INTELLIGENCE RETAIL INDUSTRY - COMPILED: OCTOBER 2020 - Old Mutual
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THE INTELLIGENCE
REPORT
RETAIL INDUSTRY
INTELLIGENCE
MONITOR CORPORATE
DO GREAT THINGS EVERY DAY
COMPILED: OCTOBER 2020
Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.
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IN THIS ISSUE INTELLIGENCE OVERVIEW TRENDS & NEWS MERGERS & ACQUISITIONS INNOVATION & TECH TRENDS SOCIO-POLITICAL FACTORS LEGISLATION
INTELLIGENCE TRENDS & MERGERS & INNOVATION & SOCIO-POLITICAL LEGISLATION OVERVIEW NEWS ACQUISITIONS TECH TRENDS FACTORS RETAIL INDUSTRY INTELLIGENCE MONITOR
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GLOBAL NEWS SA NEWS COMPETITOR COMPETITOR NEWS
FINANCIAL RESULTS
Four Global Retailers that COVID-19 to Permanently Change Checkers Xtra Savings Rewards
Continue to Outshine Customer Experience Programme Tops the Charts
Truworths International Limited
Despite the past two decades being a The outbreak of the COVID-19 pandemic The Checkers Xtra Savings rewards
According to the latest integrated annual
turbulent time for global retailers, a select has significantly disrupted the way we programme is the fastest-growing rewards
report for the 52 weeks ended 28 June 2020,
group of innovative retail companies has operate, with this expected to continue to programme of its kind in SA, with more
Truworths International Limited experienced
found ways to adapt and thrive, overtaking have long-lasting effects across all sectors. In than five million consumers having joined
a challenging trading environment, which
some of the most iconic brands. These particular, the retail sector has seen extensive the programme, since its launch in October
was significantly impacted by the COVID-19
competitors include Target, Amazon, TJ evolution in several aspects of its operations, 2019. According to Nielsen, the Xtra Savings
pandemic. This can be seen in group revenue
Maxx, and Walmart. (8 October 2020) with customer experience seeing the most rewards programme has played a key role
decreasing by 8%, from approximately R19.6
significant transformation. (5 October 2020) in Checkers gaining R4 billion in market
billion in 2019, to approximately R18 billion in
Lowe’s New Curbside Trick-or- share from its competitors, in the last
2020. (8 October 2020)
COVID-19 Impacts SA Retailer financial year. (7 October 2020)
Treating Even
Food Prices SPAR Group Limited
In celebration of Halloween, Lowe’s Retailability Repositions Edgars
announced the launch of its curbside trick- According to the Competition Commission, According to the latest trading update for the as a Mass-Market Brand
or-treating event where families can drive COVID-19 has brought about short-term 48 weeks to 28 August 2020, the SPAR Group
up to their preferred store location and pick pricing effects, particularly on essential Limited showed resilient performance during The well-known retailer, Edgars, will be
up candy and a small pumpkin for free. This food products, which have seen substantial a challenging trading environment due to rebranded as a mass-market brand with
event is a result of the COVID-19 pandemic, price increases during the lockdown. the COVID-19 pandemic. This was evidenced a focus on fashion and beauty products,
and social distancing measures, negatively These increases were also observed in the by the fact that group sales increased by exiting from its homeware division. This
impacting families’ traditional trick-or- BusinessTech tracker, which outlined various 12.4%, from approximately R99.7 billion in comes after Edcon finalised the sale of
treating plans. (6 October 2020) price points for some of SA’s largest retailers. 2019, to approximately R112 billion in 2020. parts of Edgars to Retailabilty, with the
(30 September 2020) SPAR Southern Africa sales increased by company acquiring 130 out of 194 stores.
