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Articles in category: Retail & CPG/FMCG
EACH year Pick n Pay procures about R40bn of fresh-food products from South African suppliers, David North, the group executive of strategy and corporate affairs at the retailer, said on Wednesday.
Retailers are constantly striving for balance between having world-class global offerings without compromising local procurement responsibilities. Like consumers elsewhere in the world, South African customers prefer to buy a food product if it is produced locally.(Read Full Article)
Supply chain professionals are "masters of the universe" because of the growing importance of their role in firms, says Huw Waters, supply chain director at Procter & Gamble.(Read Full Article)
FAMOUS Brands has delivered an 18% rise in headline earnings per share to (HEPS) 212c in the six months to August, boosted mainly by its logistics and manufacturing operations and improved efficiencies.
The fast food group said on Monday that revenue was up 14% to R1.57bn from the year-earlier period, with operating profit up 19% to R303m.
The company said while the front-end franchised operation delivered a satisfactory performance — reflecting reduced consumer spend across certain mainstream brands — the back-end logistics and manufacturing businesses made a significant contribution to the group’s overall results(Read Full Article)
There is a massive opportunity in South Africa for logistical and transport companies dealing with fast moving consumer goods (FMCG), according to Nicholas de Canha, CEO of Imperial Fleet Management.
“The transportation of fast moving consumer goods has experienced a significant growth of late in South Africa and Africa."
In South Africa, for instance, imports of containers into Durban ports increased by 5% in 2013. Most of the imports into Gauteng are consumer goods.
"While a fair amount of investment is being made by various stakeholders to upgrade the country’s rail networks to be sufficient to meet future demand,(Read Full Article)
Commission finds no evidence of anticompetitive conduct from exclusive supply agreements between Aspen Pharmacare, Mylan Inc and its affiliates(Read Full Article)
Professor Chris Elliott’s long-awaited review of the food industry, which was commissioned in the wake of the horse meat scandal, is expected to be published imminently. Based on the review’s interim findings published last December, Elliott is likely to recommend the introduction of a new requirement for all parties operating or managing the food chain to put consumers’ interests first over all other aims and for laboratory services to use standardised, validated methodologies for inspecting food. Having previously warned that the sector is a “soft touch for criminals,” the review is also expected to call for the creation ...(Read Full Article)
Public benefit organisation Boycott, Divestment and Sanctions in South Africa (BDS SA) on Monday vowed to step up its protest action against Woolworth for "refusing to resolve the issue of the company trading with Israel".
This comment by BDS SA's Kwara Kekana follows protest action on Saturday, which led to the temporary closure of the Woolworths store in Rosebank, Johannesburg. The protest there included a flash mob outside the store and the distribution of pamphlets on why shoppers should boycott Woolworths.(Read Full Article)
It means that the hundreds of thousands of farms that supply Nestlé with its dairy, meat, poultry and eggs will have to comply with tighter animal welfare standards. Nestlé said it is the first major food company to form an international partnership with an animal welfare NGO.(Read Full Article)
DISTELL Group has earmarked more than R500m for investments into various African countries and it will partly fund the war chest through a cost saving and supply chain efficiency programme, the liquor group said on Monday.
Meanwhile, it announced that group revenue from Africa outside South Africa grew 20% in its year to June, helping overall revenue rise 12.8% to R17.7bn.
The weaker rand and the first full contribution from Scotch whisky business Burn Stewart Distillers, bought last year, also boosted revenue.(Read Full Article)
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)