THIS ISSUE: 17 Aug - 24 Aug
Welcome to this week’s Trade Tatler where we cover a real mix of stories, from Dis-Chem to Pick n Pay Clothing to the fact that Walmart has only just now started delivering cooked rotisserie chicken. We also look at some of our key economic indicators, some good, some really not. And Checkers cracks the code to brand longevity. Enjoy the read.
YOUR NUMBERS THIS WEEK
YOUR NUMBERS THIS WEEK
RETAILERS AND WHOLESALERS
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Dis-Chem Medicine men (and women)
Dis-Chem has welcomed the decision by the Pretoria High Court allowing specially trained and licensed pharmacists to manage and prescribe first-line antiretroviral therapy, and TB-preventative therapy to patients. The programme, formulated and implemented by the South African Pharmacy Council (SAPC) at the request of the Dept. of Health, is known as the ‘Pharmacy-Initiated Management of Antiretroviral Therapy’ (PIMART) initiative and firmly extends the reach of primary health care services in treating and preventing the spread of HIV and HIV-related tuberculosis. The programme was challenged by the Independent Practitioner Association which argued that the SAPC had not given interested parties sufficient opportunity to comment on its implementation and that it “unjustifiably and irrationally extended pharmacists’ scope of practice to encroach on that of medical practitioners”. Not so, ruled the court, declaring that implementation of the programme does in fact fall with the SAPC’s mandate. “We applaud any move which will expand access to HIV services,” said Tanya Ponter, executive manager at Dis-Chem. “This decision ties into our healthcare ambitions and focus to provide integrated primary healthcare to a greater number of consumers aimed at increasing access, reducing cost, and delivering better health outcomes for more South Africans.”
Comment: We support bringing primary healthcare to those South Africans who need it most. A great move.
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Clothing Model citizens
We haven’t traditionally been in the business of reporting on apparel, but with our grocery retailers encroaching more and more on this profitable category, it’s fitting for us to do so. First up, Pick n Pay Clothing which is launching its latest Futurewear designer collab, the Thando Ntuli x Kiav x Pick n Pay Clothing collection. Combining youth, creativity, and empowerment, the projects brings together 26-year-old fashion designer from Soweto, Thando Ntuli, who designed the clothing and Kiav Mitoo, a 20-year-old graphic design student and artist from the Mother City who designed the print for the fabrics. Next, there’s Woolworths, which will be introducing eco mannequins to its newly launched WEdit stores, including an eco ‘plus size’ version. The mannequins are made from used coffee bean sacks that are recycled and mixed with a plant-based resin to bind the fibres and water-based paints are used to ensure that they are 100% biodegradable and recyclable, as well as safer to make. They are also lighter than traditional fibreglass mannequins, making them easier to handle and transport.
Comment: One wonders if the eco mannequins also carry the distinctive aroma of great coffee. A genius way of getting more feet through the door?
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In Brief Small wheels keep on turning
How does one ensure that a brand has legs – or indeed wheels, as the case may be? By making a branded ride-on toy, that’s how. Checkers has just launched a brand new Sixty60 ride-on scooter, complete with the familiar teal delivery box that opens and closes, perfect for keeping the little ones distracted while the ‘Checkers man’ arrives with their favourite treats. Why not also add to your order the toy delivery driver figurine to go with the 1:12 scale-model toy motorbike you bought a couple of years back, although that too has been relaunched if you didn’t get your hands on one then. Moving on to Clicks – its third Beauty Playground event held in Cape Town attracted 3,000 punters who enthusiastically engaged with the brands on show including Dove and SMME brands Masodi Organics, Portia M and Native Child. A key focus over the next five years, says Clicks, will be highlighting Black women-owned SMMEs, and the Group plans to purchase R4.5bn worth of goods from these entrepreneurs over that period. Watch this space KZN – the event which has been held only in Cape Town and Jozi thus far, will soon arrive in that green province.
Comment: Building small businesses by bringing their brands directly to the people who want them. Nice work, Clicks.