Walmart Unveils its New Store Design 4.8%, which is a graphical reflection of the In addition, approximately 5 200 jobs have
SA’s Largest Retailers Remove impact of the pandemic on the group’s been saved. (22 September 2020)
Walmart unveiled its reimagined store
design at the end of September 2020, which TRESemmé Products from Shelves business. (18 September 2020)
SPAR Named Overall Winner of the
is set to be rolled out across multiple stores. During September 2020, some of SA’s largest
This redesign is set to create a seamless The Foschini Group Limited Supplier Development Awards
retailers decided to stop sales of TRESemmé
omni-shopping experience, with more self- products, with retailers such as Pick n Pay, According to The Foschini Group Limited’s SPAR has recently been named the
checkout kiosks and contactless payment Woolworths, Dis-Chem, Shoprite Checkers, trading update for the 22 weeks ended overall winner of the Absa Business Day
options. The new design was planned before and Clicks removing the brand’s products 29 August 2020, the group reported a Supplier Development Awards, which
the COVID-19 pandemic, however, the from its shelves. This comes following challenging trading environment across all was announced during a recent digital
pandemic sped up plans for the new store widespread protests over a controversial its major territories, including SA, the UK, and event. The awards are held annually and
design rollout, with contactless features. advert regarding black hair. Australia. This can be seen by retail turnover recognise the need to close the gap
(30 September 2020) (11 September 2020) decreasing in each business division of the between suppliers and corporates in SA.
group. (15 September 2020) (18 September 2020)
INTELLIGENCE TRENDS & MERGERS & INNOVATION & SOCIO-POLITICAL LEGISLATION
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RETAIL INDUSTRY INTELLIGENCE MONITOR OVERVIEW
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ACQUISITIONS & TECHNOLOGY TRENDS FACTORS
PARTNERSHIPS Launch of SA Food Loss and Waste
Voluntary Agreement
New Sportscene App Launched Pick n Pay School Club Resumes
Delivery of Bars of Soap to Schools in During September 2020, the Consumer
The Foschini Group Receives Sportscene recently launched its new
Goods Council of South Africa (CGCSA)
Sportscene app, with the aim of enhancing Need
Approval to Acquire Jet Stores launched the South African Food Loss and
the overall shopping experience for its In an attempt to curb the spread of COVID-19,
The Foschini Group (TFG) recently received Waste Voluntary Agreement. This agreement
customers. The app will allow customers Pick n Pay (PnP) School Club, in collaboration
approval from the Competition Tribunal to is set to ensure that food manufacturers and
to search for all inventory available at with Willowton Group, resumed the delivery
acquire Jet Stores, subject to conditions. retailers are committed to reducing food
Sportscene stores, across the country, of donated soap bars to schools in need in
This approval comes after the Competition waste, to achieve the United Nation’s (UN)
as well as offer a range of other features. the Western Cape, Gauteng, and KwaZulu-
Commission investigated competitor Sustainable Development Goal, to halve
(6 October 2020) Natal provinces. This comes as lockdown
concerns that the merger will give TFG global food waste by 2030. (29 September
regulations have been eased, with the 2020)
a dominant position, however, was not
CyberEcomm Introduces New president urging South Africans not to
convinced that this is the case.
(23 September 2020) E-Commerce Shopping Solution become complacent. (29 September 2020)
The Durban-based digital solutions company,
Converse Supports Youth Mentorship
Pick n Pay Partners with UCOOK CyberEcomm, recently introduced its new
all-in-one shopping platform, ShopESpot. and Empowerment
Pick n Pay recently entered an exclusive retail This platform allows SA businesses to
partnership with UCOOK and will now stock Converse has pledged a $1 million
develop an online presence and tap into investment in a new accelerator programme,
its Craft Meals range of ready-made frozen the booming digital and online economy.
meals. This partnership forms part of the which has been dubbed Converse “All Star
The new platform allows SMMEs and larger Captains”, that will run over two years. With
retailer’s continuous expansion of its growing corporates to easily build an e-commerce
frozen range. The partnership will allow this investment, the company targeting the
website, for products and services to be sold youth, to help drive the progress it wants to
customers, to purchase their UCOOK meals online. (22 September 2020)
from a physical store, for the first time. see in the world. (23 September 2020)
(16 September 2020)
Game Debuts New Tech-Based Retail Clicks Actively Focusing on
Store Transformation
The Massmart-owned retailer, Game, recently Following the resignation of Click’s Non-
debuted its all-new, tech-based concept Executive Director, Nonkululeko Gobododue
store in the Mall of Africa, with plans to to the recent racist TRESemmé advert, which
expand to other locations. This new design was published by the retailer, Clicks has
has been optimised to get customers in and decided to focus on its transformation. The
out effectively, whilst reducing stress for group will be working actively with an inter-
shoppers and staff. (17 September 2020) ministerial team, which will implement and
monitor its transformation initiatives.
