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CORPORATE INTELLIGENCE THE REPORT SEPTEMBER 2020 START YEARS OF DOING GREAT THINGS RETAIL INDUSTRY
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Walmart Launches New Membership Service to Rival Amazon PrimeRetail giant Walmart officially launched a new rival to Amazon Prime, with its new annual membership service, Walmart+. This service will provide shoppers with free delivery of groceries, as well as various other perks. (1 September 2020)
Amazon Gets FAA Approval for Drone Delivery In August 2020, Amazon received a critical certificate from the Federal Aviation Administration (FAA), bringing the company a step closer to launching its new drone delivery service in the United States. This FAA approval means that Amazon is now in possession of a Part 135 air carrier certificate, which must be held before a company can begin drone delivery services. (31 August 2020)
New Global Retail Report Highlights Industry Changes Amidst COVID-19 A new global report, titled “The Future of Retail: Opportunities for brands in the New Normal”, highlights various challenges and opportunities for retailers, as the COVID-19 pandemic continues to drive permanent shifts in consumer behaviour. (12 August 2020)
E-Commerce Rise Triggers Major Warehouse Space Investment According to Estelle Meiring, Paragon Group Director, the COVID-19 pandemic has given rise to a spike in online sales, which is expected to fuel the unparalleled growth in e-commerce operations in SA’s retail sector. This is expected to trigger major investment in warehousing space, with a rise in on-demand warehousing and prime land for development. (2 September 2020)
Women Hold Buying Power in SA’s Retail Market Research has found that, although gender inequality is still rife in SA, women hold the buying power in most South African households, shaping the overall retail market. The importance of factoring in female influence is vital in marketing campaigns and products, so that businesses can harness this buying power. (25 August 2020)
2020 Winners Announced for the Sunday Times Gen Next Awards On 21 August 2020, the winners of the 16th annual Sunday Times Gen Next Awards, were announced online. The winners span across 71 different categories, providing a snapshot of South African youth brand preferences, including leading retailers. (21 August 2020)
Refinery Has Entered the Online SpaceLocal fashion brand, Refinery, is the Pepkor Group’s first brand to enter the online space, with the launch of its online store. This online store is addressing the style needs of the company’s on-trend customers, whilst providing an easy and safe platform to use. (26 August 2020)
Pep is Mixing it Up with a New Brand Identity The largest single brand clothing retailer in Africa, Pep, has announced the implementation of its new brand identity, after 55 years in the industry. This new brand identity will go beyond just a logo change and, instead, be a bold statement of the group’s confidence in the future of Pep in South Africa. (24 August 2020)
Game Launches Stylessentials Clothing Range As part of Game’s turnaround strategy, the retailer has launched a clothing range, Stylessentials, which will replace Game’s Fresh and Frozen offerings in all 122 stores in SA by July 2021. This launch comes, in response to customers actively seeking value alternatives for essential items, such as clothing, amidst turbulent economic times. (13 August 2020)
Cashbuild LimitedAccording to Cashbuild Limited’s annual results and dividend declaration for the year ended 28 June 2020, the group reported a tough trading environment, with revenue decreasing by 7% to reach approximately R10.1 billion in 2020. The group believes that the trading environment will continue to be challenged by the weakened national economy, which will continue to impact customer’s disposable income. (1 September 2020)
Massmart Holdings LimitedAccording to Massmart Holdings Limited’s reviewed interim results for the 26-week period ended 28 June 2020, the group reported a tough trading environment, with total sales decreasing by 9.7% to reach R39.6 billion. The group expects the unpredictable operating environment, and negatively impacted economy to continue, due to the impact COVID-19 has had. (27 August 2020)
Mr Price Group LimitedAccording to Mr Price Group Limited’s trading update for the 20 weeks ended 15 August 2020, the group performed well, despite a challenging trading environment. The group’s online sales increased significantly by 75% post lockdown, which is higher than in the week of “Black Friday” in 2019. The group is expecting the challenging environment to continue for the next 12 to 18 months. (20 August 2020)
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PnP Clothing Collaborates with Local DesignersPick n Pay (PnP) Clothing, in association with Atelier Gavin Rajah, has launched its new Futurewear project to provide mentorship to emerging local fashion designers. This project will offer local fashion talent the chance to launch their business with an exclusive collection, in collaboration with PnP Clothing. (1 September 2020)
