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Unaudited interims for the six months through Feb from Clicks; how’s their year shaking out? Turnover was up +6.8% (excluding vaccines) to a nice neat R20bn, with retail turnover increasing +11.9%, and something they’re calling ‘adjusted total income’ +8.1% to R5.8bn. As usual with Clicks though, it’s the store numbers that tell a more interesting story, and it’s always one of consolidation and expansion. In the last six months, it has added 21 new stores, for a total of 861, and opened 18 pharmacies, with a national footprint of 691 and a probably unassailable lead in the sector. The target for the FY is 50 stores and 40 pharmacies. And here’s an even more interesting number: 24. That’s the number of hours their latest acquisition, M-Kem, a venerable pharmacy in Bellville, stays open. It’s the first all-night store in the Clicks stable, but you can bet it won’t be the last.

Comment: In all the years we’ve been reporting on the business, Clicks has exhibited nothing but drama-free execution of an effective strategy. A South African gem. For more on these results, have a look at our summary here.

Pick n Pay has embarked on its great reshuffle, announced in May last year, that will see the eponymous supermarkets business spilt into two distinct brands – Pick n Pay, and Pick n Pay QualiSave, the latter focused on more budget-conscious shoppers. Around 40% of stores are expected to trade under the QualiSave brand and the restructuring will necessarily involve some fallout, which is coming more sharply into focus: around 1,000 junior management roles have been eliminated in stores. However, the equivalent number of positions are also being created, so the net loss of jobs – if not careers – is likely to be slight. In other PnP news, the business has implemented the SAP Customer Activity Repository, built on the apparently powerful SAP S/4HANA platform, to help manage the 30 billion+ transactions handled in its stores every year. “We needed more efficient and accurate inventory management as well as simplified financial and administrative reporting to ensure our decision makers have a real-time view over the business,” says IT Supply Senior Manger Elize de Klerk.

Comment: Busy times over at the Big Blue.

Measuring the immeasurable this week is Brand Finance, according to whose ‘South Africa 100’ ranking, SPAR is the fastest-growing South African brand, up +48% to a brand value of R21.4bn. Pick n Pay with brand value up +30% to R13.5bn is the strongest brand with a brand strength index (BSI) score of 94 out of 100, while Woolies has the highest sustainability perceptions score of 6.02 out of 10. Woolies, with a brand value of R21m some change, is SA’s 6th most valuable brand, followed by SPAR in 7th, then Shoprite (12th), Checkers (13th) and Pick n Pay (15th). Next up, Dis-Chem, who has upped the ante on its DeliverD on-demand 60-minute delivery service, giving punters the option of scheduling their preferred delivery times in hourly increments. Dis-Chem has also improved the product selection and sales on the service have grown +136% in the last 12 months. Finally, Checkers will be selling the (did we inadvertently say inexplicably) popular global hydration drink phenomenon PRIME for the apparently low price of R39.99, with purchases limited to eight per customer.

Comment: Used to be the young ‘uns went crazy for yo-yos and dingbats…

Pity the fools who go up against Walmart in the US, where it enjoys a 25.2% share of that sizeable market, with big box discount club Costco trailing at 7.1% and Kroger at 5.6%. After that it’s pretty much all rats and mice, all the way down to Whole Foods tied in ninth with Dollar General, both at 1.8%. Next, to France, where global sustainable food business InVivo is looking to take a majority stake in the supermarkets owned by Casino, which is in a bit of hot financial water. The deal would see Casino joining forces with Teract, a smaller chain already owned by InVivo. Finally, in the UK, Sainsbury’s is taking loyalty to the next level with its Nectar Prices promo, which will give all 18 million of its loyal Nectar customers big savings on over 300 products. It claims to be the only retailer to offer the combination of lower prices and extra personalised discounts.

Comment: Value promotions, did you say? You really should have a look at the latest Trade Intelligence report on the subject, over here.

A slowish news week among the suppliers, so we’ll just have a look at a couple of sets of interims and what have you. Globally, Heineken reports that overall volumes fell -3% on an organic basis for the quarter through March, with tough conditions in Vietnam and Nigeria, the latter to do with the government’s decision to replace old currency notes, removing around $4.6bn in cash out of circulation. Some of which could have been used to purchase cold ones. The business is however sticking to its prediction that operating profit will grow organically by mid- to high-single digits for the year, which saw a 4% bump in the share price. Also globally, Coca-Cola saw first-quarter revenue climb +5% to $10.98bn, as demand for its sodas remained robust even as price increases caused by higher shipping and commodity costs kicked in. Finally, troubled sugar giant Tongaat Hulett has been chastised by rivals Illovo and RCL FOODS for the non-payment of its portion of an industry-wide levy to the tune of R1.5bn, with other producers having to kick in the difference to keep the industry on an even keel.

Comment: Complex. But basically, the travails of Tongaat are a rolling, industry-wide disaster and good for no one.

As you know, consumer price inflation ticked up for the month of March to +7.1%, or 0.1% month-on-month from February. What gives? Food price inflation was the big contributor, at +2.4%, or just over a third, and this, in turn, was driven by higher domestic production costs and rand weakness, which accounted for about half of this, over the 12 months in question. Domestic production costs, breaking those down, are made up of a bundle of factors, particularly load shedding and other input costs, including transport. Hence the disconnect between the decline in food prices globally and our own situation. And spare a thought for the poor farmers, with their three o’ clock teas on the stoep and their new Hiluxes. Because just as they poised to make a killing selling rand-produced crops for US dollars, food prices go down -11% for the month of March. And food sold back home, of course is sold for ailing rands.

Comment: And while food price inflation is set to moderate later this year, who knows which way the rand will blow in the whimsical breezes of the global economy?