The strong get stronger

The big South African brand owners have been on strong acquisition and investment campaigns over the past two years, and this is a good indication that these businesses believe the strong retail sales growth has long term sustainability. While our first article mentions a slowdown is retail sales growth, if you read the full article you will see that in most opinions a continued growth period can be expected. This period of sustained growth is sure to change the landscape of the South African retail industry. Will the strong get stronger?

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

Retail sales slow in January
Statistics SA said on Wednesday that real retail sales growth in January had settled to 5.6 percent year on year, confirming the trend indicated by Tuesday's AC Nielsen data. December sales, stripping out inflation, had increased by a revised 8.5 percent year on year.
Read more.

Tiger Brands' two sweet acquisitions
Last week saw Tiger Brands in action when they acquired both Cadbury Schweppes's Bromor Foods, as well as Nestlé's South African sugar unit. Bromor Foods own brands such as Oros, Energade, Hall's, Monis and Roses. It was also reported that Tiger is reviewing its fishing interests, which have been underperforming, but is investing in food, pharmaceuticals and homecare, where it expects substantial growth.

Premier Foods to consider a listing after success of turnaround strategy
Premier Foods will reportedly consider a listing once its turnaround strategy has yielded sustainable results. Premier's turnaround strategy has focused on township markets, where it has seen an increase in sales as it has made products more available.
Read more.

Nestlé's R300 mil upgrade plans
Nestlé South Africa is set to spend R300 million on upgrading and expanding its facilities to improve its efficiency and profitability. Nestlé will also establish a presence in Angola through importing, distributing and using third-party facilities for manufacturing.
Read more.

Game Worcester open to huge crowds
The town of Worcester in the Western Cape came alive on March 23 when the 66th Game Store opened its doors, bringing the unique pink Game flavour to the town.
Read more.

GLOBAL NEWS

Sainsbury back at number two
Sainsbury has regained its position as the UK's second-largest supermarket chain from Wal-Mart Stores' Asda chain, with Tesco in at number one.

Asda launch pilot Essentials store
Friday 31st March has witnessed the opening of the first pilot Asda Essentials store, the first take on a discount concept opened by the big four grocers in the UK. The outlet - described as a convenient store by Asda is located in the bustling Midlands town of Northampton - Planet Retail.