Retailability to Purchase Parts of Edgars Retailability Pty (Ltd), the Durban-based retail competitor, is purchasing parts of Edgars after an agreement for the sale has been signed for an undisclosed amount. This agreement has been a positive step towards meeting Edcon’s business rescue plan objective, to save a significant number of jobs and the continuation of the well-known Edgars brand. (25 August 2020)
TFG Concludes Agreement with Edcon to buy Selected Jet AssetsFoschini and Markham owner, TFG, has reached an agreement with Edcon for the purchasing of select Jet assets in SA, totaling R480 million. This agreement includes TFG purchasing 371 stores, and some assets of Jet, from embattled Edcon and its business rescue practitioners. (18 August 2020)
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Yethu Delivery App to Ease Grocery Delivery to Townships A new app, Yethu, has rolled out its pilot in Soweto, which will see areas currently underserved by traditional grocery services being able to order groceries and have them delivered to their doors via a mini-bus taxi. In addition, the successful acquisition of strategic partnerships with Pick n Pay, FutureLife, and Tyme Bank has been made. (26 August 2020)
New UBU International Platform Launched in SA SA is the first region to benefit from the newly launched white-label mobile, customer loyalty, and rewards programme platform, UBU International. This platform-based ecosystem, converts the substantial power of mobile search for products and services, into traffic in both local physical and digital retailers. (26 August 2020)
G-Tech Leather Technology Used in Grasshoppers’ New Tint Range On Monday 24 August 2020, Grasshoppers launched its new footwear collection, the Tint range. This range incorporates new G-Tech leather technology, which includes three different scientific technology processes, whilst still honouring the heritage of the signature moccasin style. (25 August 2020)
Clicks’ Digital Vouchers are Helping Those in NeedClicks has launched a new digital voucher system to help those in need, especially during difficult times in SA. The new voucher system makes it easier to send money for essential items, to those in need, with customers being able to send vouchers directly to someone’s cell phone within minutes. (28 August 2020)
Ackermans Donates to Women with a CauseIn celebration of Women’s Month, leading value retailer, Ackermans’ Faces of Change campaign has donated R50 000 to five South African women, to help them continue their work within communities. Ackermans initially launched its Faces of Change campaign in June 2020, to recognise the overlooked, phenomenal women of SA. (19 August 2020)
The Body Shop’s #IsolatedNotAlone Campaign Fight Against Domestic ViolenceIn the fight against domestic violence, which has been bolstered by COVID-19, The Body Shop launched its #IsolatedNotAlone campaign, which calls on South Africans to show their support to those who are abused, by sharing the hashtag. (11 August 2020)
OHSAS 18001 Migrates to SANS/ISO 45001 The international standard for Occupational Health and Safety (OHSAS) has been replaced with SANS/ISO 45001: Occupational Health and Safety Management System Standard. This migration was discussed in a webinar, hosted by the South African Bureau of Standards (SABS) in August 2020, providing an overview of the changes and the deadline for parties to migrate. (21 August 2020)
Call for Better Food Price Controls in SA The COVID-19 pandemic has highlighted the country’s poor food system, including food price controls. As such, there has been a call for a renewed list of price limits to be put in place to cap prices, along with a call to broaden the list of items subject to the price monitoring regime. (14 August 2020)
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WALMART LAUNCHES NEW ANNUAL MEMBERSHIP SERVICE TO RIVAL AMAZON PRIME
AMAZON GETS FAA APPROVAL FOR DRONE DELIVERY
NEW GLOBAL RETAIL REPORT HIGHLIGHTS INDUSTRY CHANGES AMIDST COVID-19
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GLOBAL NEWS
1 September 2020Retail giant Walmart officially launched a new rival to Amazon Prime, with its new annual membership service, Walmart+. This service will provide shoppers with free delivery of groceries, as well as various other perks.
Walmart decided to take on Amazon Prime through the launch of Walmart+. This decision has been in the works for some time, with the company originally planning to launch Walmart+ earlier this year, but the process was delayed as a result of the COVID-19 pandemic.
Although delayed, the membership programme is now set to launch on 15 September 2020, with the programme costing members US$98 a year or US$12.95 per month. This is in contrast to Amazon Prime, which currently costs US$119 a year or US$12.99 a month.
The Walmart+ programme focuses on the concept of free delivery of food and other items from nearby stores, which will operate on a same-day delivery concept. The programme will also offer various other benefits, with the company planning to expand this list of perks in the near future. Other perks currently included, include a discount on gas at the company’s stations and the ability for members to pay by mobile phone to skip checkout lines at stores.