(17 September 2020)
INTELLIGENCE TRENDS & MERGERS & INNOVATION & SOCIO-POLITICAL LEGISLATION OVERVIEW NEWS ACQUISITIONS TECH TRENDS FACTORS TRENDS & NEWS
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GLOBAL NEWS
Four Global Retailers that Lowe’s New Curbside Walmart Unveils its
Continue to Outshine Trick-or-Treating Event New Store Design
Despite the past two decades being a turbulent In celebration of Halloween, Lowe’s announced Walmart unveiled its reimagined store design at
time for global retailers, a select group of innovative the launch of its curbside trick-or-treating event. the end of September 2020, which is set to be
retail companies has found ways to adapt and thrive, Similar to a number ofother retailers, Lowe’s is rolled out across multiple stores. This redesign
overtaking some of the most iconic brands. These engaging with Halloween customers in an entirely is set to create a seamless omni-shopping
competitors include Target, Amazon, TJ Maxx, and different way this year, as a result of the COVID-19 experience, with more self-checkout kiosks and
Walmart. pandemic and social distancing measures, contactless payment options.
negatively impacting families’ traditional trick-or-
This new generation of competitors includes Target, treating plans. According to Walmart Chief Customer Officer
which consistently stands out with its designer
collaborations, that make names like Mizrahi, Rodarte,
and Executive Vice President, Janey Whiteside,
and Phillip Lim accessible to the everyday shopper. As such, Lowe’s has launched its new curbside the new store design was planned before the
Moreover, the retailer has built one of the most robust Halloween offering to keep this tradition alive. COVID-19 pandemic. However, the pandemic sped
private-label businesses in the industry, investing Starting on on 10 October, families can book a spot up the retailer’s plans for the new store design
billions into upgrading its stores and experimenting online for the Lowe’s Halloween experience at a rollout, with contactless features. This design is set
with services, such as curbside pick-up and quasi- nearby location. This will entail families driving up to be rolled out in 200 locations, within this fiscal
distribution centres. to their preferred store location, picking up candy year ending early 2021, with 1 000 to be rolled out
and a small pumpkin for free, through the curbside by the next fiscal year.
The second retailer, Amazon, has stayed ahead delivery offering. Customers are welcome to come
through its diversified product array and nascent dressed in their Halloween costumes, however, In terms of the new design, signs will be updated
marketplace business. Among its most notable costumes are not a requirement. to reflect the Walmart app icon, and visual
triumphs, is the Amazon Prime membership program, reminders will be visible throughout the stores,
which encourages loyalty and drives business to other Thereafter, on on 28 October, the retailer is to encourage shoppers to download the app and
Amazon services. encouraging customers to carve the pumpkin use the item finder map to navigate around the
with a message of gratitude to first responders, physical store. This is aligned with the new design’s
Additionally, despite the retailer TJ Maxx being in celebration of National First Responders Day. primary focus, of getting what you want as quickly
steadfastly offline, the off-price giant has long set Customers are then encouraged to share their as possible, with the new layout bringing greater
itself apart through its in-person experience. In creations on social media, using the #BuildThanks visibility to sections of the store.
particular, its in-store “treasure hunt” experience,
tagline.
which encourages shoppers to search for bargains, is
one of the reasons some analysts call the company’s Furthermore, self-checkout kiosks will use
business model “recession-proof”. According to Lowe’s Executive Vice President contactless payment solutions, including Walmart
of Stores, Joe McFarland, the company knows Pay, to limit contact between associates and
Lastly, Walmart has continued to outshine, with that many customers will still want to celebrate customers. In addition, select stores will have
the company going head-to-head with Amazon. Halloween, even if the holiday may look a bit Scan & Go, part of the new Walmart+ membership
Walmart’s “everyday low prices” have offered different this year. As a result, the company has programme, which will allow shoppers to scan
consumers a buffer, during economic downturn and launched this special event, to ensure that the items as they shop and pay through Walmart Pay.
its international expansion, Sam’s Club membership tradition of trick-or-treating does not end.
warehouse segment, and its significant digital
investments have further set them apart.
