Stocktake: Retailers need to work harder this Black Friday
Black Friday could show growth of 40% this year, but challenges remain on this important shopping day on the annual retail calendar.Monday, 15 Nov 2021
Black Friday, the annual shopping highlight on the retail calendar, will be happening on November 26, with DPO South Africa predicting growth of 40% (or even a little higher); but not without its challenges.
Black Friday 2021 set for growth despite challenges
DPO South Africa’s top seven predictions for this year’s Black Friday, are:
- Total 2021 spend is expected to be similar to 2020, or even a little up, partly due to local shoppers’ increasing comfort with e-commerce.
- Retailers will have to work harder to capture hard-earned disposable income (savvy shoppers will do their research and compare prices).
- Meaningful discounts will be needed – 10% won’t suffice. Retailers will have to put forward the mind-blowing deals that first made Black Friday a showstopper.
- Growing popularity and trust in BNPL could entice customers to spend a little more than they otherwise would.
- Contactless payments like Apple Pay, Samsung Pay and other mobile options will see good growth, especially with the support of 3D-Secure 2.
- Domestic travel and tourism is a likely winner as people look to get out of the house and into the worl,d but international travel remains complicated.
- Supply chain and logistics should hold up, but companies must pay close attention to their logistics ahead of the retail holiday.
New retail experiences for Nelson Mandela Square
Nelson Mandela Square shoppers now have access to Artyli, Bellagio, Bell & Ross, Nom Nom, Pars Jewellers, Roberto Botticelli, The Raj and Strada. Art, jewellery and designer apparel are among the new attractions, which include a new restaurant offering traditional North Indian cuisine. Combining elegant retail and fine living, many of the new offerings are unique and a first for the country’s luxury capital. Said general manager Preston Gaddy: “These flagship stores promise to create even more memorable moments.”
Tiger Brands to list on A2X
Tiger Brands Limited has been approved for secondary listing on A2X Markets and its ordinary shares will commence trading on the stock exchange from 26 October 2021. Tiger Brands will retain its primary listing on the Johannesburg Stock Exchange (JSE) and its issued share capital will be unaffected by its secondary listing on A2X. A2X is a licensed stock exchange that provides a secondary listing venue for companies. As one of Africa’s largest listed manufacturers of fast-moving consumer goods (FMCG) founded in 1921, its portfolio includes iconic brands such as All Gold, Black Cat, Albany, Koo, Jungle Oats, Oros, Tastic, Mrs Balls and many more. Tiger Brands CFO Deepa Sita said, “Our listing on A2X provides our shareholders with the choice to transact our shares on an additional platform and capture the benefits it offers. In addition, it supports the development and growth of a healthy capital market in South Africa”. The listing will bring the number of instruments available for trade on A2X to 57 with a combined market capitalisation of about R5 trillion. Tiger Brands joins other well-known South African retail and FMCG companies on the exchange, including Ascendis Health, AVI, Mr Price and Famous Brands. A2X has listings from several key sectors, including media, property, technology, mining, banking, retail, FMCG, financial services, insurance, healthcare and telecommunications.
TFG joins forces with TymeBank
TFG Financial Services announced a new initiative with TymeBank which will allow them to integrate an end-to-end financial service offering into the retail environment, both instore and via digital platforms. “During the course of 2022 we expect to have 600 kiosks rolled out to our stores offering various financial products and services, including a TFG / TymeBank branded debit card,” says TFG CEO Anthony Thunström. TymeBank, which is backed by African Rainbow Capital, has more than 3.8 million bank account customers. “Currently TFG offers store card credit facilities to enable merchandise sales, but this strategic partnership with TymeBank will allow us to expand our product offering to meet customers’ changing needs throughout their financial journey,” explains Jane Fisher, group director TFG Financial Services. “The first service to be launched later this year will be in our JET stores and will be the MoreTyme product, which is an interest free ‘buy now pay later’ product. Customers will also be able to pay for merchandise in store through the use of a barcode. These types of payment plans are already hugely successful in England and Australia and give customers far greater choice of payment options.” Moretyme will be rolled out to remaining TFG stores next year.
