Stocktake: Pepkor expands into South American market
Pepkor acquires Brazil’s value retailer, Avenida; and the Nedbank IMC 2022 conference launches.Monday, 07 Feb 2022
Pepkor acquires Brazil’s value retailer, Avenida; the Nedbank IMC 2022 conference launches; MyRunway rebrand; and the fish paste memes keep coming.
Pepkor expands into Latin America with Brazilian value retailer
Pepkor group, which includes PEP, Ackermans, Incredible Connection, BUCO and Tekkie Town, has announced the acquisition of Brazilian-based value retailer, Avenida, effective date 4 February 2022. Representing less than 4% of Pepkor’s market capitalisation, the transaction enables Pepkor (Southern Africa’s largest retailer by store footprint), to partner with Avenida’s founder-led management team in Brazil to unlock significant growth in the largest economy in Latin America. After more than two years of extensive research into emerging market opportunities and a thorough due diligence by management and various advisors, Avenida has been identified as a strong strategic fit for the group to replicate its discount and value business model within other emerging markets.
Operating in the low end of the Brazilian retail market with a diversified product mix across its 130 stores, Avenida has a market-leading presence in core regions of Brazil. A lower to middle income population of approximately 212 million people provides enormous potential to exponentially increase its store base and revenue. Pepkor’s CEO, Leon Lourens said, “We are excited about this new chapter for Pepkor to enter a new geography with enormous growth potential. The combination of Avenida and Pepkor brings together the required capital, retail synergies and the collective know-how to bolster Avenida’s growth in years to come. I believe that together we will be able to build and grow Avenida to become a giant in Brazilian value retail.”
Annual Nedbank IMC conference launches for 2022
The Nedbank IMC 2022 conference will this year take place as a virtual one-day event, on 29 July 2022. The conference will be asking marketers, and indeed anyone serious about communications, to consider their relevance in a radically changed – and changing – world. Last year, 1,300 delegates from 14 countries watched the live virtual conference. This year delegates can expect a hard-hitting, straight-talking event ignited by a host of international and local marketing trail-blazers, says CEO of the Nedbank IMC, Dale Hefer. “Today’s customers are a blend of informed, street-smart and critical. They know what they want. Are marketers keeping up? On 29 July this year we plan on unpacking and interrogating the relevance of marketing.” Since its launch in 2019, the Nedbank IMC has become known for its no sales-pitch, one stream, one day format and renowned, specialist speakers. The Nedbank IMC is presented in association with the Marketing Association of South Africa (MASA), with chartered marketers receiving CPD (Continuous Professional Development Points) for attending. The conference is endorsed by the IAB SA; and Retailing Africa is a media partner. Book at http://www.imcconference.com – virtual tickets are R1,999.00 (excl. VAT) and group discounts are available; and Nedbank IMC 2022 bursaries are available at https://imcconference.com/imc-bursaries/.
Fashion site MyRunway rebrands
South African-headquartered online fashion retailer RunwaySale has rebranded to MyRunway. The rebrand comes on the back of a period of sustained growth and success for the ecommerce outfit. The Norwegian-backed private equity Spear Capital invested in MyRunway in early 2020, before adding to its investment in late 2021. Spear Capital’s involvement is a crucial part of the site’s plans to expand further in 2022 and to help bring even more international brands to its customers. Founded in 2012, it offers more than 500 high-end international fashion brands to its customers. MyRunway has since entered into new product categories, embraced new technologies, and adapted its operating model.
MAPS data all in one place
The Marketing Research Foundation (MRF) released the data of the first full year Marketing All Product Survey (MAPS) to its subscribers and the media, marketing and advertising industries. The full presentation and recording can be downloaded or viewed on the MRF’s website. From media to brands, segmentations to self-perception of the consumer, the annual survey data provides answers to many questions asked by marketers. The research is transparent and free of influence from commercial interests, allowing marketers to make informed choices based on data generated by the input of their own questions, says MRF’s CEO, Johann Koster. The survey highlights brand data in many categories that include vehicles, clothing and shoes, cosmetics, alcohol, malls, fast food, consumer purchasing behaviours and brand loyalty. MAPS forms the focal point for developing marketing strategies – including market sizing and segmentation, customer, brand and media profiles, etc. Once these elements have been compiled, media currencies can then be used for detailed media planning and purchasing.