With many Walmart shoppers already being subscribed to Amazon Prime, it is unclear how many of these shoppers will be willing to shift to Walmart+, or if they will be willing to pay for both services. However, Walmart claims that its biggest appeal is its massive grocery business that often tends to offer cheaper prices.
31 August 2020In August 2020, Amazon received a critical certificate from the Federal Aviation Administration (FAA), bringing the company a step closer to launching its new drone delivery service in the United States. This FAA approval means that Amazon is now in possession of a Part 135 air carrier certificate, which must be held before a company can begin drone delivery services.
This approval is the third of its kind amongst drone delivery companies, with UPS and Wing, a subsidiary of Google’s parent company Alphabet, both receiving their certification last year.
As part of Amazon’s application for the certificate, the company had validated more than 500 safety and efficiency processes, with this certification an important step in the launch of this service.
Although the plans to use drones to make deliveries in 30 minutes or less has long been in the pipeline for Amazon, this approval forms part of a larger picture, which encompasses their readiness for drone delivery.
Whilst the technology for widespread use of drone delivery is not yet ready, and the FAA is yet to develop the regulations needed for widespread drone use, Amazon will continue to develop and refine its technology to fully integrate delivery drones into the airspace.
As such, Amazon has indicated that it will use this approval to begin testing deliveries but has declined to state when and where the tests will take place.
12 August 2020A new global report, titled “The Future of Retail: Opportunities for brands in the New Normal”, highlights various challenges and opportunities for retailers, as the COVID-19 pandemic continues to drive permanent shifts in consumer behaviour.This report, released by customer engagement platform Braze, assesses the impact of the pandemic on the global retail industry and consumer behaviour. Amongst other findings, the report has shown that the ongoing pandemic has brought about permanent changes, in how and where consumers shop. The report has shown that 26% of global consumers tried at least one new brand during the pandemic, with 95% reporting intentions of buying from one of these new brands again, in the future.Moreover, although the rise in digital and mobile channels during the peak of the pandemic comes as no surprise, 83% of consumers indicated that they intend to shop online either the same amount or more, despite physical stores reopening. The report has also found that it is no longer just about brand familiarity, but that brand values and corporate empathy will play an increasing role in consumer loyalty and buying behaviour, with only 10% of consumers considering “familiarity” as a top factor when deciding where to shop. This contrasts with the 91% who indicated that, how a company treats its employees and customers during the pandemic, is an important criterion.
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E-COMMERCE RISE TRIGGERS MAJOR WAREHOUSE SPACE INVESTMENT
WOMEN HOLD BUYING POWER IN SA’S RETAIL MARKET
2020 WINNERS ANNOUNCED FOR THE SUNDAY TIMES GEN NEXT AWARDS
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2 September 2020
According to Estelle Meiring, Paragon Group Director, the COVID-19 pandemic has given rise to a spike in online sales, which is expected to fuel the unparalleled growth in e-commerce operations in SA’s retail sector. This is expected to trigger major investment in warehousing space, that will also see a rise in sustainability, on-demand warehousing, and prime land for development.
With e-commerce generally requiring three times the logistics space of traditional storefronts, the country will see a much greater investment in warehouse space, to support rising e-commerce demands due to COVID-19.
Moreover, the company has seen a strong move towards warehouse sustainability during the period, especially in terms of the installation of photovoltaic panels, to reduce the reliance on external power and cut costs over time.
In addition, it is predicted that even SA’s larger retailers will need immediate space for both slow and fast-moving goods, while they assess their long-term distribution plans. As such, on-demand warehousing is another emerging trend being witnessed during the pandemic, which sees services and space acquired on a “pay-per-use” basis. This method gives retailers more choice and flexibility over location, costs, and suppliers, allowing retailers to skip long-term leases during a period of inventory fluctuation and uncertainty.
Furthermore, given that the Cape Town market still has prime vacant land for the development of large distribution warehouses in close proximity to the airport, there will be a rise in demand for prime land for development.
25 August 2020
Research has found that, although women inequality is still rife in SA, women hold the buying power in most South African households, shaping the overall retail market. As such, the importance of factoring in female influence is vital in marketing campaigns and products, so that businesses can harness this buying power.
Despite women being more likely to be unemployed and earn less than their male counterparts, when it comes to buying power in SA, women come out on top. While this trend is true in many other countries as well, it is particularly relevant in SA, with an estimated 38% of females heading households in the country.
