Thursday, August 26, 2010

Shrinkage management and stock theft

Since the onset of the global recession shrinkage has been on the rise. That’s not to say that it’s a new problem but that it’s a persistent one which has yet to be put a satisfactory end. However, as most companies are still struggling with recovery, it is difficult for them to assign a significant part of their annual budget to security and loss prevention. What is also worrying are the results of a recent survey, conducted by the Centre of Retail Research (CRR), which showed that the major reasons for the increase in retail shrinkage was shoplifting followed closely by employee theft.

So when money is short and good people are hard to come by what remains? The machines. Recent research conducted by online giant IBM showed that mobile devices have become critical retail platforms and that emerging technology, including smart applications accessed via television, could be closer than expected. And, on the ground things are also changing.

By incorporating new technologies with their existing systems, retailers could effectively kill two birds with one stone. The introduction of automated systems would dissolve the need for extra staff and at the same provide a secure alternative for storage and dispensing.

Take Vinallti, a local retail solution provider, who have just launched their new iBlue Vault. Their automated stock replenishment system, described as “sophisticated and sexy”, automates a large retail category and provides one touch dispensing whilst also eliminating pilferage and stock handling. Although the system is currently exclusive to the tobacco industry, Vinallti hope to expand into other similar category products.

In a time where cutting down on expenses, and eliminating shrinkage is central to every company’s business strategy, the solution may lie in embracing the digital and automated sectors.


BRAND NEW

Introducing the new Sea Harvest Product: Dressed Sole
Dressed for the occasion.... a fresh exciting launch!
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New Johnson's feel good feel fresh deodorants
Fresh fragrances, fresh innovation for naturally beautiful skin.
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Nivea Sun
New Look for SA's No.1 SUN CARE BRAND!
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Chicken Braaiwors
Chakalaka flavoured and supreme braai available in-store now.
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Healthy joints make for happy dogs
Fed Daily, our NEW JointCare Sticks with tasty chicken and lamb, will assist in rejuvenating your dog.
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Chewing life to the fullest with Rockstars, Gangstas and Hip hop Stars!
Lonehill Estate has been rocking the radio waves with their new track ‘Gangstar’ on major radio stations nationally. Stimorol has long been associated with supporting local artists who depict the brand’s ‘chew life’ philosophy, and so the music video for ‘Gangstar’ is the latest installment of this relationship between South Africa’s number one chewing gum brand and South Africa’s top performing artists.
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With Appletiser a can could get you to Cannes
From August to October 2010, Appletiser is making it possible for consumers to contribute towards a good cause and at the same time stand in line to win an incredible trip to Cannes!
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The Feliny WINNERS have been announced!
As you will know, we ran an online adventure for the launch of our new Lucky Pet Supreme Kibbles. This followed a storyline of a heist of Lucky Pet Supreme Kibbles by 3 notorious cat burgulars – Macavity being the ring leader.
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Cadbury Dairy Milk takes to the skies with epic new television commercial
Cadbury South Africa is taking their flagship Dairy Milk brand to bold new heights with the launch of their first locally produced blockbuster from a Glass and a Half Full Productions.
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Sasko Flour salutes the early bakers with launch of new radio show
Sasko Flour has launched a 15 minute radio show on Umhlobo Wenene called INKQUBO YASEKSENI MANYANI (The Really Early in the Morning Show) that is helping to fill the early morning baking hours with goodness for its consumers.
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Squirrel Goes Nuts for Halls on YFM!
On Thursday 5 August, Halls arranged a very intriguing marketing stunt with local radio station YFM by placing a giant nut surrounded by ‘police’ tape on William Nicol Drive Sandton.
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Get set for Much, Much More talent – ‘Oviaas’!
Cadbury Lunch Bar, SA’s best loved chocolate brand is proud to announce its official sponsorship of SABC 2’s hit reality talent show, SA’s Got Talent. Set to hit the small screen in September, Season 2 promises to entertain viewers with a bigger and better show…and much, much more talent!
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Product innovation for category growth




Maintaining growth in the older, more established FMCG categories is a difficult task for any brand manager and introducing new consumers to the category is as important as ensuring they choose your brand when buying. In a mature category, product innovation should form a corner stone of any successful growth strategy and if implemented correctly will help to grow the category as well as the brand. Product development is expensive and requires significant financial and human capital investment.

Retailers are often reluctant to invest shelf space to products in a category that has low or in some instances negative growth so it’s important that they are aware of the product’s appeal, as well as the intention to develop the category. Retail buyers ultimately play the role of St. Peter at the “pearly gates” for any brand, so it is important to consider them as partners and include them as early as possible in the development cycle.

The Laager brand has aggressively pursued a strategy to develop the tea category and have used product development and the positioning of Rooibos tea as a healthy hot beverage alternative to access and develop new markets.

Have a look at some of the fantastic innovations.

