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Articles in category: Retail & CPG/FMCG
The old assumptions driving supply chain design and strategy were focused on achieving the lowest possible cost of goods and the most efficient distribution to stores. Today, a new model is emerging, not driven by enterprise technology or supply chain innovations - but by customers. In the omnichannel retail world, almost every single store-driven assumption about supply chain is being challenged and getting replaced by a digital-driven future.(Read Full Article)
On 26 June 1974 - just over 40 years ago - a pack of Wrigley’s Juicy Fruit chewing gum became the first item to be scanned at a supermarket checkout, a year after the retail industry adopted the GS1 barcode as a unified standard for identifying and tracking products. Today, barcodes are still an integral retail technology and part of the high street experience.
According to GS1, the not-for-profit organisation that monitors demand chain standards, the barcode has created huge efficiencies in the supply chain, enabling 21 per cent shorter lead times for warehouse operators, 42 per cent lower costs for ...(Read Full Article)
CLOTHING chain Truworths International said it is committed to Nigeria and will not follow Woolworths out of Africa’s most populous nation.
The growth potential of the continent’s biggest economy outweighed high rental costs and difficulties in obtaining supplies, CEO Michael Mark said at the company’s headquarters in Cape Town on Thursday. "We were making losses, but I don’t think we will in the future."
He said that the retailer planned to reduce the size of its four stores in Nigeria to cut costs and will also reconsider the type of clothes for sale to appeal more ...(Read Full Article)
WOOLWORTHS Holdings has dangled a R4bn carrot to entice billionaire investor Solomon Lew to support its proposed R23bn acquisition of Australian retailer David Jones.
On Tuesday Woolworths offered to pay A$17 ($15.95) a share for the Country Road stock it does not already own in a last-ditch bid to rescue its audacious move to buy the struggling department store chain, David Jones. Woolworths owns 88% of Australian Country Road.(Read Full Article)
SPENDING a week recently in the US city of Bentonville, Arkansas, to attend Walmart’s shareholders’ meetings, underscored why the company’s investment in South Africa three years ago when it bought a majority stake in Massmart (which I now chair) was a resounding vote of confidence in South Africa that ought to be leveraged to the maximum.
To give a sense of what the investment meant, consider that Walmart is the largest single company on the planet.(Read Full Article)
There is a common complaint about admirals and generals—that they are always fighting the last war. Based on the results of a global survey of retail CEOs conducted earlier this year by PricewaterhouseCoopers, the same might be said for these retail generals—they are trying to win the war for the consumer’s wallet with tactics from the past. But those battles are in the history books. The new war is being waged to win over the empowered consumer, and the old tactics won’t work.(Read Full Article)
Claims last week that food giant Mars UK is trying to cover up doubling its payment times for suppliers has again highlighted the problem of late payments. The Forum of Private Business (FPB) said the food manufacturer is the latest company to introduce a supply chain finance scheme, or a “cover for extending payment times”, and suggested Mars UK could be placed in its late payment hall of shame.(Read Full Article)
Global brewer SABMiller announced a new cost-savings target on Thursday to help cushion it against difficult trading in a range of markets, sending its shares higher as investors anticipated a consequent boost to earnings.(Read Full Article)
The maker of Miller Lite and Peroni beers is struggling to grow in Europe and North America - like many consumer goods companies - and new revenues from an emerging middle-class in developing markets have been dented by weak currencies in many of those countries of late.
Retailers should put their own checks in place when sourcing from other countries and not blame governments for a lack of regulation, says Tesco’s group director of ethical trading.
According to Giles Bolton: “It is not impossible if you are a responsible retailer - regardless to what else is going on in the industry - to make sure you are sourcing responsibly.”
He added companies should not blame governments for not doing enough in terms of regulation. “If you want to trade from that country the responsible thing to do is to make sure that you have your own systems in ...(Read Full Article)
Australian retailer David Jones has agreed to a takeover by Woolworths that values the company at US$1.9bn. Woolworths [JSE:WHL] has offered R21.4bn to acquire the entire issued share capital of Australian retailer David Jones for AUS$4.00 per share. The offer represents a 25.4% premium to the closing David Jones share price on April 8 2014.(Read Full Article)
The David Jones board of directors has unanimously recommended that its shareholders vote in favour of the transaction. The combination of Woolworths and David Jones will create a retailer with revenue of over R51bn from 1 151 stores ...
A recent report by Spectrum Insight used social media to analyse the “winners and losers” of the festive season according to social media feedback. The results demonstrated that getting logistics – the ‘home stretch’ of the retail buying process – wrong, can prove even more disastrous for retail brands than errors at the beginning of the process.
Retailers that outsource their logistics seemingly have little control over the treatment of their parcels once they leave the warehouse, yet it is the retailer’s brand that bears the brunt of the damage resulting from late, lost or damaged goods.(Read Full Article)
Zara, owned by the Spanish giant retailer, Inditex, is opening a new store in Cresta, Johannesburg. This move confirms ATKearney’s report last week on its 2014 Retail Development Index in Africa. While countries such as Ethiopia, Kenya and Rwanda are attracting more local retail development, South Africa is being sought out by international retailers.