As a result, smart marketing campaigns and products developed with women in mind, is of increasing importance to retailers and has the potential to benefit both businesses and consumers.
Furthermore, a study by Nielsen has shown that 80% of women purchase mostly from supermarkets, with an average spend of R220 per visit and an average of five different stores being visited. These spending habits show that despite earning less than men, women typically spend more in numerous categories.
This further highlights the importance of involving women in the marketing of products, as well as ensuring that women are top of mind when developing products and marketing campaigns, in order to secure their substantial market share.
21 August 2020
On 21 August 2020, the winners of the 16th annual Sunday Times Gen Next Awards, were announced online. The winners span across 71 different categories, providing a snapshot of South African youth brand preferences, including leading retailers.
The Sunday Times Gen Next survey, which is based on research conducted by Yellowwood, has established itself as the leading barometer of what South African youths find trendy and aspirational. The findings deliver key insights for brand managers, advertising and marketing professionals.
Various retailers made the list of winners in several categories, including Clicks, which was announced as the winner of the Coolest Specialist Health, Beauty, & Accessory Stores category, whilst Woolworths Food was the winner of the Coolest Grocery Stores category.
Numerous other retailers featured, including Sportscene as the winner of the Coolest Clothing Store category and Takealot winning the Coolest Online Fashion Store/App category.
Moreover, Game topped the Coolest Stationery Store category, whilst Toys R Us was the winner of the Coolest Toy Store category. Finally, in terms of malls in SA, the Mall of Africa won the Coolest Shopping Mall category.
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REFINERY HAS ENTERED THE ONLINE SPACE
PEP IS MIXING IT UP WITH A NEW BRAND IDENTITY
GAME LAUNCHES STYLESSENTIALS CLOTHING RANGE
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26 August 2020
Local fashion brand, Refinery, is the Pepkor Group’s first brand to enter the online space, with the launch of its online store. This online store is addressing the style needs of the company’s on-trend customers, whilst providing an easy and safe platform to use.
The online store was designed with a fresh and modern look, with technology being utilised to make it easy and safe to use. Furthermore, the online store is focused on young South African adults, with its look representing just that in terms of the overall look and feel.
Moreover, the online store hosts the full range of Refinery’s men and women items, as well as having online-exclusive items available. Customers will be able to order items from the online store, which is available on the company’s website, and will receive their delivery within two to five days. Delivery is currently only available in SA and will cost R50, or customers can get free delivery when they make a purchase for R450 or more.
According to Shaun Hoddy, Chief Executive Officer of Refinery, the online store will further build on its relationship with its tech-savvy customers, who desire a secure and convenient shopping experience. Additionally, the online selling capability will also address the needs of its on-the-move customers, by providing an easily accessible shopping experience.
24 August 2020
The largest single brand clothing retailer in Africa, Pep, has announced the implementation of its new brand identity, after 55 years in the industry. This new brand identity will go beyond just a logo change and, instead, be a bold statement of the group’s confidence in the future of Pep in South Africa.
During extensive customer research, Pep concluded that it needs a brighter direction which appeals to the forward-thinking, savvy customer, whilst still appealing to their loyal customer base.
As such, in mid-August 2020, Pep launched this new look, which was spearheaded by Superunion Africa, a division of Ogilvy SA.
The new look will be rolled out in a phased and systematic manner, across more than 2 350 stores, which includes every touchpoint across Pep, Pep Cell, and Pep Home.
The brand relaunch will include the revision of the full suite of internal and external branded collateral, new store signage for all store formats, in-store elements, digital, and social touchpoints, as well as consulting on the flagship store format.
Beyers van der Merwe, Pep’s Marketing Executive, emphasised that the group is not changing who they are, in terms of convenience and being the retailer with the lowest prices. He also added that the group will stay true to its Sikhula KunYe (growing together) culture, as it remains central to how they do things.
13 August 2020
As part of Game’s turnaround strategy, the retailer has launched a clothing range, Stylessentials, which will replace Game’s Fresh and Frozen offerings in all 122 stores in SA by July 2021. This launch comes, in response to customers actively seeking value alternatives for essential items, such as clothing, amidst turbulent economic times.
According to Game’s Vice President, Andrew Stein, the group has identified a gap in the market for casual wear, that is seasonally relevant and keeps the South African consumer in mind, whilst taking into account customer feedback and market trends.