· NEW! Laager Rooibos Cappuccinno
· NEW! Laager Shake4Kidz

Innovation within FMCG categories is crucial in driving category growth

BRAND NEW PRODUCTS

NEW! Laager Rooibos Cappuccinno
All the natural goodness of rooibos in an indulgent Laager Rooibos Cappuccino
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NEW! Laager Shake4Kidz
Great Tasting Chocolate & Strawberry flavoured Rooibos shake for kids!
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Add a twist of flavour to your food with Lecol Flavoured Lemon Juice
The Lecol taste and convenience you have come to trust and rely on will be available from August 2010 in three delicious new flavours. Look out for Lecol Lemon with a twist of garlic and herb flavour, butter flavour and peri-peri flavour at a supermarket or a grocery store near you.
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The Clothing Bank


Social upliftment is a term often used by politicians and is seldom supported by any realistic measure or commitment. The concept is good and most people I speak to feel a responsibility towards it some way, however, when the question, “what are you doing to uplift the lives or others?” is asked, the answers tend be somewhat esoteric. Rather than state tangible achievements, the kind that people who actually need the uplifting would get excited about, the focus leans towards feel good elements rather than helping people to put food on tables.

Yesterday I attended the launch of The Clothing Bank, a project undertaken by two very impassioned women who are enabling disadvantaged women to help themselves. It is no easy task, a great deal energy, planning and commitment is required to pull a project like this together and it is obvious that all this and much more has been expended by the team to bring The Clothing Bank to fruition.

The project undertakes to train and educate women to run their own micro retailing operations. The real beauty is that the stock for these newly trained vendors is made up of redundant and returned items that are donated to the bank by retailers. The items are repaired by The Clothing Bank and are then made available to the traders to buy at reduced prices, thus making the project sustainable. Woolworths have taken the lead and committed R5m worth of stock over a 12 month period.

At present The Clothing Bank is making a real difference to the lives of over 70 women and their families. It’s a small project for now but there is undoubtedly scope to uplift the lives of many.


BRAND NEW

VOILA! They’re here!
Two new Premium Rusks from Bokomo. The gourmet treat for connoisseurs. Get these deliciously different rusks now and savour the flavour of a whole new taste sensation. Bon appetit!
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Introducing new Heinz Pre-Bake Pies
Now Heinz is offering you 3 premium quality pre-baked pies - Chicken & Mushroom, Pepper Steak, Steak & Kidney
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Introducing the first full revitalising grooming range
Revitalising is a major need and is already proven successful in the market with Revitalising Q10 Moisturiser, the top performing sku in the NIVEA FOR MEN portfolio.
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Ceres Fruit Juice in Tetra Pak - Smart for your health and for the planet
Smart consumers care about a product’s impact on the environment – that’s why Ceres Fruit Juice packed in Tetra Pak is the best possible packaging when choosing fruit juice.
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Beechies Is Now Too Good Not To Share
Beechies is back with a bang! Natela Importers is celebrating the re-launch of the Beechies brand into the South African market by to introducing eight new, long-lasting flavours. These include Mixed Berry Splash, Luscious Strawberry, Menthol Eucalyptus Rush, Peachy Apricot, Magic Musk, Peppermint Blast, Sweet Cherry Kiss and Spearmint Shock.
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Point of sale technology

Worldwide, technology has emerged as one of the conspicuous winners in the economic crisis. Against the backdrop of tight consumer spend and vigorous competition, retailers have been compelled to revise their IT budgets and to employ staff more efficiently without jeopardising customer satisfaction.

In a groundbreaking move, Spar (UK) is set to roll out contactless payment technology across its 2 600-strong national store network. Based on the combination of an embedded RFID chip and the normal EMV chip on payment cards, the technology enables shoppers to make purchases of £15 or less by simply waving their card over a reader at the POS. The secure transaction uses the tried and trusted Chip and PIN technology to automatically add the purchase to the customer's credit card bill or debit it from their current account. The roll-out follows a four-store trial in London.

Developed in conjunction with IT partner BCP (Business Computer Projects), the contactless system integrates with the existing till system. Its incorporation into Spar’s POS store solution has been claimed as a first c-store sector feat. Citing the benefits of the contactless technology – faster transaction times, lower transaction fees, reduced training requirement, and a robust audit trail – Spar believes it will also satisfy the customer’s always high priority need for swift supermarket passage.

But Spar is not the only one on the look-out for a good thing. Having finalised its partnership with Barclaycard, UK high-street food retailer the Co-operative Food Stores intends a national roll-out of the revolutionary payment method in time for the 2012 Olympics. The roll-out will follow a pilot across 100 Co-operative food stores, to be initiated next year.

Contactless payment made landfall in the UK in 2007. There are now over nine million contactless enabled cards in circulation.