Shoprite Group recycles sanitising wipes
The Shoprite Group is recycling wipes from its 328 supermarkets nationwide. The wipes, which are green to identify them as 100% recyclable polypropylene, are used to sanitise baskets and trolleys and are sent for recycling after use. The bucket container and all stickers on the bucket are also 100% polypropylene and recyclable. It is estimated that 129 billion face masks and 65 billion plastic gloves are discarded every month, globally. Since the onset of the pandemic, retailers have been faced with a number of environmental challenges including a massive increase in the quantity of wipes. For the Shoprite Group, this has amounted to tens of thousands of kilograms a month. The Group partnered with Sani-Touch to provide it with 100% recyclable wipes and has embarked on a programme to isolate used wipes and make sure it is sent for recycling rather than being thrown away with general waste and ending up in landfill.
App upgrade for agricultural marketplace
HelloChoice has upgraded its mobile app with new features for both agricultural buyers and sellers. The latest app version ensures better market access and prices for farmers, and faster product access and lower prices for buyers. Over 2,300 agricultural produce buyers and sellers have joined HelloChoice via its website and mobile app, trading over R150 million in the first three years. Specifically designed for South African market conditions, the HelloChoice mobile app instantly connects buyers in their stores and warehouses with sellers in their fields and packhouses.
Amazon has announced that it will not stop accepting Visa credit cards for UK payments later this week as had been planned as the two companies seek to resolve a dispute. In an email to customers, the online retailer said it was ‘working closely with Visa on a potential solution’. The move had been due to take effect on 19 January with Amazon blaming ‘high fees Visa charges for processing credit card transactions’ when it was announced last November.
Savage X Fenty, the direct-to-consumer lingerie brand founded by Rihanna, will open its first brick-and-mortar retail location in Las Vegas later this month, according to an Instagram post by the entertainer-entrepreneur published on Friday. Savage X Fenty, a lingerie brand that emphasizes confidence and inclusivity, is a joint venture between Rihanna and TechStyle Fashion Group.
A four-day working week six-month pilot programme has been launched in the UK. Participating companies and organisations will trial a four-day week with no loss in pay for employees based on the principle of the 100:80:100 model – 100% of the pay for 80% of the time, in exchange for a commitment to maintain at least 100% productivity. The trial is organised by 4 Day Week Global.
*Additional sources: Total Retail Report, Kantar.
This week in numbers
The Marketing Research Foundation (MRF) recently released the data of the first full year Marketing All Product Survey (MAPS), showing, for example, that 4.6 million people participate in Stokvels, with an average contribution of R710 a month. The data also indicates that there is a 96% cellphone penetration with an average of 3.8 phones per household. Other interesting stats include: while watching TV, 43% of the respondents are engaged with social media and 21% simultaneously listen to the radio. On the flip side, while engaged with social media, 41% are also watching TV, while 32% are also listening to the radio. Vodacom is the most used cellular network and Samsung, by a large margin, is the top cellphone brand. In terms of financial services, 69.2% of the population uses a bank. The most used financial institution, by a very large margin, is Capitec at 36% with an average client age of 33.
Meme of the Month
QUOTE of the week:
“One fundamental way retailers can optimise brand performance and buy-in, is by advancing hyper-personalisation by utilising consumer data to drive customised experiences,” said Leanne Goott, marketing manager of Mobile in Africa (MIA), on Retailing Africa.
|Nedbank IMC 2022 is presented in association with the Marketing Association of South Africa; and the conference is endorsed by the IAB SA. Book now at http://www.imcconference.com.|
Main image credit: Pepkor.
*Stocktake is a weekly roundup of current FMCG retailing and brand news, curated and edited by Retailing Africa Publisher & Editor, Louise Burgers. Keep the industry updated and send your announcements and news to: email@example.com.
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