Currently, the Stylessentials range is available at 22 Game stores across the country, with the aim to add it to their online offering soon. The range will include casual wear basics including t-shirts, shorts, vests, jeans, and athleisure for ladies and men, while the children’s range will include clothing items featuring popular movies and cartoon characters. Additionally, essential items like underwear and socks will also be included.
The Stylessentials range is produced by local suppliers and manufacturers, where possible, to ensure that the ranges are appealing and designed for the South African consumer.
Currently, 90% of the range is sourced from local suppliers, while approximately 25% of the range is manufactured locally. However, Game is working towards increasing the percentage of locally manufactured items, to support local small businesses.
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CASHBUILD LIMITED MASSMART HOLDINGS LIMITED
MR PRICE GROUP LIMITED
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1 September 2020
According to Cashbuild Limited’s annual results and dividend declaration for the year ended 28 June 2020, the group reported a tough trading environment, with revenue decreasing by 7% to reach approximately R10.1 billion in 2020.
In terms of stores that had been established before July 2018, revenue decreased by 10%, while the 22 new stores witnessed an increase of 3% in revenue during the same period.
In addition, gross profit for the group decreased by 7%, while the gross profit percentage decreased from 25.1% to 25%. This financial performance was achieved during tough trading conditions brought on by COVID-19, with a selling price inflation of 2%.
Basic earnings per share decreased significantly by 37%, while headline earnings per share decreased by 40% from the previous year. In contrast, cash and cash equivalents increased to approximately R2 billion, which can be attributed to payments to suppliers that were affected after the current year-end, along with the reduction in stock levels in the current year.
Furthermore, operating expenses, including new stores, was well controlled and decreased by 7%, which resulted in operating profit also decreasing by 7%.
The group’s management believes that the trading environment will continue to be challenged by the weakened national economy, which will continue to impact customer’s disposable income.
27 August 2020According to Massmart Holdings Limited’s reviewed interim results for the 26-week period ended 28 June 2020, the group reported a tough trading environment, with total sales decreasing by 9.7% to reach R39.6 billion. The tough trading environment can be attributed to the COVID-19 pandemic, and its associated restrictions put in place by the government, to help curb the spread of the virus. As such, sales were significantly impacted and resulted in a decrease of approximately R4.2 billion in 2020, compared to the same period in the previous year. In addition to the decrease in revenue, the group reported a trading loss of R266.6 million in 2020.In terms of its turnaround plan, the group will continue to drive its cost reset strategy to mitigate losses, which has resulted in operating expenses increasing by a mere 1.9% over the prior-year period. In contrast to this, the group reported a significant increase of 39.6% in basic earnings per share (EPS), which increased from 382.8 cents in 2019 to 534.2 cents in 2020. Moreover, the group has experienced an increase in gross margin of 90bps to 20.1% from June 2019. This increase, is the result of the group increasingly focusing on optimising its product and promotional mix, along with a shift toward the everyday low price (EDLP) proposition. The group expects the unpredictable operating environment, and negatively impacted economy to continue, due to the impact COVID-19 has had. However, the group is confident that it will be able to navigate through this, similar to the first half of the year.
20 August 2020According to Mr Price Group Limited’s trading update for the 20 weeks ended 15 August 2020, the group performed well, despite a challenging trading environment. The group’s online sales increased significantly by 75% post lockdown, which is higher than in the week of “Black Friday” in 2019.Despite the challenging environment brought on by COVID-19, the group’s performance exceeded initial expectations, with the group’s rolling annual market share reaching its highest level in the last 14 months to June 2020. This can be attributed to the group’s everyday low price and fashion-value model, which has enabled customers to find value amidst challenging times. In terms of post lockdown divisional performance, Sheet Street experienced growth of 18.4%, while Mr Price Home grew by 8.3%, and Mr Price Apparel grew by 4.2%. In contrast, Mr Price Sport and Miladys decreased by 3.3% and 17.6%, respectively, during the post lockdown period. In terms of the group’s total sales (including Cellular – handsets and accessories), the group experienced a decrease of 19.2% in 2020, compared to the same 20-week period in 2019. Furthermore, total sales for the Apparel and Home segments decreased by 22.2% and 15%, respectively, in the period under review. The group is focused on dealing with the extreme volatility which is likely to continue for the rest of FY21, with uncertainty being added with the recent move to level two lockdown. As such, the group is expecting the challenging environment to continue for the next 12 to 18 months.
