With 20.9% growth in 2005, the proof is in the pudding that Woolworths Food Stores are a fantastic example of successful "lifestyle" food retailing. It seems that the pudding is going to become even tastier with the group committing itself to opening a further 100 stores in Gauteng alone! This food store format has exceeded all expectation, which leaves me pondering about "hard discounting" - also a feature in this week's newsletter.
In emerging economies other than ours, "hard discounting" has become the fastest growing sector - read this from Planet Retail:CLICK HERE.
Despite what analysts have to say however, I personally believe that this is the format that will dominate the African retail landscape in the future. If this is to be though, I sincerely hope that it's a South African retailer that is able to dominate before the Europeans begin to look to us for growth.
Craig Ballantyne
craig@fastmoving.co.za
Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za
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NEWSBYTES
Retailers "loving" Valentines Day
Retailers are laughing all the way to the bank after Valentines day on the 14th of February. It has been reported that some retailers were already cashing in on Valentines day sales in early November.
Full article: CLICK HERE.
Woolies to open 100 new food stores in Gauteng
Woolworths Holdings, in an attempt to balance out the greater store density in Cape Town and Durban, will be opening 100 more of their food stores in the "underpenetrated" Gauteng area over the next four years.
Full article: CLICK HERE.
Premier Foods sponsor music tour to South Africa
Premier Foods, in association with Metro FM, Good Hope FM, SABC 1 and Big Concerts are collaborating to bring South Africa the biggest ever line-up of international Hip Hop and R 'n B superstars! The festival is being held in celebration of Premier Foods becoming the biggest 100% Black-owned company in South Africa.
Full article: CLICK HERE.
Illovo gets surprise offer
Illovo Sugar rocked the market on Tuesday with its surprise announcement that it had received an offer to purchase most of the company's shares at a small premium to the share price. According to an analyst, Illovo would be an attractive target for EU players.
Full article: CLICK HERE.
Tax relief to benefit low end retailers
Tax payers are not the only one's celebrating after Trevor Manual's 2006 budget speech on Monday. Low-end retailers will also benefit from a continuation in retail growth, with an additional R13.5 million in the hands of bottom to middle income earners.
Full article: CLICK HERE.
Hard discounting model not to stay, say SA industry players
It seems as though South African retailers are taking a page out of international retailers' books. Shoprite have implemented elements of the European "hard discounting" model in its bottom-end Usave markets. South African retail industry players however, feel that the experiment will not last.
Full article: CLICK HERE.
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SPECIAL FEATURE
Welcome to the Rebate Season!
Gary Carp of Glendinning Management Consultants sneaks a rather cheeky peak into the phenomenon he refers to as the "rebate bunfight". This annual fistfight sees retailers mauling suppliers for cash in a less-than-elegant fashion. Read at your own risk.
Full article: CLICK HERE.
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GLOBAL NEWS
Internationally, Pick 'n Pay is tops!
Pick 'n Pay and other South African retailers can hold their heads high internationally. According to a recent retailing survey, Pick 'n Pay was placed among the Top 50 fastest-growing retail companies worldwide.
Full article: CLICK HERE.
Sainsbury to add in-store doctors
Sainsbury's has confirmed a long-term plan to add doctors' surgeries to its supermarkets across the country. The retailer said CEO Justin King had met Health Minister Caroline Flint to discuss the proposal and that further meetings were planned with the Department of Health.
Full article: CLICK HERE.
