No Frills Discounter For SA

No frills discounter for SA
This week we have a report from Planet Retail that highlights the growth of discount stores in Europe. The interesting thing is that this format is gaining market share in emerging markets as well as in developed markets and it is not just the traditional no frills discounters that are getting in on the action. Tesco are expecting great things from their no frills format that was launched in the Czech Republic, and there is little doubt that the model will be rolled out in other markets should the pilot be deemed successful.

South Africa does not as yet have a no frills discount offering, but I am confident that in the not too distant future we will see this gap filled by a retailer - possibly even an international one. The format offers a much needed price benefits for the middle to lower income segments which makes it the ideal basis on which to develop a model for Africa.

Here are two questions on which to ponder:
Are South African retailers prepared to develop a no frills format?
Are South African retailers prepared for a foreign entrant that adopts this format?

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

Unique Marketing and Education Upliftment opportunities for SA brands! Two Durban ladies have launched EDU-Self - a uniquely South African publication with a highly visual and multi-lingual format, enabling adult learners to teach themselves in their work place, in their own vernacular! Companies are invited to put their marketing and corporate responsibility budgets to this creative way of educating around the use of their products with a highly credible, educational message. Read more.

ID cards combat crime
Crime is a perennial and almost endemic problem in South Africa, and the FMCG industry is frequently seen as a soft target by criminal gangs. The Consumer Goods Council of South Africa has instituted a number of highly effective anti-crime initiatives, and to counter more sophisticated criminal activity, is stepping up its high-tech introduction of ID cards which provide an additional buffer to losses from both internal and external crime.
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Higher interest rates not necessarily an end to growth
Although food retailers have not been as badly affected by interest rate hikes, other retail sectors of the JSE have taken a hammering after last month's 50 basis point rise in short-term interest rates. Having risen by 38% in the past year, the general retailers index has given up around a third of that in two months. But trading updates from the major players, coupled with comments from other retailers, suggest the falls may have been overdone and the share prices could be due for an upward rerating.
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SA grocers brushing up on environmental concerns
South African supermarket groups lag many of their European counterparts when it comes to recycling efforts, but some are playing catch-up on this environmental issue. In 2003 the government banned free lightweight plastic shopping bags, initially resulting in dramatically lower use of these bags, but customers have grown accustomed to paying for them and use has crept up, though not to preban levels.
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INTERNATIONAL REPORT

The future of discount retailing in Europe
A new report from Planet Retail reveals that more Europeans are turning to discount retailers. According to the report, much of the growth is due to international expansion as well as increasing consumer acceptance of the discount store format.
It attributes the change in attitude among European consumers to discount retailers' investment in marketing, new store concepts and broader product ranges.
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RESEARCH

South Africans as recreational shoppers
Three quarters of the world's internet-using population classify themselves as 'recreational shoppers' - meaning that they shop for entertainment rather than necessity, at least occasionally. The South African picture is very similar, with only 26% of web-using consumers never visiting stores for recreational purposes.
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SA consumers shop mainly on weekends
The Newspaper Advertising Bureau has conclusively researched consumers within its footprint areas and confirmed that Wednesdays and Thursdays are the days most used for planning shopping trips. Fridays, Saturdays and to a degree Sundays, are highly utilised for actually making purchases.
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Connecting with consumers through effective Product Placement drives positive emotive linkages
Product placement, although not a new concept, has often been overlooked in classical marketing strategies, says Grazyna Koscielska, director of brand and licensing agency Stimulii. However, with the introduction of technologies such as PVR and Tivo (US equivalent), increased clutter and consumer switch off during commercials, marketers have to continually fight tougher battles for consumer attention.
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FEATURED BRAND

Clover Cheese Clover has every kind of cheese for any cheese-lover's palate. Choose from a variety of hard cheeses, cottage cheeses, feta and speciality cheese, and many more. Read more.

BRAND NEW

New! Introducing Bakers Froozels Bakers Froozels, the new fruit-flavoured baked crisp snack is another exciting innovation from the Bakersman. Designed as a convenient, tasty snack, these bite-sized, scrumptious biscuits, covered with sugar sprinkles, are ideal for an anywhere, anytime treat. Read more.

New! Introducing new sparkling Eno Apple Introducing the new sparkling Eno Apple - the first of its kind! Currently offered in three flavours - regular, orange and lemon, Eno continues to grow from strength to strength with the introduction of this exciting new variant. Read more.

