South African retail sentiment is under extreme pressure after this month's hike in interest rates and a higher than expected surge in the Producer Price Index (PPI). The rise in PPI indicates that we are bound to see inflation in consumer prices within the next few months, and there seems little doubt that we will see another increase in interest rates in August.
And, with another petrol price increase of 35c this month, debt laden consumers will need to tighten their belts which may put pressure on the retail sector. While most economists believe our economy is sound and growing, it looks like there are a few tough months ahead for retailers.
Craig Ballantyne
craig@fastmoving.co.za
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editor@fastmoving.co.za
NEWSBYTES
What's behind SME competitiveness: Banking and mobile communicationsMobile communications and banking services are emerging as two of the most important factors behind the competitiveness of small and medium enterprises in South Africa. According to the interim findings of SME Survey 2006, the fourth annual study of SME competitiveness, released following the study of 6,000 decision-makers reaching its halfway mark, government support programmes continue to rank rock bottom among a wide range of factors.
Read more.
Oceana's black staff to take on 22% stake
Oceana has entered into a black empowerment transaction that will see 22.4% of the group transferred to a consortium made up of Oceana's black employees. The transaction will see 25.9-million Oceana ordinary shares bought by the black employee share trust and Brimstone for R15.21 a share, or R395m excluding transfer costs.
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SAB sells juices company in Columbia
Global brewing giant SABMiller announced on Thursday that its Colombian subsidiary Bavaria S.A. has entered into an agreement to sell its fruit juice business to the Colombian beverage company Postobón S.A. for a cash consideration of US$55.3 million.
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Pfizer sells its consumer unit to J & J
Pfizer have said that it has reached a definitive agreement to sell its Pfizer Consumer Healthcare (PCH) business to Johnson & Johnson for $16.6 billion in cash, resulting in about $13.5 billion in after-tax proceeds. The agreement, approved by the Pfizer Board of Directors, completes a review of strategic options for the consumer business that Pfizer initiated in February.
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GLOBAL NEWS
Massive Supervalu investment in new stores
In the USA, SuperValu plans to invest about USD1 billion to open new stores and revamp its current store base. According o chief executive Jeff Noddle, SuperValu will remodel more than 75 stores and open an additional 75 new ones.
Read more.
Asda takes legal action against strike
Wal-Mart owned Asda in the UK has announced that it is to take legal action in a bid to head off a planned five day strike starting June 30 by workers at its distribution depots. Asda has written to the GMB union stating that it plans to seek an injunction against the trike because of 'serious irregularities'' in a ballot of workers.
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FEATURED BRAND
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BRAND NEW
Packaging makeover for Niknaks |
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Hand grips to lighten shopper load |
BRAND ACTIVITY
Introduce your brand with Monica Childs Marketing |
Appletiser and Mangwanani team up for 100% Pure Pleasure |
Frisco's winter promotion draws its first winner!
Stephanie Vosloo from Phalaborwa in Limpopo is the first winner in Frisco's Winter Promotion competition. Stephanie won R40 000 during the live draw, which took place on Saturday 24 June 2006 at the Pick 'n Pay Promenade Mall in Mitchell's Plain.
Over 14 000 sms entries were received for this draw.
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FCB Durban and Farmer Brown make enjoying chicken easier
After an absence of approximately 16 years, Farmer Brown is back on television. FCB Durban's new Farmer Brown television campaign recently broke, with two new commercials featuring Farmer Brown Easybraai and Easyserve - two exciting ranges destined to change the chicken market forever.
Read more.
It's time for a Cuppa… sponsored by Freshpak Rooibos
CANSA is holding its annual Cuppa for CANSA drive from June to August this year, with Freshpak Rooibos as one of the headline sponsors. Cuppa for CANSA is a drive to assist CANSA to raise funds for cancer prevention programmes and patient services. CANSA is a non - profit organisation that receives little state funding, thereby it relies heavily on donors, sponsors and fundraising activities to fund its work in all communities in South Africa.
Read more.
Five Roses celebrates fashion and beauty at ABSA Soweto Festival
The ABSA Soweto Festival will be taking place from Friday 22 - Monday 25 September at the Walter Sisulu Square in Kliptown, Soweto. Also known as Freedom Square, the site is a historic one, where the Freedom Charter was signed by anti- apartheid organisations in 1955. Five Roses, South Africa's leading tea brand, will be sponsoring the fashion show and the beauty pageant that is taking place at the Festival, which offers a delightful way for South Africans to celebrate Heritage Day.
