What Christmas Holds For Retailers in 2010

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For the past two years, South African retailers have not had the merriest of Christmases as both years saw declining sales volumes. These figures corresponded directly with fourth quarter sales data. Following this, sales from the fourth quarter of last year were compared to sales over same period of this year, and it correlates that an increase of up to 5% in retail sales volume can be expected for the coming month. This, from The Bureau for Economic Research (BER) and Ernst & Young Festive Season Retail trends survey.

Furthermore, consumers won’t have to break the bank to keep up with the Joneses as the majority of retailers surveyed claiming that retail price increases will be lower than last year.

As with all things, there are two sides and in this case it’s the retailers who are at risk. Turnover is still under pressure and profit margins look to remain low. Despite the growth in the retail sector, recovery is still a way off.


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Perfect Paste Rhodes Food Group now offers tomato paste in convenient easy-to-use, sealed plastic cups. The single 115gram portions are made from the freshest tomatoes and contain no preservatives. Rhodes tomato paste adds zing to South African favourites like tomato-bredie, stews, pasta dishes and is ideal on pizza bases. read more
Dentyl pH is an alcohol-free mouthwash that is the same pH as saliva. It is gentle on the mouth, and clinically proven to combat bad breath for all day fresh breath confidence. Dentyl ph is now available in 3 flavours- new Ultra Cleanse Fresh Mint with Bicarbonate of Soda, Smooth Mint and Refreshing Clove from Dis-Chem, Clicks, Checkers Medi-rite, Pick ‘n Pay Hypermarkets, Wellness Warehouse, leading pharmacies and dentists. read more
Hello Kitty Raspberry flavoured ice cream with a blueberry sauce. read more

Consumers move to multichannel shopping

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There is an ever increasing number of consumers who browse through multiple retail channels to research and learn about products before making a purchase. Picking up on this development, retailers have been prompted to perk up multichannel practices including opening up online stores and enhancing internet retailing capabilities.

“Multichannel retailing refers to the concept of selling goods through multiple channels rather than solely through one channel, such as traditional brick-and-mortar stores. The additional channels that can be used to reach out to consumers include the internet, mobile devices and catalogs, each of which present unique benefits and drawbacks. To succeed in multichannel retailing, merchants must optimally utilize the benefits of a variety of channels.”

It is crucial that retailers combine multichannel efforts with existing ones to maximize the benefits. Although the number of consumers engaging in multichannel retailing is constantly on the rise, many customers still prefer the touch and feel of a new product before purchasing. A survey, conducted by commerce solution provider ATG, showed that about 40% of respondents who read catalogs never made purchases through them.

Selling through online channels can be marginally more profitable than selling through traditional stores but, online retailing also provides other advantages, “retailers can avoid the risk of stocking inventory, since merchandise can be shipped directly from the supplier to the customer.”

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