Brands Under Fire

Recently there has been much said about South African retailers lagging behind their international counterparts in terms of the strength of their retailer branded products. According to a report from Planet Retail (see below), it seems that the growth trend of retailer brands is set to continue. This trend must be having a profound impact on brands - for example, 45% of all goods sold by Tesco are their own, and a staggering 37% of $310.5 billion in sales by Wal-Mart were of their own branded products.

The question is, how will the owners of strong brands counteract this trend and begin to win back market share? One thing is for sure: South African brand owners need to have an aggressive strategy to defend their market share from retailer brands. I strongly recommend that brand owners and retailers read the full report from Planet Retail. To do so contact Tim Cooke on tim.cooke@planetretail.net

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Out of stock, out of mind, out of business
Let's face it: out-of-stock is the bane of every shopper and retailer's existence. It is detrimental to brand and store loyalty, as well as the store's cash opportunities. Frankly, out-of-stock in one store equals a sale for another - "if it is not on the shelf it cannot be bought". Chris Olivier, CEO of The Smollan Group discusses the damaging implications of stock shortages.
Full article: CLICK HERE.

Retailer brands will continue to grow
In a new report, Planet Retail have forecast that private labels are to continue to show impressive growth across both food and non-food categories. Although their penetration is likely to slow in more mature markets such as the US and Europe, their presence is expected to increase in developing regions, driven by globalisation of the world's leading retailers.
Full article: CLICK HERE.

Woolies and Wellco strike a healthy deal
Woolworths and Wellco Health have joined forces in an exclusive strategic partnership to produce and customise a range of adult and children's health supplements under the Woolworths brand. There is a huge demand for health products driven by what has been termed a "global wellness revolution." Products are anticipated to be launched later this year.

Massmart to keep growing building materials chains
Massmart Holdings have announced plans to continue investing heavily in its building materials division. This sector is anticipated to be one of its greatest new sales generators.
Full article: CLICK HERE.

SABMiller go large
SABMiller, one of the world's leading brewers, have announced a brand plan which aims to invest US$50m in a new global brand campaign for its international premium beer Peroni Nastro Azzurro over the next 18 months. The launches will commence in the UK, and then move to US, South Africa and Romania.
Full article: CLICK HERE.

GLOBAL NEWS

Strong first half for Woolies Australia
Australian retailer Woolworths has reported a strong rise in first half earnings, with cost cuttings and recent acquisitions helping the retailer deliver a 22% gain to AUD543.1 million (USD413.8 million).
Full article: CLICK HERE.

Wal-Mart to implement sales strategy
Over the past four decades, Wal-Mart's unwavering growth has been undeniable - with 3 900 stores, they almost saturate the US market. After this continuous and steady growth, Wal-Mart have admitted that it has become hard to grow and say that it is now the company's sales strategy, not new retail outlets, that will determine Wal-Mart's future.
Full article: CLICK HERE.