Convenience Retailing

This week's FMCG Files is an action packed edition, with many FMCG companies reporting their (very positive) interim results, an in-depth discussion with David Kneale - the newly appointed CEO of New Clicks Holdings, and some very interesting insights into Convenience retailing in South Africa by AC Nielsen.

Convenience Retailing is a hot topic at the moment, and I was fortunate enough to attend The RMF International Convenience Conference last week. With a host of international speakers, the conference was enlightening and I have no doubt that those who attended gained a great deal. Disappointing however was the poor turnout from franchisees - input from the Americans (who by the way run 140 655 convenience retail outlets) would surely provide valuable insight and help to boost our national standard of convenience retailing.

Look out for a report back on the conference in next week’s edition.

Craig Ballantyne
craig@fastmoving.co.za

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

NEWSBYTES

Excellent results for Shoprite
The Shoprite group has reported excellent results in the six months to December 2005, growing turnover by 13,7% to R16,621bn when the extra week in the corresponding period in 2004 is discounted. Shoprite CEO Whitey Basson said that the group's results can be attributed to a high consumer confidence in South Africa.
Full article: CLICK HERE.

Massmart shows record results
South African retail and wholesale group Massmart showed record first-half sales, profits, cash flow and profitability, but warned its full year earnings growth is unlikely to repeat this performance.
Full article: CLICK HERE.

Tongaat Hulett shine
Sugar and aluminium group Tongaat-Hulett on Monday reported a 126% increase in headline earnings from R206m to R466m for the year to the end of December. This translated into headline earnings per share of 452.4 cents, compared to 202.5 cents the previous year.
Full article: CLICK HERE.

Expect positive results, says Rainbow
Ahead of their full year results due in May 2006, Rainbow Chickens said on Wednesday that they expect headline earnings and headline earnings per share for the year to be 80%-100% higher than the previous year. Earnings and earnings per share are expected to be 65% - 85% higher than the previous year.

Convenience stores are evolving traditional shopping approaches
In today's time pressured world, convenience becomes increasingly important to South African consumers. Shopper habits are constantly evolving, along with developments in retail offerings. Over the past ten years in excess of 1,400 forecourts have opened in the country and over 280 franchise convenience stores (otherwise known as branded superettes) have sprung up, destined to change traditional approaches to shopping.
Full article: CLICK HERE.

New study explodes myths about SA's new black middle class
According to the landmark "Black Diamond" marketing survey conducted by the UCT Unilever Institute of Strategic Marketing and Research Surveys, the benefits of BEE only favour a privileged few. This is just one of the fascinating facts on SA's burgeoning black middle class - formerly referred to as the "emerging" market.
Full article: CLICK HERE.

SPECIAL FEATURE

Clicks to boost pharmacy, support Government
2006 looks set to be a fruitful year for New Clicks Holdings following the appointment of David Kneale, new CEO. Despite the group having come under scrutiny in previous months, Kneale is determined to turn around the group's performance by making Clicks the authority in Health and Beauty in South Africa.
Full article: CLICK HERE.

GLOBAL NEWS

Wal-Mart positive on FY performance
Wal-Mart have reported that net sales for the fiscal year ended January 31, 2006, were USD312.4 billion, an increase of 9.5% over fiscal 2005. Net income for fiscal 2006 increased 9.4% to a record USD11.2 billion, up from USD10.3 billion in fiscal 2005.
Full article: CLICK HERE.

Convenience store numbers increase in USA
Recently released data from the National Association of Convenience Stores in the USA shows that that at the end of last year the number of convenience stores in the country stood at 140,655, an 18% increase over 2004.