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PNP CLOTHING COLLABORATES WITH LOCAL DESIGNERS
RETAILABILITY TO PURCHASE PARTS OF EDGARS
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1 September 2020
Pick n Pay (PnP) Clothing, in association with Atelier Gavin Rajah, has launched its new Futurewear project to provide mentorship to emerging local fashion designers. This project will offer local fashion talent the chance to launch their business with an exclusive collection, in collaboration with PnP Clothing.
The Futurewear project was established after the positive response received on the series of limited-edition collections, which PnP Clothing launched in August 2020. These collections were based on collaboration, and 12 months of planning, between young designers and Gavin Rajah.
PnP Clothing x Julia, the retailer’s first collection in the series, was highly successful and almost sold out in less than a month after the initial launch. The next collaboration, with Katekani Moreku, who creates colourful prints and hats by upcycling textiles, will launch in mid-September.
As an extension to this series, the Futurewear project encourages local designers and creatives older than 18, to submit their profiles to be considered for this mentorship programme. This programme aims to nurture talent and provide young designers with support, through PnP Clothing and Gavin Rajah.
PnP Clothing General Manager, Hazel Pillay, indicated that they are excited to expand this project as it enables the company to support local talent, as well as local suppliers who produce the garments. Additionally, this collaboration also provides PnP Clothing customers access to affordable designer clothing.
25 August 2020
Retailability Pty (Ltd), the Durban-based retail competitor, is purchasing parts of Edgars after an agreement for the sale has been signed for an undisclosed amount. This agreement has been a positive step towards meeting Edcon’s business rescue plan objective, to save a significant number of jobs and the continuation of the well-known Edgars brand.
Retailability is the holding company of well-known fashion brands such as Legit, Style, and Beaver Canoe, with more than 460 stores across SA, Namibia, Lesotho, Botswana, and eSwatini.
According to Edcon’s business rescue practitioners, they are pleased with the signing of an agreement, as it is an indication of confidence in the Edgars business. Additionally, this agreement will also further bolster Retailability’s already established blue-chip retail expertise.
As such, Retailability plans to utilise this acquisition to ensure growth and continuity of the proudly South African brand, by utilising Edgars’ unique value proposition and large target market.
Retailability and Edcon are aiming to have the transaction wrapped up in September 2020, with the transaction currently being subject to a variety of precedent and regulatory approvals, which includes the Competition Authorities. However, the parties are currently preparing the signing of the sale and purchase agreements, for the Edgars business in the rest of Africa.
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TFG CONCLUDES AGREEMENT WITH EDCON TO BUY SELECTED JET ASSETS
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18 August 2020Foschini and Markham owner, TFG, has reached an agreement with Edcon for the purchasing of select Jet assets in SA, totaling R480 million. This agreement includes TFG purchasing 371 stores, and some assets of Jet, from embattled Edcon and its business rescue practitioners. This comes after TFG announced in July 2020, that it had agreed to buy select Jet assets from Edcon, with the group announcing that an agreement was reached in mid-August 2020. This agreement was made principally on the same terms set out in the conditional offer, with similar agreements for stores in Botswana, Namibia, Lesotho, and the kingdom of eSwatini expected to be finalised shortly. The TFG and Jet transaction is currently subject to various conditions, such as the approval from Competition Authorities, an agreement with RCS Cards, and lease renegotiations with Jet landlords. However, given the progress of the transaction, it is believed that the transaction will be wrapped up by the end of September 2020. According to TFG, with Jet being a leading South African retailer in both brand recognition and market share, this acquisition will further enhance the company’s strategy to expand into the value segment of the retail apparel market, in the Southern African region.
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YETHU DELIVERY APP TO EASE GROCERY DELIVERY TO TOWNSHIPS
NEW UBU INTERNATIONAL PLATFORM LAUNCHED IN SA
G-TECH LEATHER TECHNOLOGY USED IN GRASSHOPPERS’ NEW TINT RANGE
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26 August 2020
A new app, Yethu, has rolled out its pilot in Soweto, which will see areas currently underserved by traditional grocery services, being able to order groceries and have them delivered to their doors via a mini-bus taxi.
According to Vuyo Radebe, Director of Yethu, the app utilises the power of the taxi industry, which has become an integral part of the lives of those in townships. This will save them time and money, while allowing taxi drivers to increase their earnings.
Currently, approximately 2 000 customers have engaged with the service, with 7 000 taxis being made available across the taxi associations. In addition, the successful acquisition of strategic partnerships with Pick n Pay, FutureLife, and Tyme Bank has been made.
In terms of the app, anyone from rural and township households can order their weekly or monthly grocery shopping, to be delivered to their door for just R30.
