Independent Food Independent Food Retailers. Sustainability in Retailers. Sustainability in

a changing a changing Retail Landscape?Retail Landscape?

Who are IFRs?

SA Retail Landscape•Total GDP - ±R2700bn*

•Unemployment = 37%?

•Total Consumer Spend (2010) - R605b**

•Total Food & Grocery Spend - R232.5b (38%)

•Electricity increases: ±25%***

•Fuel price (2003-2011) - ±275% increase* Source: International Monetary Fund**Source: Fernridge and Bank of America, Merill Lynch, June 2011***National Energy Regulator of SA

IFR - Research•Absence of Data & Statistics

•Customer Survey (214)

•23 SA Independent Food Retailers

•Successful Independent Retailers

•Industry Leaders, academics & analysts

Challenges Facing IFRs

Access to Finance

Lack of Government Support(Perception)

Lack of Skilled Labour &

Training

Rising Cost of Energy

Relevance of IFRs to

SA

Relevance of IFRs to SA•Small Business - 52% of GDP and 61% of

employment*

•1985-2005 = 73% employment growth

•Informal & Independent Retailers - R79.5b**

•22.5% total consumer spend at

informal/independent**

•Service 81% of households in SA

* Source: info.gov.za (Pocket guide to SA - 2010/2011)**Source: Fernridge and Bank of America, Merill Lynch, June 2011

Immersion & Retail VisitsImmersion & Retail Visits

The Concept of

Collaboration•Harmonisation

•Systemic Change

•Coordinated Effort and Approach

What Should IFRs Do?

Independent Food Retailers Independent Food Retailers Association of South AfricaAssociation of South Africa

Consolidation of Information & Resources

Opportunities(Technology,

new channels, new products)

Collaboration through size/scale

GovernmentEngagement

Sustainsocio-

economicconditions

ResourceFacility - Data

& Statistics

Culture & Community

ValuePreservation

MinimiseMonopolization

OrganiseOrganisedd

LabourLabour

ACADEMIAACADEMIA

OrganiseOrganisedd

BusinessBusiness

CategoryCategoryAssociationAssociation

ss

GovernmeGovernmentnt

CON-CON-SORTIUMSSORTIUMS

Stakeholder BenefitsStakehold

er

BenefitRetail Association

Organised Business

Government

Category Associations

Organised Labour

Academia

Consortiums

Increase & diverse membership

Broadened engagement

Accelerated implementation of key policies and initiatives

Increased Compliance

Sustained Job Creation

Creation of new

knowledge

Access to more retailers

How will it be

Resourced?

What’s in it for South

Africa?

What’s Next?

• Imitha lead the process

• Register through RASA

• Academic Research

• Approach government, consortiums and IFRs

• Market to industry

Independent Food Independent Food Retailers Association of Retailers Association of

South AfricaSouth Africa

Conclusion

Thank You.