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SA NEWS
COVID-19 to Permanently COVID-19 Impacts SA SA’s Largest Retailers
Change Customer Retailer Food Prices Remove TRESemmé
Experience Products from Shelves
According to the Competition Commission, COVID-19
has brought about short-term pricing effects,
The outbreak of COVID-19 has significantly disrupted particularly on essential food products, which During September 2020, some of SA’s largest retailers
the way we operate, with this expected to have have seen substantial price increases during the decided to stop sales of TRESemmé products, with
long-lasting effects across all sectors. The retail lockdown. These increases were also observed in the retailers such as Pick n Pay, Woolworths, Dis-Chem,
sector, specifically, has witnessed extensive evolution BusinessTech tracker, which outlined various price Shoprite Checkers, and Clicks removing the brand’s
in its operations, particularly in terms of customer points for some of SA’s largest retailers. products from its shelves. This comes following
experience. widespread protests over a controversial advert
Under adverse economic conditions, SA consumers regarding black hair.
With the customer journey in-store being dramatically have become more price-sensitive, which has put
different from pre-COVID-19 times, it is expected pressure on retailers to keep food prices low. However, In light of the recent concern, regarding the language
that some COVID-19 regulations will morph into the the onset of COVID-19 has brought about short-term and images used by TRESemmé to advertise its hair
operational fabric and become a part of the new pricing effects. product line, major retail brands have decided to
normal. remove TRESemmé products from its stores. This is a
The Competition Commission recently published result of two advertisements, released on the Clicks
its latest report on food prices during the lockdown. website, which set off an outcry on social media and
These changes include the evolution of customers’
This analysis shows that, for some essential products, sparked widespread protests, led by the Economic
perception of retailers, as more customers are fearful
such as potatoes and onions, the margins earned by Freedom Fighters (EFF), at Clicks stores across the
and need reassurance, that the space they are
retailers have grown substantially over the lockdown country.
entering is safe. Retailers should ensure that safety
measures are visible, such as masks, sanitisers, and period.
social distancing markers. The advertisements included one advert, which
According to the BusinessTech price tracker, which showed a Black woman’s hair as “frizzy and dull”, and
tracks a basket of goods commonly found in middle- the other image showed blonde hair as “fine and flat”
At the same time, customers will still need to be
class household shopping carts, the average 2020 and “normal”.
welcomed as humans, and brands will need to seek
new ways of enhancing the customer experience. basket after the worst of the lockdown was 5.6%
Frontline workers will therefore need to connect higher than in 2019. This further reflects the price With the content and images of the ad being
with customers, build a relationship, and make the spikes, despite the low inflation environment. provided by TRESemmé, retailers decided to halt
customer feel more valued. the sale of the brand’s products. Pick n Pay has
The most significant price increases were recorded since removed the products from its shelves while it
for flour, rice, and sugar, where year-on-year increases engages with the supplier, whilst Shoprite’s Checkers
COVID-19 has also put a strain on online service
averaged between approximately 12% and 36%. supermarket chain and Woolworths Holdings have
offerings, which for most retailers has not been fully
also removed the products, stating it does not
developed, to maximise online customer experiences.
support ‘the racial biases expressed in the TRESemmé
With more consumers shifting to online purchasing, In terms of retailers, Woolworths remains the most campaign’. Dis-Chem was the latest to join this list,
retail groups are having to play catch-up, in order to expensive option for shoppers, however, this is not with the company confirming the removal of the
compete with online retail market leaders, such as across the board. Pick n Pay came in with the second products on Twitter.
Takealot, Uber, or Amazon. highest-priced basket, followed by SPAR. Checkers
remained the most affordable retailer overall, with the
cheapest price in six of the 12 items measured.
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COMPETITOR NEWS
Checkers Xtra Savings Retailability Repositions SPAR Named as Overall
Rewards Programme Edgars as a Mass-Market Winner of the Absa
Tops the Charts Brand Business Day Supplier
Development Awards
The Checkers Xtra Savings rewards programme The well-known retailer, Edgars, will be rebranded
is the fastest-growing rewards programme of its as a mass-market brand with a focus on fashion
kind in SA, with more than five million consumers and beauty products, exiting from its homeware SPAR has recently been named the overall
having joined the programme, since its launch division. This comes after Edcon finalised the winner of the Absa Business Day Supplier
in October 2019. According to Nielsen, the Xtra sale of parts of Edgars to Retailabilty, with the Development Awards, which was announced
Savings rewards programme has played a key company acquiring 130 out of 194 stores. In during a recent digital event. The awards are
role in Checkers gaining R4 billion in market share addition, approximately 5,200 jobs have been held annually and recognise the need to close
from its competitors, in the last financial year. saved.
the gap between suppliers and corporates in
SA.