New! Seagro's odourless seaweed gel Another new addition to the Seagro product range is their odourless seaweed gel. This product is recommended for potplants, hanging baskets, bulbs and seedlings as well as a seed soak to increase seed germination. This product is very economical as small dosages are required for maximum results. Read more.

BRAND ACTIVITY

Exciting developments for Nutritional Foods Sunspray Food Ingredients, formerly part of Nutritional Foods, is proud to announce the start of a new era. Nutritional Foods has restructured to focus on its core business of spray-drying. The restructure involves the sale of the Klerksdorp factory, where the company makes nutritional products for feeding schemes and catering. Read more.

Congratulations to the Trinco Tazz winners! Trinco's national shopper promotion, which ran until the end of June, offered shoppers the opportunity to win one of two Toyota Tazz Sports, as well as weekly cash prizes. The draw for the winners of the vehicles took place on 18 July. Five finalists were drawn from across the country and flown up to attend a brunch and "key fitting" ceremony at the offices of Samplex in Johannesburg. Read more

WINE, BEER & SPIRITS

Neethlingshof noble late harvest wins in inaugural terroir award
Neethlingshof's newly released 2005 Noble Late Harvest Weisser Riesling has been judged the national winner in the natural sweet wine category of the inaugural SA Terroir Wine Awards. The Stellenbosch estate's signature wine was also a winner in the 2005 SA Young Wine Show in the noble late harvest class. Winemaker De Wet Viljoen describes it as "liquid gold but with a vibrant acidity that tempers its lovely apricot sweetness".
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Zonnebloem Lauréat 2004 strikes its second international gold Zonnebloem Lauréat 2004, known internationally simply as a Cabernet Sauvignon/ Merlot blend, has continued its winning streak internationally by clinching a Best in Class gold medal at this year's International Wine & Spirit Competition. Earlier this year, this prized Bordeaux blend also scooped a gold medal at the prestigious 2006 International Wine Challenge in London. Read more.

RMB Winex Cape Town - 1 200 wines from over 200 producers on show
Sponsored by Rand Merchant Bank and partnered by British Airways Comair and 567 Cape Talk, WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries. It represents the entire spectrum of Cape wine producers showcasing every wine route in the country. In a major innovation, RMB WineX Cape Town, now in its fourth consecutive year, will extend Wine Route Cellar Door sales with a SHOP@SHOW facility that will include home delivery at no extra cost.
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FEATURED RETAIL SERVICES

Supply Chain Services Supply Chain Services is a national sales & distribution company in the food, beverage & pharmaceutical industry. Read more.

TFD Network Africa TFD are the forward-looking distribution company that keeps you in control of your outsourced distribution, thus growing your market position, brand strength and profitability. Read more.

RETAIL SUPPORT

Battling to keep the soul of the Midsize Enterprise in tact while shooting for optimal growth Movements in trade and entry points into new high growth markets in the world economy are catapulting Small & Midsize Enterprises (SMEs) into a new league to compete in more countries against large companies. But midsize businesses are finding globalization cuts both ways - for each new opportunity there is a gargantuan new challenge. Read more.

Datamax Linear Scanners ensure barcode readability ProScan Media Products(PMP), specialists in barcode labelling products and printing solutions, recently introduced the Datamax range of Linear Scanners, which is an affordable, rugged and effective method of ensuring barcode readability. Read more.

Transunion and Cheque Guarantee Services join forces
South African retailers' fight against cheque fraud has been significantly boosted by the acquisition of Cheque Guarantee Services (CGS) by TransUnion. The merged operation, TransUnion Cheque Guarantee Services, draws on the best of both companies. Now businesses can leverage TransUnion's business intelligence capabilities and global experience in the development of risk management tools, services and solutions, and CGS's unique high-tech system of cheque transaction analysis and tracking, to assist South African retailers to manage their cheque risk more effectively.
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FEATURED EVENT

Shop-X Africa 2006 The South African Association for Stationary, Home & Office Products (shop-sa), will be holding its annual trade show with an exciting new look, feel and name: SHOP-X 2006! Read more.

EVENTS

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.
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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.
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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…
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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.

ShopX Africa 2006
21 - 22 August 2006 - Durban Exhibition Centre (Conference & Expo)
7 - 9 September 2006 - Sandton Convention Centre (Trade Exhibition)
SHOP-X is the only comprehensive and influential stationary and office trade show on the African continent.
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Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
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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.