Moreover, inclusive product bundles that are pre-secured through its various partnerships like Pick n Pay, will be made available, ranging from R90 to R500. These bundles will include a week’s worth of baby goods (wipes, nappies, formula), pantry essentials (stock, mielie meal, canned vegetables, long-life milk), or cleaning bundles. Beyond the pilot, Yethu will include deliveries from pharmacies, hardware stores, and take-away outlets.
Furthermore, in order to focus on building an inclusive ecosystem, spaza shops will form part of the app’s partner network and the use of the taxi industry will potentially give the app the largest reach for distribution
26 August 2020
SA is the first region to benefit from the newly launched white-label mobile, customer loyalty, and rewards programme platform, UBU International. This platform-based ecosystem, converts the substantial power of mobile search for products and services, into traffic in both local physical and digital retailers.
With many businesses being severely impacted by the COVID-19 pandemic, many are looking to aggressively boost sales. As such, this new platform-based solution addresses this challenge, by allowing consumers to support their local retailers and communities.
The platform engages with three audiences, including local businesses, hoping to attract and retain new customers; organisations and individuals with a substantial audience; and the public who want the convenience of a touchless mobile wallet, cashback rewards and discounts offered by a loyalty programme.
UBU International provides retailers with their own branded loyalty wallet that allows their audience, customers, or followers to directly receive loyalty rewards, and shop in the wider UBU Marketplace. As such, businesses gain exposure through the Marketplace, giving them access to a market that they would otherwise struggle to reach, as well as attract new customers, boost sales, and ensure existing customers come back for more.
Companies and individuals can now sign up to join the UBU International ecosystem, with various brands, such as Radio Laeveld, Jacaranda FM, and East Coast Radio already being members, along with hundreds of other small businesses across the country.
25 August 2020
On Monday 24 August 2020, Grasshoppers launched its new footwear collection, the Tint range. This range incorporates new G-Tech leather technology which includes three different scientific technology processes, whilst still honouring the heritage of the signature moccasin style.
Grasshoppers brand owner, Bolton Footwear, has partnered with Wellington-based tannery and supplier of leather sides, Mossop Leather, to introduce the new G-Tech leather technology to its new shoe collection range.
This range features both men and women styles with various new colours and shades. In addition, the range has incorporated three different scientific technology processes. This includes “WalkDry”, which makes use of hydroponic shoe-upper leather, that meets the highest water repellent demands, by permanently protecting the leather fibres in wet weather while maintaining breathability.
Moreover, “WalkClean” was incorporated, which makes use of anti-dirt shoe-upper leather and serves as an effective leather treatment, that targets oil and everyday stains. Lastly, “WalkBreathe”, which makes use of breathable shoe-upper leather, promotes the breathability of the leather.
According to Timothy Vermeulen, Grasshoppers designer at Bolton Footwear, the incorporation of this new technology has resulted in footwear that can keep up with the demanding standards of today, without compromising on style.
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CLICKS’ DIGITAL VOUCHERS ARE HELPING THOSE IN NEED
ACKERMANS DONATES TO WOMEN WITH A CAUSE
THE BODY SHOP’S #ISOLATEDNOTALONE CAMPAIGN FIGHT AGAINST DOMESTIC VIOLENCE
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28 August 2020
Clicks has launched a new digital voucher system to help those in need, especially during difficult times in SA. The new voucher system makes it easier to send money for essential items, to those in need, with customers being able to send vouchers directly to someone’s cell phone within minutes.
During the pandemic and its related lockdown, South Africans are increasingly struggling to afford basic essential products like soap and sanitiser, which are needed to help curb the spread of COVID-19. As such, Clicks wanted to find a way to offer customers a safe and secure way to support one another during difficult times, which was made possible through the launch of the digital voucher system.
The digital vouchers can be bought on the Clicks website or from the Clicks app by anyone, whether they are a registered user or a guest. The vouchers start at R50 and can be up to the value of R1 000, or customers have the option to choose the exact amount they want to give.
Customers can pay for the vouchers by using a credit card, debit card or via EFT, which recipients can then redeem in-store. These vouchers have zero fees and are valid for three years from the date of purchase.
According to Rachel Wrigglesworth, Clicks Chief Operating Officer, these vouchers provide people with the opportunity to help someone in need, even when it is not possible to physically reach the person.
19 August 2020
In celebration of Women’s Month, leading value retailer, Ackermans’ Faces of Change campaign has donated R50 000 to five South African women, to help them continue their work within communities.