Moreover, since the Xtra Savings rewards Retailability is a fashion retailer and a holding
programme launch in October 2019, it has had company of store brands including Legit, Beaver
more than 15 000 customers signing up per day. Canoe and Style, operates in over 460 stores across The Absa Business Day Supplier Development
According to the Chief of Strategy and Innovation South Africa, Namibia, Botswana, Lesotho, and Awards was held for the third year in 2020.
for the Shoprite Group, Neil Schreuder, the eSwatini. The awards encourages best practice, and
success of the Xtra Savings programme can be collaborative ecosystems between corporates
attributed to the convenience it offers, with offers According to Norman Drieselmann, Retailability and suppliers, government and the public
being loaded directly onto the customer’s card. Chief Executive, the main focus of the Edgars sector, which all benefits the involved parties
Offer redemption at till points are seamless, with brand repositioning, is to help bring it back to the
personalised deals automatically being loaded to and supports the rebuilding of the South
mass market space in SA. Drieselmann believes
the customer’s Xtra Savings card. African economy. A key theme of this year’s
that the Edgars business started shifting towards
an upper-income, niche market, which further event was centred around how dependent
Furthermore, the Xtra Savings Programme’s drove it away from the average South African everyone is on each other and how businesses
success can also be attributed to its omni-channel consumer. should be looking out for each other.
experience, where customers can see their deals
on WhatsApp, USSD, the Checkers website, the Furthermore, Drieselmann indicated that the new In terms of the awards, the SPAR Group was
Checkers application, on leaflets, and in-store. strategy will include finding the right balance identified as the overall winner, as the retailer
between private labels and international brands, stood out as a leader in supplier development.
Checkers believes that the Xtra Savings rewards that are recognisedby the local market and have
being delivered, are more needed than ever the right value proposition.
before, with customers increasingly seeking value In addition to being the overall winner, the
after lockdown. According to Schreuder, the Xtra As part of the rebranding, the store also plans to
SPAR Group also won the Rural and Township
Savings programme was developed with its core relaunch its e-commerce website by the end of Development Award for its SPAR Rural
being customer-centric, which the group believes October, as well as restructuring its back office. Hub programme, which supports small-
is the reason why the programme is leading the Moreover, the group further aims to ensure Edgars’ scale farmers and creates a market for their
industry in this regard. operations is a top priority, as integration moves products.
ahead.
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COMPETITOR FINANCIAL RESULTS
Truworths SPAR Group Limited The Foschini Group Limited
International Limited
According to the latest trading update for the According to The Foschini Group Limited’s (TFG)
48 weeks to 28 August 2020, the SPAR Group trading update for the 22 weeks ended
According to the latest integrated annual Limited showed resilient performance during 29 August 2020, the group reported a
report for the 52 weeks ended 28 June 2020, challenging trading environment across all
a challenging trading environment due to the
Truworths International Limited experienced its major territories, including SA, the UK, and
COVID-19 pandemic. This was evidenced by
a challenging trading environment, which Australia. This can be seen in retail turnover
the fact that group sales increased by 12.4%,
was significantly impacted by the COVID-19 decreasing in each business division of the group.
pandemic. This can be seen in group revenue from approximately R99.7 billion in 2019, to
decreasing by 8%, from approximately approximately R112.0 billion in 2020.
In terms of retail turnover, the TFG London
R19.6 billion in 2019, to approximately R18.0 business division decreased by 58.1%, TFG
billion in 2020. In terms of the SPAR Southern Africa
Australia decreased by 28.3%, and TFG Africa
business, sales increased by 4.8%, which is decreased by 26.4%. In terms of retail turnover
Furthermore, group retail sales decreased by a graphical reflection of the impact of the contributions, TFG Africa contributed 65.2%,
9.2%, from approximately R18.6 billion in 2019, pandemic on the group’s business. The core whilst TFG Australia and TFG London contributed
to approximately R16.9 billion in 2020, with SPAR business in the Southern Africa region 19.0% and 15.8% to the total retail turnover
account sales comprising 51% of retail sales increased by 8.7%, with like-for-like sales of the group, respectively.
in 2020. Moreover, account and cash sales increasing by 7.5%.
decreased by 8.4% and 9.9%, respectively. The group’s retail operations decreased by
The core SPAR wholesale business growth 29.7% for the 22 weeks ended 29 August 2020.