OBIKWA SA’s Best Value Shiraz at 2010 Global Trader Shiraz Challenge
OBIKWA Shiraz 2009 has been hailed South Africa’s Best Value Shiraz at Wine Magazine’s 2010 Global Trader Shiraz Challenge. In addition to clinching the Best Value award in terms of best quality versus price, the OBIKWA Shiraz was awarded a 3-star rating by the judges, outshining countless higher priced wines entered in the competition.
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Swartland Winery brings people together in a great Spring competition
In an exclusive competition with all Pick ‘n Pay stores, Swartland Winery brings people together to enjoy a Braai for four people. Not only do their wines bring people together but the thought of our favourite outdoor pastime brings spring and the promise of long, languid summer days a little closer.
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Café Culture introduces new convenient pack size
Café Culture, the deliciously sociable Pinotage from KWV is set to release an innovative packaging of this ever popular wine. This controversial up-beat wine was launched with the 2007 vintage and has become an icon of socialites alike.
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Sweet news for Nederburg from France
Nederburg has emerged as the top performer in this year’s Muscats du Monde held in Frontignan-la-Peyrade in the Languedoc-Roussillon region of France and involving 55 international judges.
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Simonsig adds soul with Red wine & Blues(R&B) at Cuvée, Friday 30th July
Feed your soul with red wines and the blues – a night to remember with Gerald Clark and Schalk Joubert.
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International gold for Monis Muscadel
Monis, the oldest producer of fortified wines in the country, has been awarded a gold medal for its 2004 Muscadel at the Muscats du Monde held recently in France. This follows the recent platinum award earned at South Africa’s 2010 Muscadel Association Awards achieving gold for both the product itself, as well as its unique packaging.
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Friday, August 20, 2010

A Speculative look at a possible international investment in a SA Retailer

There is much speculation that various international retailers are considering possible investment in South African based retailers. South Africa as a market is too small to warrant significant investment by an international retailer. However, Africa presents the second largest growth opportunity behind Asia and when investors ask CEO’s where growth is going to come from they only have two places to point at. It’s most likely that an international will target an established African retailer as a platform to launch its operation.

Shoprite have been very successful in Africa and they have certainly positioned themselves as the retailer most likely to capitalize on Africa’s inevitable progression toward formal retail. It may be more accurate to say that they have been driving that progression, either way Shoprite now has an experienced team in Africa and consensus is that growth of their African operations will accelerate quickly toward “continental domination”.

Pick n Pay appears to have devised a plan to develop its African footprint. The response to the question on the subject is usually met with one of the following phases, “surprise move”, “at last” or “well timed” and in some cases all three are used in the opening sentence. The fact is, timing will play little part Pick n Pay’s strategy and there management style indicates that African projects will receive the time, attention and investment they require to succeed. There is plenty of ground to be made up so one can only assume that the plan will be an aggressive one.

Massmart has been active in Africa for some time now, all be it at fluctuating degrees of intensity. This team has successfully attracted international investment in the past and by all accounts investors have been satisfied with the returns. There is a track record and they have built a business based on an “American large format model” which is an added attraction for the worlds largest retailer.

Who will be at the top of the shopping list?

Granadilla Curd from Staffords – delicious and versatile
Staffords, leading the way with fine-food brands for the best part of a century, is the nation’s favourite for exclusive brands that families and their friends know they can trust. Now Staffords has added delicious Granadilla Curd to its range, and it’s versatile as well as bursting with tangy flavour.
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Lancewood’s latest launch
Lancewood is already recognised and loved for their supreme range of award-winning Cottage Cheese, Cream Cheese, Crème Fraiche and other delicious products. Yet, Lancewood continues to surprise and impress with the launch of their Hard Cheese range: now Cheddar, Gouda, Mozzarella and Braai Cheese are available from this leading brand.
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Automating the Check Out


Worldwide, technology has emerged as one of the conspicuous winners in the economic crisis. Against the backdrop of tight consumer spend and vigorous competition, retailers have been compelled to revise their IT budgets and to employ staff more efficiently without jeopardising customer satisfaction.

In a groundbreaking move, Spar (UK) is set to roll out contactless payment technology across its 2 600-strong national store network. Based on the combination of an embedded RFID chip and the normal EMV chip on payment cards, the technology enables shoppers to make purchases of £15 or less by simply waving their card over a reader at the POS. The secure transaction uses the tried and trusted Chip and PIN technology to automatically add the purchase to the customer's credit card bill or debit it from their current account. The roll-out follows a four-store trial in London.

Developed in conjunction with IT partner BCP (Business Computer Projects), the contactless system integrates with the existing till system. Its incorporation into Spar’s POS store solution has been claimed as a first c-store sector feat. Citing the benefits of the contactless technology – faster transaction times, lower transaction fees, reduced training requirement, and a robust audit trail – Spar believes it will also satisfy the customer’s always high priority need for swift supermarket passage.

But Spar is not the only one on the look-out for a good thing. Having finalised its partnership with Barclaycard, UK high-street food retailer the Co-operative Food Stores intends a national roll-out of the revolutionary payment method in time for the 2012 Olympics. The roll-out will follow a pilot across 100 Co-operative food stores, to be initiated next year.

Contactless payment made landfall in the UK in 2007. There are now over nine million contactless enabled cards in circulation.

It’s competition time!
Wilde Fruit Juice is running a competition in the July 2010 edition of the SA Garden Magazine, where twelve lucky readers stand the chance to win twelve cartons of 1 litre Wilde Fruit Juice.
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Alpen Muesli
The classic and unique Alpen blend of crispy wholegrain wheat flakes and rolled oats, juicy raisins and roasted almonds and hazelnuts, high in fibre, low in saturated fat. Arguably the finest muesli money can buy.
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