Showing posts with label Woolworths. Show all posts
Showing posts with label Woolworths. Show all posts

Thursday, August 26, 2010

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.


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Beechies Is Now Too Good Not To Share
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Monday, October 06, 2008

Name-calling


For the trade unions, ‘Walmartization’ bears as its identification tag union busting and social dumping. It is evidence of Darwinian theory hard at work. Directed at Woolworths (and, until recently, Pick n Pay), it is also SACCAWU’s battle-cry of the moment.

‘Walmartization’ is a bulky, but ambiguous label. One can add countless charges to the load. For me, the most outstanding flip side to the coin may be encapsulated in a single phrase: getting the best deal. By dint of its market size and power, Pick n Pay is able to drive supplier efficiency and pass the gains to consumers in the form of lower prices. And, in consumer terms, price carries great weight. Unlike the products of employee welfare or social responsibility initiatives, price is visible, tangible and verifiable.

What’s more, the cheapest goods – food and basic everyday necessities – are of the greatest value to the least affluent. Earlier this year, Pick n Pay introduced a subsidy on such items to help consumers counter the side-effects of food inflation, interest rate increases and rising debt. Whether that decision was inspired by altruistic sentiment or capitalist instinct is really beside the point.

Woolworths, which makes no bones about its higher LSM target market, has demonstrated that it is not immovable on price either. Indeed, following the publication of the retailer’s performance for the six months to June, CEO Simon Susman acknowledged that the retailers’ battle for survival had been reduced to a fight on price. And it is the retailer’s size that enabled it to adjust entry level prices accordingly.

It’s heartening to observe the industry players strategise, adapt and problem-solve. It’s a sign that competition is alive and well. And, when one considers that the typical behaviour of a predatory corporation is to cut prices in order to stamp out the competition - only to raise them again later - our ‘home-grown Wal-Marts’ seem to have more in common with relatives higher up the family tree.