This financial performance was impacted by was adversely impacted by the ban of In contrast, the group’s e-commerce turnover
COVID-19 and its related trading restrictions, cigarettes, resulting in the turnover of this experienced growth of 29.7% for the 22 weeks
which contributed to a lower revenue being category decreasing by 30.5% for this period, when compared to the same period in the
generated from retail sales and a decrease previous year. This can largely be attributed to
and a significant decrease of 71.9% in the five
in account payments. Additionally, higher customers’ continuous preference for online
months to 28 August 2020, year-on-year. In
provisions for doubtful debts in Truworths shopping during the COVID-19 pandemic.
addition, internal measured price inflation
increased operating expenses, and intangible-
and other assets were also negatively impacted. increased marginally to 4.6% during this time.
In SA specifically, the trading environment has
further been challenged by continued electricity
In terms of business segments, Truworths retail Furthermore, liquor sales decreased
load shedding between May and August,
sales decreased by 8.7% from R13.5 billion in significantly by 16.4%, due to the regulatory
resulting in approximately 15 000 trading hours
2019 to R12.3 billion in 2020. In SA, Truworths sales ban in the Southern Africa region. being lost. In Australia, trade was significantly
operations contributed 96.7% of the Truworths Moreover, the building materials business lost impacted by the re-introduction of lockdown
segment’s retail sales in 2020, compared to five weeks of trade due to the lockdown in measures in some states. In the UK, stores
96.6% in 2019. Additionally, retail space grew the second half of the financial year, resulting opened from mid-June, however, slow progress
by 0.5%, with Truworths opening 14 stores and in a turnover decrease of 3.5% for the period. was made due to social distancing rules and
closing 26 in 2020. Additionally, Build it sales also declined by restrictions that were still largely in play.
3.5%, which is a reflection of trade being lost,
as a result of lockdown.
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MERGERS, ACQUISITIONS & PARTNERSHIPS
The Foschini Group Pick n Pay Partners
Receives Approval to with UCOOK
Acquire Jet Stores Pick n Pay recently entered an exclusive retail
partnership with UCOOK and will now stock its
The Foschini Group (TFG) recently received Craft Meals range of ready-made frozen meals. This
approval from the Competition Tribunal to acquire partnership forms part of the retailer’s continuous
Jet Stores, subject to conditions. This approval expansion of its growing frozen range.
comes after the Competition Commission
investigated competitor concerns that the merger The Pick n Pay and UCOOK partnership, will
will give TFG a dominant position, however, was allow customers to purchase their UCOOK meals
not convinced that this is the case. from a physical store for the first time, with eight
restaurant-quality frozen Craft Meals now being
The Tribunal conducted a virtual proceeding on available at 15 selected stores in Cape Town.
the matter, after it heard submissions regarding However, the partnership will be expanded to
concerns from the Commission, the South African more stores nationwide, based on customer
Commercial Catering and Allied Workers Union feedback.
(Saccawu), and the merger parties. The Tribunal
announced that the approval of the sale of Jet The UCOOK frozen Craft Meals are available in
Stores was granted, subject to conditions. three categories, including Odyssey, Artisan, and
Nourish, with each meal having been developed by
These conditions include that TFG may not celebrated chefs and containing fresh, nutritious
retrench Jet employees for two years, and Edcon ingredients. This offering is an expansion of Pick n
employees must be given preference for any Pay’s growing frozen range, which has expanded
vacancies arising in the Jet business for three to include healthy frozen snacking options and
years, after the merger implementation date. ready-to-eat meals, which includes new plant-
based options.
Furthermore, in line with recommendations
from the Commission, other conditions include According to Pick n Pay’s Retail Executive for
transferring stores to be fully integrated into TFG’s Marketing, John Bradshaw, there was a significant
structures, and TFG maintaining a similar ratio of rise in interest for frozen meals at the start of
local procurement by Jet stores, as in its previous lockdown, with the interest in frozen meals
financial year. Additionally, TFG must increase local continuing to grow due to it being deemed
procurement for these stores. convenient and wholesome.
With the acquisition, TFG’s market share in the Bradshaw indicated that Pick n Pay is excited
apparel market will increase to 22%. However, about what it can achieve when it partners with
TFG will benefit the most in terms of the lower energetic start-ups, such as UCOOK. He further
LSM market, with its clothing market share set stated that by adding Pick n Pay’s distribution
to grow by approximately 18%. to UCOOK’s innovation, the group can provide
something truly special to its customers.