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International Retailers Been there, ordered that
Over on Blighty, Tesco is recalling some of its sausage rolls and steak and ale pies since they may contain bits of metal and blue plastic. Their bad, but making up for that slip are the clear caps the retailer will now be introducing on its private label milk bottles. This simple change that will make it easier to recycle both the bottle and cap together, resulting in a saving of 3,900 tonnes of recycled plastic which can go back into producing new milk bottles. Speaking of dairy, Aldi has also just issued a recall of two of its deli meats over concerns that they may contain milk, a common allergen that isn’t listed on its labels. In both cases, shoppers are urged to return the products to their nearest stores for a full refund. Moving across the Atlantic, Walmart will be competing directly with restaurants as it starts offering hot rotisserie chickens, in original and lemon pepper flavour, for same-day delivery to shoppers. In the past only cold chicken was available for delivery, and with the retailer selling as many as 103 rotisserie chickens every 60 seconds, one can see why it would want to attempt this move.
Comment: A little slow on the uptake there, Walmart? Our retailers have been delivering rotisserie chicken for yonks already. Or maybe they’re just ahead of their time.
MANUFACTURERS AND SERVICE PROVIDERS
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Smollan Data smart move
Global retail specialists Smollan have formalised a partnership agreement with business intelligence software provider Pyramid Analytics, that will see Smollan, via its data and technology business, DataOrbis, expanding its current service offering to include implementation of Pyramid Analytics’ proprietary software. The software consolidates data preparation, business analytics, and data science into a single platform that can be easily accessed by all levels of data users. According to Omri Kohl, Pyramid Analytics CEO, “Pyramid Analytics reduces the amount of time it takes users across the organisation to easily find the information they need without having to request it from IT. It’s a win-win for both users and overly stretched IT departments.” The partnership also provides DataOrbis with the opportunity to expand its services and footprint outside of the FMCG space where it has traditionally played.
Comment: Having the data is one thing, making it really work for a business is the game changer. For more on what will no doubt be a winning partnership for both businesses, read the article here.
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Tiger Brands The price of rice
Did you know that South Africa is the world's eleventh biggest rice importer? And that of all the rice destined for export in the world over the next year or so, 40% of it will come from India? Neither did we. Which is why the Indian government’s ban on exporting the fluffy white grain to protect itself from the effects of El Niño is cause for major concern for the likes of Tastic and Aunt Caroline owner, Tiger Brands, and indeed millions of South Africans who rely heavily on the staple. Although Tiger Brands imports its parboiled rice from Thailand, the business has already noted that rice prices have climbed due to the ban. The ban shouldn’t result in any significant shortages, but the Striped One does warn that price inflation may be on the cards – just when food inflation back home has started showing signs of easing. Russia’s withdrawal from the Black Sea grain initiative is not helping either, impacting food security on a global level.
Comment: We are truly at the mercy of everyone’s ups and downs in this globalised world of ours. Efforts behind going local are called for – goodness knows we have the resources to make it happen.
TRADE ENVIRONMENT
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The Economy In every cloud…
A slew of numbers and indicators have been released this past week, so let’s take a quick look at what they mean to us. First up, retail trade sales for June 2023 declined -0.9% year-on-year, marking the seventh consecutive month in the red although the result does point to a levelling out in real retail sales. The largest negative contributors to this decrease were general dealers at -2.7% and retailers in hardware, paint and glass at -4.4%. Food, beverages and tobacco in specialised stores, our own sub-sector, grew +1% while textiles, clothing, footwear and leather goods positively stormed through at +5.8%. So at least we’re looking smart while haggling for the cheapest can of baked beans at the shelf. Moving on, our unemployment rate dipped a little in Q2 – by 0.3 percentage points in fact – bringing the official rate ‘down’ to 32.6%. During this women’s month we must consider the unemployment rate for women in the labour force, which remains higher than the national average at 35.7%. And in better news, manufacturing production increased by +5.5% in June compared to a year ago, with nine of the ten manufacturing divisions reporting positive growth rates over this period.
Comment: A silver lining then. We’ll take what we can get.
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