Starbucks opens more kiosks with Checkers FreshX
Fresh new Starbucks South Africa retail experiences have launched inside the Checkers FreshX Zambezi Junction supermarket at Breed Street, Montana Park, Pretoria; and inside the Checkers FreshX Chartwell Corner supermarket. This is the latest expression of the Starbucks and Checkers FreshX partnership, which aims to bring the Starbucks experience closer to home. The Starbucks kiosk features the full range of Starbucks hot and cold beverages and a selection of treats, including brownies, macarons, and the famous Chocolate Brownie.
SA’s biggest indoor go-kart track opens at Eastgate
South Africa’s biggest indoor go-kart track has opened at the Eastgate Shopping Centre in Johannesburg. The new IndyKart track offers thrill seekers 475 metres of exhilarating track to zoom around, with 14 brand-new Sodi RT8 Karts. With no less than 13 corners of various technical levels, this track is perfect for the pro’s and forgiving enough for first-time drivers. The new IndyKart track at Eastgate boasts smooth concrete, which results in an impressive 50 second average lap time at a maximum speed of 65 km/hour. All go-karts can race on the track simultaneously, making this the ideal venue for birthday parties, team buildings, family days out; or simply a great day out that includes pulse racing adrenalin. The track is open to children from the age of nine years old, or those with a minimum height of 1.4 metres. “Go-karting has soared in popularity in the last few years and provides a fun experience for the whole family,” Kelly Belman, general manager for Eastgate Shopping Centre, commented.
John Lewis has opened a “school of service” to teach staff to provide a better customer experience amid criticism that standards in stores have deteriorated in recent years. There are plans to retrain 500 staff before Christmas, in hopes a renewed focus on helping shoppers will boost sales. The school is located inside the John Lewis store in Stratford, London. If the voluntary programme proves effective, John Lewis could expand the school to other parts of the country, as well as to its sister supermarket Waitrose.
People spending more time at home has led to an influx of kitchen gadgets. The annual national survey from BBC Good Food Nation has revealed half (52%) of people surveyed have bought new cooking or kitchen equipment in the last year. Coffee machines were the most popular gadgets, bought by 13% of people surveyed, and they were the most used purchase, with barista-style coffees being made an average of five times a week.
Austria is set to restrict entry to many public places for anyone not fully vaccinated against the coronavirus. Under new rules that go into effect nationwide next week, those who cannot provide proof of full vaccination will not be allowed to enter places like restaurants, bars and hairdressers. Unvaccinated people will also be barred from hotels, events with more than 25 people and ski lifts. The latest restrictions come as Austria reported a near-record 9,388 cases last week.
Marks & Spencer will this week warn that shortages of some of its clothing and homeware ranges will last until spring amid supply chain chaos and increasing cost pressures. The retailer is expected to reassure shoppers that it has good food availability in the run-up to Christmas.
Brazil’s sugar exports reach its highest level, with doubling supplies to China, says IndexBox, which has just published a new report: Brazil – Sugar – Market Analysis, Forecast, Size, Trends and Insights. From January to August 2021, Brazil exported 23.7M tonnes, which was 26% larger than in the same period of 2020. This year, China’s sugar purchases from Brazil have doubled, reaching 4M tonnes. Shipments to Algeria, Nigeria, Saudi Arabia, Malaysia, Canada, and the United Arab Emirates have also grown sharply.
*Additional sources: Kantar, IndexBox, Total Retail Report.
This week in numbers
Tetra Pak is investing R500 million to upgrade and increase the production capability of the packaging material factory located in Pinetown, KwaZulu-Natal. The upgrade will take place over a period of several years, commencing in the first quarter of 2022. The announced plant upgrade will add many benefits to many sectors in the liquid food industry value chain; and will increase Tetra Pak’s production capacity allowing it to extend its reach to serve more customers in the Southern African region; and will also allow the production of the latest packaging formats using state-of-the-art technology. Waqas Ali, factory director at Tetra Pak South Africa’s Pinetown plant says: “The upgrade will enable an increase to 80% in local content. This will not only assist the local supply chain but lead times for delivery to clients will also fall considerably – in some cases dramatically.”
QUOTE of the week:
“The mobile device is commerce’s future pivot on which the whole customer experience (CX) will be shaped. While mobile shopping won’t ever fully replace the physical shopping experience, m-commerce has become the new heartbeat of our retail journey,” said Leanne Goott, marketing manager of Mobile in Africa, on Retailing Africa this past week.
Main image credit: Nelson Mandela Square.
*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: firstname.lastname@example.org.
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