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INNOVATION AND TECHNOLOGY TRENDS
New Sportscene App CyberEcomm Introduces Game Debuts New Tech-
Launched New E-Commerce Based Retail Store
Sportscene recently launched its new
Shopping Solution The Massmart-owned retailer, Game, recently
Sportscene app, with the aim of enhancing debuted its all-new, tech-based concept store in
the overall shopping experience for its The Durban-based digital solutions company, the Mall of Africa, with plans to expand to other
CyberEcomm, recently introduced its new all-in-one locations. This new design has been optimised
customers. The app will allow customers
shopping platform, ShopESpot. This platform allows to get customers in and out effectively, whilst
to search for all inventory available at reducing stress for shoppers and staff.
SA businesses to develop an online presence and
Sportscene stores, across the country, as well
tap into the booming digital and online economy.
as offer a range of other features. The new store design boasts a range of new tech
With the COVID-19 pandemic fast-tracking features to facilitate the overall customer shopping
The app was launched, in light of the global companies’ digital transformation projects, experience, including the new rotation design,
COVID-19 pandemic, which has encouraged ShopESpot has been developed for local businesses making the store easier to navigate than traditional
people to stay away from public spaces. to easily adapt to the e-commerce space, ensuring aisles.
Furthermore, this app serves as a way for the that they are not left behind. The new ShopESpot
retailer to stay in touch with its customer platform allows SMMEs and larger corporates to Moreover, the new store features a range of vending
build an e-commerce website to market and sell machines placed across the store, for products
base, ensuring that it does not lose customer
their products and services online. such as cell phone cables and battery boosters, as
engagement during these times. well as high-volume items. This allows customers
This is achieved through a customised online to easily insert funds and instantly walk out with
The new Sportscene app is available for shopping platform, which offers clients a complete their purchase, without having to deal with queues,
download on Google Play and the Apple e-commerce solution. It includes an interactive people, and cashiers.
App Store, allowing customers the ability to mobile app, that provides the tools required to
search for available inventory at Sportscene manage a business online, and control customer Self-checkout areas have also been incorporated,
stores nationwide. In addition, the app engagement via the web or social media. although still in the testing phase, as well as click-
will provide a sneaker calendar to inform and-collect areas for customers, to order online and
The platform allows businesses to showcase pick up their order in a series of lockers in the store.
shoppers when the latest footwear becomes
available, as well as offer users the ability to up to 1 000 items, embeds a collection facility,
and allocates sold items for delivery and pickup. Furthermore, the new store also boasts a range
tune into the Sportscene Radio.
Moreover, using the online payment solution, of screens, with a large touchscreen upfront for
businesses can receive payments through a navigation, as well as smaller ones showing digital
According to Sportscene E-Commerce payment gateway, allowing customers to make versions of Game’s promotions. Each shelf includes
Manager, Ally Williams, the company is card-not-present payments immediately. a screen, which is wirelessly connected to Game’s
excited to launch the new app. Williams backend software. This facilitates easy price
further expressed that the app offers Furthermore, the platform is interfaced with a changes and QR codes, for consumers to access
specs and order online.
customers the ease of shopping for the latest customer relationship management dashboard,
sneakers and clothing, as well as offering a which can create client databases, print or allocate
vouchers, track transactions from the order through This Mall of Africa Game store design is set to
range of other exciting features and lots of
to completion, and communicate with clients via expand to other provinces in SA, with plans to
extra benefits. launch the design in two more locations, before the
SMS or email.
end of the year.
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Clicks Actively Focusing Pick n Pay School Club Converse Supports
on Transformation Resumes Delivery of Bars Youth Mentorship
Following the resignation of Click’s Non-
of Soap to Schools in and Empowerment
Executive Director, Nonkululeko Gobodo due to Need
the recent racist TRESemmé advert, which was Converse has pledged a $1 million investment in
published by the retailer, Clicks has decided a new accelerator programme, which has been
to focus on its transformation. The group will In an attempt to curb the spread of COVID-19, dubbed Converse “All Star Captains”, that will run
be working actively with an inter-ministerial Pick n Pay (PnP) School Club, in collaboration with over two years. With this investment, Converse is
team, which will implement and monitor its Willowton Group, resumed the delivery of donated showing its commitment to putting communities
transformation initiatives. soap bars to schools in need in the Western Cape, at the heart of its marketing, with the company
Gauteng, and KwaZulu-Natal provinces. This comes targeting the youth, to help drive the progress it
as lockdown regulations have been eased, with the wants to see in the world.
