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Big new Massmart DC at Brackenfell in the Western Cape underway. Let’s have a peek under the old bonnet, shall we? Over to you, Tyrone Kleinjan, development manager for the project: “The Massmart DC boasts a beautiful, high, curved and seamless roof – which measures over 60,000 square metres – making it one of the largest single roof surfaces in Cape Town,” he extols. “The most important element in warehouse design is the shape of the roof, and the Massmart DC has a continuous roof sheet system to minimise any potential weak points where water can enter the building.” Roof aside, it’s all green: inverter-type aircon for -25% less power, rainwater harvesting, LED lighting and motion sensors to keep them off when they’re not needed, water-wise plants, you name it. The facility covers an impressive 53,000 squares and should be up and running by September next.

Comment: Bold. Massmart have not been without their troubles the past couple years, but clearly, they are here to stay.

Some interesting developments on the leadership team over at Clicks, a business going from strength to strength even in these, ahem, “challenging times” (can we find a new descriptor please? Ed.). Bertina Engelbrecht, currently HR director, will also take over strategic stakeholder engagement in her new role as Group Corporate Affairs Director. UPD MD Vikash Singh has been promoted to Managing Executive of Clicks, bringing his financial and supply chain experience to the post. And Trevor McCoy comes in from Sanofi to take over at UPD, after 25 years in and around pharmaceuticals. And a milestone: Clicks has just opened its 750th store, in the Cape Quarter at Greenpoint. Cutting the ribbon at the new property, CEO Vikesh Ramsunder pointed to the ongoing growth of the business. “In 2016 we were at 500 stores,” he observed. “Over the past five years we have significantly grown our retail footprint, with 50% of the population in South Africa now within a 6km radius of a Clicks pharmacy.”

Comment: A great achievement from a business whose leadership team is starting to reflect more accurately the demographics of the Country it serves. Nice one!

“What’s up with formal independent retail?” our cannier readers are asking, and we’re here to tell them. The independent FMCG market (represented by unlisted wholesalers and retailers) remains a key area of opportunity for suppliers in South Africa. But! These opportunities are exposing independent operators to encroachment from corporate retailers who are infiltrating the independent trade through wholesale dealing, as well as through wholesale and retail formats. For the informal retail sector, the threat comes from the collaboration of smaller route-to-market players, such as midi-wholesalers that are capitalising on growth opportunities. The formalisation of the informal retail sector presents a significant threat to the buying group sector, as immigrant traders support each other in the formation of buying, distribution and selling co-operatives, and reveal increasingly sophisticated trading aptitudes. For a more detailed look at what’s happening in this vital and dynamic market, may we suggest you read our opinion piece on the formal independent trade over here. Or just order the full report, here.

Comment: For well over a decade now, Trade Intelligence has been bringing insights from South Africa’s retail landscape to our clients across the industry. We’re an indispensable partner in helping you to build more effective and profitable trading relationships – #justsaying.

Over in the US and A, retailers did a roaring trade on Black Friday, with a record $9bn spent online, up +21.6% from 2019. But interestingly, just a touch down on the $9.4bn spent on Cyber Monday of the same year. Instore, very understandably, different story: sales were -30% down on last year, and store traffic down by around -50%. Among the traditional retailers, the big winners were large discounters like Walmart and Target, apparently. In the UK, a similar tale: while online sales hit record levels, a report from Barclaycard, Britain’s biggest credit card provider, shows that overall sales declined by -10% YoY from last year. And speaking of online: overall, according to the UK’s Office for National Statistics, online sales accounted for about 28.5% of all spending in October, compared with 19% in January, during the ‘Beforetimes’. Online food sales have nearly doubled since then.

Comment: We’re still running the numbers on Black Friday here in the Beloved Country. Look out for our story on this coming soon.

News this week of a South African icon. Last year, you may recall, Tiger Brands disposed of its 40% stake in Oceana Brands, owner of Lucky Star pilchards, which comprises 25% of its business and contributes 50% to revenue. And things have been looking up for this great brand, a favourite of “Minster” Mboweni who is prone to share recipes on Twitter since then (true story, see more here). “Tiger's exit has helped us to explore certain adjacencies to Lucky Star that we wouldn't have been able to explore before,” explains Oceana CEO, Imraan Soomra. These adjacencies include Lucky Star Corned Meat, Lucky Star Chakalaka, and Lucky Star Baked Beans, all of which have been launched since the unbundling, capitalising on the heritage and popularity of the existing brand. The baked beans have proven a hit so far, with the data still coming in on the other ranges. Under the aegis of Tiger, it is possible that none of the spinoffs would have seen the light of day.

Comment: A fine balance: extend the brand, or cleave hard to its purity? It seems like Oceana are getting it right.

To the fields! Particularly those gently undulating ones to be found up and down the KZN coast, and points inland, where grows the golden cane. And scenic as those acres may be, they take some maintenance and protection. Just ask the South African Sugar Research Institute (Sasri), which is harnessing technology in its efforts to prevent insects from devouring the bountiful harvest. “Sasri is aiming to develop a computer-based tool for predicting yellow sugarcane aphid outbreaks in advance using weather and crop management data, providing additional guidance for proactive treatment decisions,” says South African Sugar Association (Sasa) executive director Trix Trikam. The aphid is a North American import which arrived on our shores in 2013 and has since spread as far as Mpumalanga. Sasri is also empowering canegrowers to develop solutions through participatory research for the control of various weeds, diseases and pests, as well as for the management of cane variety and irrigation.

Comment: A brief snapshot of what we sense is a fascinating and essential field (see what we did there?).

No, but seriously, some good news at last from the bearded sages over at StatsSA, who do a wonderful job of keeping us informed of the numbers that drive our lives. It turns out that our economy enjoyed a significant rebound in the third quarter of this year that we have no choice but to call 2020, a name that will live in infa…where were we? Ah, yes: GDP was up quarter-on-quarter by +13.5% in Q3, with the quarter-on-quarter annualised and seasonally adjusted growth rate at +66.1%, after a dive of -16.6% and -51.7%, respectively, in the second. So yes, admittedly, off a very low base, and sitting -7.9% behind for the year to date. Manufacturing was the star performer by a cobbler’s mile at an annualised +210.2% quarter-on-quarter, and trade breezing in, a respectable second, at +137.0%, with wholesale, retail and motor trade sales, supported by increased consumer spending, doing much of the running.

Comment: OK, much still to unpack. And the appropriate mood is not euphoria, we get that. But this is something, and a tribute to some solid fundamentals coming out of lockdown.