School of Retail
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THIS ISSUE: 13 May - 19 May
10 things we didn’t know before the Competition Tribunal met to discuss the Walmart/Massmart merger:
Our Man in the Tribunal 16/05/11
Post a Comment
Michelle20 May 2011 (11:36:04 AM)and banking, internet, celluar
Vanessa20 May 2011 (10:00:06 AM)Bring it on Walmart, retailers need to feel the bite of ripping us off for so long! If this deal does not go through then I want to know how much the likes of PnP, Checkers, Spar etc. put in the back pockets of decision makers!!
Smiley J20 May 2011 (09:19:41 AM)Talking about competition - only wish Walmart was in the electricity business....
nkosipeter19 May 2011 (07:48:39 PM)If supermarkets can import pasta 40% cheaper, why the hell don't they? Trying to protect a cosy deal with Tiger?
Consumer needs competition19 May 2011 (04:52:27 PM)OK,so let Walmart come in and open a bank then - thats where we REALLY need some competition.
Competitor Lover19 May 2011 (04:49:10 PM)We need competition to keep the retail sector healthy and on the ball - We should welcome Walmart with open hearts.Since when was competition bad for the consumer ?
concerned shopper19 May 2011 (04:23:25 PM)I hope to hell that walmart get this right.
some of the big 3 retailers need a lesson to be taught.
SPAR delivered, as the expression goes, a solid set of results for the six months ending March 2011, with turnover up 9.1% to R19.1billions, and operating profit up 4.1% to R706million. Captain Hook is cautiously optimistic about likely trading conditions for the rest of the year, although factors like rising fuel and utility prices will continue to put the squeeze on shoppers, he believes. He is also of the view that the business in turn needs to be squeezed harder to deliver the sorts of results that happy punters have come to expect from the business. For example, while warehouse volumes were 6.9% up for the period in question, costs were up 16.8%, due in part to the rising price of getting goods to stores, but also because of the 11 stores SPAR has bought back from members in order to keep the footprint up, and all the bills associated with running those. And then there was the move of Build it (which grew turnover a whacking 21.4%) into wholesaling, itself a not inexpensive exercise. Comment: A business quietly continuing to deliver the goods, quite literally, as it always has, in some tough trading conditions.
A sad farewell to merchandise director Kevin Korb, who announced his retirement over at the Big Blue last week after 30 years before the mast, man and boy, having started as a spotty trainee manager, and enjoying secondments to Sainsbury’s and Franklins in the course of an illustrious career with SA’s foremost retailer. His ample shoes will be filled in the interim by Peter Arnold, currently head of Fresh Foods and the driving force behind the opening of the Hurlingham flagship, broadly acknowledged to be the business as far as best practice goes. In other PnP news, Bakar Jakoet has officially taken over from Dennis Cope as CFO after a respectable handover period, and Jeff van Rooyen has been appointed as an independent non-executive director on the main board. Comment: Comment: Regarding Mr Korb, a sad farewell to one of the true gentlemen of the industry from Trade Intelligence – he has been a friend to the business.
Tatler Reporter 18/05/11
MARYNA - BLACK HOLE HOLDINGS CC19 May 2011 (04:11:40 PM)Kevin - our sincere wishes accompanies your well deserved retirement God Bless - Black Hole Management & Staff
Everyone’s favourite fizzy brown liquid has been with us for 125 years, and in celebration, here are some fun facts for the troops:
The stuff was invented on 8 May 1886 by one John Pemberton, during America’s golden age of quackery, as a cure for headaches and general listlessness, and the original formulation probably contained a sprinkling or two of the old Bolivian Marching Powder. It originally sold at the less than brisk rate of 90 glasses per day, but within years of being bought by Asa Chandler and subsequently mass-produced, it began to enjoy understandable popularity across the United States.
It found its way to Europe in 1919, but has never been known as le Coca Cola.
It currently enjoys a 17% share of the global market and is the world’s most popular soft drink.
The original recipe is still, apparently, kept under lock and key.
It is the only thing which makes cane spirits even remotely potable. Comment: Comment: You should try some. It’s great!
There is, you will be relieved to know, room for further consolidation on Planet Beer, according to SABMiller CFO Malcolm Wyman, who is, let’s face it, probably the guy to ask. According to the Malcster, as we beery guys like to call him, there are some markets ripe for consolidation, a term which here means “buying everything in sight until the competition boys put a stop to it”*. One such market would be China, where according to reports some guy in Guangdong province still makes his own beer in a bucket for family consumption on special occasions. And the pin-striped party sharks over at Goldman Sachs believe that Aussie crowd Foster’s and French crew Castel could be next on the list for takeover.
Comment: Comment: Consolidation in China at least, it is believed, is necessary to see profits growing apace with volumes.
*with a nod of acknowledgement to Lemony Snicket
Business Day 13/05/11
Retail sales rose a pulchritudinous 5.1% year-on-year for March, with February’s number revised down a natz to 5.5% according to the entrail-readers and cloud-interpreters over at StatsSA. The largest contributor to the 5.6% increase in the first quarter of the year was general dealers, who always remind us of those guys with mutton 0-chop sideburns in Saturday morning westerns with 5.4%; retailers in textiles, clothing, footwear and leather goods, with 5.1% and all other retailers, with 6.2%. The highest annual growth rate was recorded by retailers in household furniture, appliances and equipment, with 11.8%; general dealers, with 8.0%; retailers in pharmaceutical and medical goods, cosmetics and toiletries, with 5.6% and all other retailers, with 5.5%.
Comment: So that’s alright, then.
The Department of Health on the one hand and the Church of Rome and Nestlé on the other are unlikely combatants in a brouhaha about whether or not churches in the Eastern Cape are entitled to sell (at a small price) cans of baby formula marked “State use only – not for sale.” This, argues Nestlé, is a preference and not an obligation of their contract to supply formula to the state.
The Times 10/05/11
The price of chicken is about to take flight to the tune of 15% by the end of the year as the price of maize and other animal feeds heads north. The local industry is worried stiff about this, as the strong rand is likely to make imports even more competitive than they currently are – about 16% of locally consumed chicken comes from Brazil.
Business Times 15/05/11
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