In September 2020, Click’s TRESemmé advert president urging South Africans not to become
was publicly condemned by Gobodo, resulting complacent.
in Clicks having to determine how the ad The “All Stars” programme is a community-
focused ecosystem of mentorship, commission
came to be published. As a result, Clicks has With more children returning to school, hygiene and funding, with the global network of Converse
committed to increase spending on small, and education have become more important. PnP being utilised to facilitate capacity building, which
micro, and medium enterprises, as well as show School Club and Willowton Group have resumed assists young creatives in gaining professional
its support to local beauty, hair care brands, their initiative, with Willowton Group providing experience and opportunity.
and other products. Clicks will be working the soap and PnP distributing it to its network of
actively with an inter-ministerial team, which more than 3 000 schools in SA. The programme
Converse is expanding its All Stars programme,
includes the Department of Trade, Industry, distributed 370 074 soaps and reached classrooms
where it will invite up to 250 creative individuals
and Competition, to implement and monitor its across SA before the lockdown in March. Deliveries
from the public for the first time, to join “Converse
transformation initiatives. resumed in August and the remaining soap bars
All Stars”. New members will get the opportunity
expected to reach learners by end of October 2020.
to engage with the “All Stars Series”, an ongoing
Additionally, some PnP stores have also handed out
According to Deputy Minister, Nomalungelo experience that includes one-of-a-kind workshops,
soap bars to pensioners.
Gina, the department is interested in seeing conversations, and performances that are
localisation and transformation, with the facilitated by the extended creative family of
department already developing a cosmetics Furthermore, the partners have also started working Converse.
with independent owners of 20 PnP Market stores
sector strategy plan, that can help retailers like
in the greater Johannesburg area, who have assisted
Clicks advance. Converse’s $1 million accelerator programme
with the identification of lower-income school areas
aims to fast-track the progress of individual “All
where contributions have been made towards
Stars”, who want to define a new possible through
Despite the department acknowledging the feeding schemes.
creative action in youth development, inclusivity
corrective action that Clicks has taken, it wants
and diversity, as well as sustainability. In October
to ensure something good comes out of this By the end of the project in October, more than 2020, “All Stars” will submit individual proposals to
situation, with this opportunity being used 750 000 soap bars will have been distributed to Converse regarding ideas they believe will change
to facilitate the entry of black players into the young learners across SA, totalling approximately the game. Thereafter, in early 2021, the first annual
beauty and hair product market. R5 million. The project’s focus is to reach schools class of Captains will receive funding for a year,
and frail care centres in KwaZulu-Natal, select to help realise their ideas along with mentorship
schools in Gauteng, and schools in the Western Cape. opportunities from Converse.
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Launch of SA Food Loss
and Waste Voluntary
Agreement
The Consumer Goods Council of SA (CGCSA)
launched the SA Food Loss and Waste Voluntary
Agreement. This agreement is set to ensure that
food manufacturers and retailers are committed to
reducing food waste, to achieve the United Nation’s
(UN) Sustainable Development Goal, to halve global
food waste by 2030.
This agreement was launched to coincide with
the International Day of Awareness of Food Loss
and Waste (IDAFLW), which was on 29 September
2020. The agreement was developed by CGCSA, in
partnership with the Department of Trade, Industry,
and Competition (DTIC), and the Department of
Environment, Forestry, and Fisheries (DEFF). The
agreement was co-funded by the European Union,
through the SA-EU Dialogue Facility, and has already
received pledges from retailers such as Massmart,
Pick n Pay, Woolworths and Shoprite.
This food waste initiative is the culmination of efforts
made since 2015, when the DTIC approached the
CGCSA to lobby its members, to sign a voluntary
agreement on food waste. This voluntary agreement
is to be in line with the UN goal to halve global food
waste by 2030, as well as the commitment by the
Consumer Goods Forum (CGF) to reduce global food
waste by half, by 2025.
This newly launched agreement, commits CGCSA
food manufacturing and retail members to
implement a range of measures, to minimise and
reduce food waste in the country. This serves as
one of the efforts by SA, to transition to sustainable
consumption and production, in order to achieve
healthy sustainable food systems.
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