqui bus terminal, the 50m² store offers 1,000 products including bread and bakery products, fruit and vegetables, dairy products, meat, drinks, basic food items, hygiene articles, and car accessories, as well as hot beverages and snacks. Further stores are planned in the drive, if you’ll excuse us, to use “the latest state-of-the-art technology to bring a frictionless retail offering to shoppers 24/7.” In the UK, Tesco has put the wind up suppliers whom it will now be charging a “fulfilment fee” to help it “shoulder the costs” of serving more customers shopping online. The fee could be as much as 12p per item on branded goods and 5p for private label products, irrespective of their price point.

Comment: Two examples from the new frontiers of retail, where margins are tight, and costs must apparently be cut from the payroll or passed on to trading partners.

A few sets of results to kick off the suppliers this week. First up, RCL FOODS with revenue up +17.6% to R20.2bn YOY for the six months to December, with EBITDA down -8.9% to R1,177.7m as volumes declined across most operations due to a combination of higher pricing and production challenges. Strong performers in the stable were Simply Chicken, which grew market share, and Vector Logistics. “We have delivered a resilient set of results in an exceptionally tough market,” says CEO Paul Cruikshank. Next, Sea Harvest, where revenue grew over +25% to R5.88bn for the year through December, while operating profit declined -31.7% to R472m, on the back of astronomical increases in the costs of fuel and packaging. “The financial year under review was one of the most challenging in Sea Harvest’s history,” says CEO Felix Ratheb. Finally, to packaging outfit Mpact, where revenue grew +7.1% to R12.4bn for the year through December, with earning per share up +26.7% on the back of higher selling prices. Mpact is being floated as a possible acquisition target for local-newspaper behemoth Caxton.

Comment: Tough times, resilient businesses.

First up, cheers to happy couple Distell and Heineken, given the nod last week by the Competition Tribunal for the R47bn acquisition of the former by the latter. “We are very excited to bring together three strong businesses to create a regional beverage champion, with a unique multi-category offer to better serve consumers, customers and create shared societal value across southern Africa,” says Heineken CEO Dolf van den Brink. And as one major South African business exits the JSE, another one revives its plan for listing, namely and viz. the Premier Group, soon to offer its shares on a R6.9bn equity valuation. Next, Castle Lager will soon turn by-products of its beer brewing process into “Bread-of-the-Nation”, a high-fibre, high-protein, sustainably produced loaf. Finally, the iconic Matterhorn is to disappear from Toblerone packaging after a good run of almost a century, as some production moves to Slovakia to meet growing global demand. Swiss national symbols are not allowed to be used to promote milk-based products that are not made exclusively in Switzerland.

Comment: Beer, bread, chocolate, yup, all bases covered.

A recap of the travails, if that’s the word, of the dear old South African economy, much battered in recent months. GDP contracted -1.3% for Q4 last year, worse than the direst predictions of the economists and largely a function of load shedding, with finance and trade the highest contributors to the decline. Next, CPI was up +13.4% for food and non-alcoholic beverages in Jan 2023, even as prices show signs of easing globally. Thanks again, Eskom. And a similarly sad state of affairs in retail trade sales, down -0.6% for December. November growth, however, was adjusted upward to +0.8%, indicating that promotional efforts from retailers might have cannibalised December sales somewhat. Consumer confidence was understandably down for Q4 last year, at -8, with the prime lending rate steady at 10.75% and unemployment stubborn at 42.6%.

Comment: A bleak picture, expertly painted by our analysts in our excellent summary found here.