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WINE, BEER & SPIRITS
Peroni to launch in JHB |
Get The Vodacom Durban July's Coolest Ticket with MGD |
Indalo takes centre stage |
Tops at Spar sponsors new wine festival
The inaugural Jo'burg Wine Show, taking place at Gallagher Estate from Friday 28 July to Sunday 30 July 2006, is delighted to announce their headline sponsor - TOPS at SPAR. With over 150 stores countrywide, Spar's popular 'store-next-door' concept has secured its position as having the greatest number of liquor stores under one banner, boasting an exclusive product range including whiskies, vodka, gin and cream liqueurs.
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FEATURED RETAIL SERVICES
B-LOONY Balloons reflect good times from childhood onwards, with birthdays, parties and fun events. Use this feel good factor, to promote your company and advertise with balloons. Read more. |
Sainsbury Design |
UCS Solutions UCS Solutions is the business and IT services and solutions arm of the JSE-listed UCS group. With a strong retail and consumer goods pedigree, we have built relationships with 18 of the top 25 major retailers in South Africa. Read more. |
RETAIL SUPPORT
| SAP Leads Industry in Driving Customer Evolution to Enterprise SOA At the annual SAP international customer conference beginning today in Paris, the company's executives will detail new tools, strategies and the industry's first services-enabled ERP suite designed to simplify and expedite customers' road maps to enterprise service-oriented architecture (enterprise SOA). Read more. |
Keynote show experiential brand activation at its best Keynote Communications were given a brief to develop activations for the launch of the new Optimum Care range of products for ethnic hair. Rising to the occasion, Keynote devised a concept that met all of the expectations of the brand custodians, such as highly visual and impactful branding, maximum awareness in high traffic environments, practical demonstration of the benefits of the product range that individual consumers could look forward to, and push and pull to immediate sales. Read more. |
BlueCasting™ now made in SA
BlueCasting™, the worlds leading proximity marketing system, has taken a bold move to display its support for the South African market by assembling BlueCasting™ servers locally. The decision was made after due research was indicating that the expansion of the popular BlueCasting™ proximity marketing system was being hampered by the high cost of the hardware imports.
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Bridging the gap between WMS & TMS
Warehouse management and transport management have always been two clearly separate components in the supply chain and this is mainly due to each having its own operational complexities that require specific management tools. However, in terms of data created in each system, the two aspects are directly related and to cross this divide the two management systems really need to be able to 'talk' to each other in order to manage the supply chain as a whole.
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EVENTS
Finding the Fortune at the Bottom of the South African Pyramid
12 July 2006 - Parktown
Eighty20 brings you a fascinating overview of the low-income market in South Africa.
Read more.
SOCAP Breakfast Event
14 July 2006 - Fourways Crossing
Brad Arden, Director of TQ² Consulting: Building Team Intelligence at Work talks about "Service is a Team Sport".
Read more.
Annual Franschhoek Bastille Celebrations
15-16 July 2006 - Cape Town
A "great food and great wine" themed festival to be held in Franschhoek.
Read more.
AMASA golf day to raise bursary funds
19 July 2006 - The Wanderers
The Advertising Media Association of South Africa will host its fund raising golf day to raise funds for a Bursary Fund to aid and educate entry level media professionals.
Read more.
Africa's Big Seven 2006
23-25 July 2006 - Midrand
An integrated exhibition platform that showcases food, retail and FMCG products together with the processes to manufacture them.
Read more.
Cleantex Africa 2006
23-25 July 2006 - Midrand
Africa's hygiene, cleaning, maintenance, pest control and facility management services exhibition.
Read more.
The Jo'burg Wine Show
28 - 30 July - Gallagher Estate
A three-day event affording the opportunity to learn, try and buy wines in a relaxed and unassuming setting.
Read more.
Bar Code Basics
8 - 10 August - Durbanville & Germiston
Aimed at the Design, Repro and Print industries to bring them up to date with Retail Bar Code Quality and GS1 Standards, and their impact on consumer packaging.
Read more.
Nedbank Cape Winemakers Guild Auction
17 August 2006 - Camps Bay
Discover the exceptional wines South Africa's leading winemakers will be offering at the 21st Nedbank Cape Winemakers Guild Auction.
Read more.
The 3rd South African Red Bull Box Cart Race
27 August 2006 - Johannesburg
One cart, 4 team members, an operational steering wheel, functional brakes and a hooter…
Read more.
RMB WineX Cape Town
30 August - 1 September 2006 - CTICC
WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries.
Read more.
Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
Read more.
Retail Loss Prevention Africa 2006
27 - 30 November 2006 - Sandton Convention Centre
Focused on delivering expert experience and know how for ensuring you reduce your losses and stock shrinkage.
Read more.
THE FAST MOVING FACT
According to Eighty20, 62% of South Africans think it is worth chopping down a forest if it means more people can get jobs and money.
For Fast Moving Fact submissions, please e-mail editor@fastmoving.co.za
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