In addition to the R50 000 donation, Ackermans also promoted these initiatives on its social and digital channels. In particular, these initiatives were featured in a television commercial and multiple PR opportunities, to more than seven million South Africans.
Ackermans initially launched its Faces of Change campaign in June 2020, to recognise the overlooked, phenomenal women of SA. The campaign was conceptualised and produced in partnership with Ackerman’s leading creative agency, 99c.
The campaign focused on encouraging consumers to participate in the movement, by donating to the featured initiatives, which belong to the campaign’s heroes. In addition to this, consumers could also nominate women, who are making an effort to uplift the lives of others in their communities.
This resulted in more than 1 700 women being nominated, with the campaign reaching across a multitude of channels including traditional, digital, and social media.
Creative Director at 99c, Christopher Smith, described the women of the campaign as being inspirational, with their acts of kindness being infectious. He further stated that the Faces of Change campaign is not just a moment, but a movement that is here to stay.
11 August 2020
In the fight against domestic violence, which has been bolstered by COVID-19, The Body Shop launched its #IsolatedNotAlone campaign, which calls on South Africans to show their support to those who are abused, by sharing the hashtag.
This campaign is based on SA being identified as one of the countries with the highest global levels of intimate partner violence. This has been worsened by COVID-19 and lockdown, whereby many women and young girls are isolated in abusive and violent environments.
The campaign also entails that for every handcare product sold, R10 will be donated to 18twenty8, a local women-led NGO. 18twenty8 is focused on educating boys and men to champion girls’ and women’s safety, as well as provide specialised training for young women at risk and offers support for gender-based violence (GBV) victims.
Moreover, the campaign has also received support from Gugu Gumede, an actress and role model for young women, who added that this cause is close to her heart.
The Body Shop General Manager, Carlos Jardim, stated that this campaign is an addition to the company’s previous campaigns on GBV, with a current increased need for campaigns of this nature amidst COVID-19 and lockdown.
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OHSAS 18001 MIGRATES TO SANS/ISO 45001
21 August 2020
The international standard for Occupational Health and Safety (OHSAS) has been replaced with SANS/ISO 45001: Occupational Health and Safety Management System Standard. This migration was discussed in a webinar, hosted by the South African Bureau of Standards (SABS) in August 2020, providing an overview of the changes and the deadline for parties to migrate.
This migration means that all organisations, including retailers that are certified to OHSAS 18001, will have to migrate to SANS/ISO 45001 by September 2021. The deadline was initially set by the International Accreditation Forum (IAF) for March 2021 but has been extended to September 2021, as a result of the delays experienced worldwide, due to the COVID-19 pandemic.
SANS/ISO 45001 is crucial for all organisations in SA, given that it provides the framework, processes, and system for the management of all workplace hazards, health issues, and incidents.
The effective implementation of the performance-based standard will reduce the number of workplace fatalities and injuries, as well as promote a healthier and happier workforce. This will be achieved with the new SANS/ISO 45001 being more comprehensive than the previous OHSAS standard and given that it requires involvement from all parties of an organisation.
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CALL FOR BETTER FOOD PRICE CONTROLS IN SA
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14 August 2020
The COVID-19 pandemic has caused havoc for poor households in countries across the world. In SA, an increasing number of individuals are facing hunger due to mass job losses and small, poorly implemented supplementary cash grants, with this pandemic further highlighting the country’s poor food system.
In SA, powerful firms operate with little oversight, while vulnerable parties in the informal sector continue to face over-regulation. This is evident whereby, during the national lockdown, the government placed the formal food sector at the centre of continued food supply, whilst informal food vendors were restricted.
Moreover, the pandemic has seen a rise in prices of essential food items. According to NGO Pietermaritzburg Economic Justice and Dignity’s price survey, an 8.2% price increase was seen in a household food basket for the three months, from 2 March to 3 June 2020.
Despite the government addressing the issue of higher food prices, by concluding an agreement with major retailers to limit price increases on key items, this was solely done during the most severe part of the lockdown. However, this lapsed immediately after the first easing of the lockdown on 4 May, with retailers then increasing the prices of certain food items in response to higher inputs.
As such, there has been a call for a renewed list of price limits to be put in place to cap prices, along with a call to broaden the list of items subject to the price monitoring regime. The current list of 11 food items excludes various items that constitute the food basket of low-income households.
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Old Mutual Life Assurance Company (SA) Limited is a licensed FSP.
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