In the report, South Africa was described as the most established retail market on the continent. It also has more consumer spending power, after retail sales increased by an average of 3 percent a year between 2005 and 2012.
Underdeveloped supply chains in Africa differ widely across countries and are a major challenge for retailers looking to move into the continent.
That’s according to Bart van Dijk, partner at AT Kearney and co-author of the African Retail Development Index, a new study designed to help retailers determine where and how to best enter Sub-Saharan Africa’s growing retail market. Rwanda, Nigeria, Namibia, Tanzania, and Gabon occupied the top five positions on the index.
“There are wide differences in infrastructure and supply chain development across African countries,” said Dijk(Read Full Article)
South African retailer Shoprite on Thursday opened its first outlet in northern Nigeria, as part of an aggressive expansion drive and defying wider concerns about security in the region.
The store in Kano Ä the north's largest city and main commercial hub Äis situated in the new $110-million (80-million-euro) Ado Bayero Mall that has taken three years to construct and claims to be Nigeria's biggest.
Hundreds of upper and middle class Nigerians thronged the mall as it opened its doors. Private security guards searched vehicles for weapons and explosives and armed police kept watch on shoppers(Read Full Article)
Tesco, the world's third-largest retailer, expects to source more clothes from Ethiopia, but wants the nascent industry there to uphold high ethical standards as global chains seek to prevent factory disasters like those seen in Bangladesh.
"Ethiopia is a very exciting potential country to grow a supply chain but needs to grow up to be a well regulated, ethical new industry," Giles Bolton, ethical trading director at Tesco, told the Retail Week Live conference on Wednesday.(Read Full Article)
Hope and a brighter future are on the horizon for the clothing and textile industry. In a national executive committee meeting of the Southern African Clothing and Textile Workers’ Union (Sactwu) last week, it was revealed that the industry continued to stabilise with a slowdown in job losses.
The union said the number of jobs lost had declined by 66 percent between a 12-month period in 2010 and the corresponding period in 2013.
Wal-Mart Stores, famed for its low prices, has stumbled in the one major market where consumers say price is less of a driver in their buying decisions: China.
There, consumers say they want food that is safe and authentic, and, after 17 years, Wal-Mart is changing its approach, closing some big-box stores that never quite caught on with locals. Instead, it's focusing on private-label products and imports, putting its stamp on quality and safety.
“We're closing some stores because we got enamoured with growth,” said Raymond Bracy, head of corporate affairs at Walmart China. “We're not going ...(Read Full Article)
A major downside to online shopping as opposed to shopping in store is the delay between ordering and receiving purchases. In a physical store, the customers can see the items they wish to buy, choose them and then take them away home with them. On the other hand, for online purchases, the delay between order and delivery may dissuade customers from buying items. The major online retailer, Amazon, has been worrying about this potential barrier to online sales for a while.(Read Full Article)
As a slowdown in emerging markets takes the shine off shares in consumer goods makers such as Nestle, Unilever, Danone and Procter & Gamble, hungry investors have been sampling more of the companies that supply them.
Scent and flavour makers such as Symrise, Givaudan and International Flavours & Fragrances (IFF), and food ingredient names such as Glanbia and Kerry Group are attractive, analysts say, because they are more resistant to weak consumer spending and benefit from health and wellness trends forcing so many brands to modify their products.(Read Full Article)
The world's top mobile infrastructure supplier Ericsson is betting that the fast-growing African mobile broadband market will remain dominated by 3G services over the next years as the newest 4G smartphones remain too expensive for local consumers.(Read Full Article)
Africa's rapid telecoms expansion has come to symbolise the continent's economic growth, with the World Bank estimating a 10% increase in broadband coverage could add 1.4 percentage points to economic output.
In a world of shopping centres, high street retailers and an abundance of online options, the consumer has unhindered exposure to the best deals on that much-desired TV or this season’s dress. Not only this, the consumer is no longer faced with the lack of a size 10 dress, as the floor manager will reveal her iPad, providing multiple options of where you can purchase the dress today, or giving you the option to take delivery at home tomorrow.(Read Full Article)
As part of our Expert Insight series, Supply Chain Nation recently sat down with Gordon Wade, chief executive officer and director of best practices for the Category Management Association. In Part I of our conversation with Gordon, he discuss the key markets shifts that are increasing complexity in the supply chain – and that retailers and manufacturers must address in 2014.(Read Full Article)
Despite variable economic conditions, the natural personal care market continues to see strong growth, posting a healthy 10.6% increase globally to reach USD 29.5 billion at the manufacturers' level in 2013. Brazil and particularly China are the fastest-growing natural personal care markets, with sales in China increasing nearly 24% in 2013 and slowly challenging the United States' global market share, according to recently published Natural Personal Care: Global Market Brief by worldwide consulting and research firm Kline & Company.
Growth within mature markets, driven by the large number of brands present in the regions competing on products, price, and ...(Read Full Article)
Don’t yawn. This is a life-and-death issue for small businesses. Anyone who has worked in or around a supplier to a big consumer company—to a supermarket chain, for example—knows the value of information on shoppers’ preferences. If a supplier can use consumer data to shape its offerings and marketing strategies, it has a significantly better chance of survival than its data-deprived competitors.(Read Full Article)