Edcon’s flagship store, Edgars, has been struggling to find its place among modern South African consumers, who are enjoying shopping at international stores like H&M and Zara.

Earlier this month the company reported a quarterly sales decline. According to an article published by the Sunday Times, Edcon decided a few years ago to go with more fashionable expensive assortments and they forgot about their heartland customer, which is at the very centre of the business.

“If they are not selling the merchandise they have in their stores then they have to change their strategy, and Edcon appears to have been through some major changes,” Andrew Jennings, former president of Saks Fifth Avenue, GM of Harrods and MD of Woolworths, and author of Almost is Not Good Enough – How to Win or Lose in Retail, is quoted as saying.

Over the past decade, Edcon has struggled with leadership as its three CEOs have made some notable strategic blunders. The company has been in operation for 89 years. As of March 2017, Edgars had 1 343 stores including 187 stores in eight countries outside of South Africa.
Edcon has been selling off stores – the Legit store chains, with the exception of those operating in Botswana, were sold effective 29 January 2017 and the Edgars Shoe Gallery store chains closed during the 2017 financial year.

In addition, Edcon has closed 253 stores – but this has left the retailer with too many leases in malls and no brands to fill the empty space

According to The Sunday Times, the store has been trying to find a solution to this empty floor space and as such has introduced a coffee shop into its Eastgate Mall store called Made Café . This serves both to use up empty space and to act as a drawcard to the store, following the modern consumer trends.

Counting the cost of listeriosis

The 180 recent deaths due to listeriosis infection found in processed meat from its subsidiary, Enterprise Foods, could cost Tiger Brands approximately R425-million in legal claims.

The cost of suspending operations and destroying suspect food would be between R337-million and R377-million, and the company hopes to receive R94-million from insurers.

Tiger Brands has said it now intended closing its Clayville abattoir by the end of March, and had also suspended operations at the Pretoria facility that manufactures its Snax brand. This is in addition to the halting of food production at its Polokwane and Germiston factories, which was announced on 5 March.

In a company press statement released on 19 Marhc, Tiger Brands said:

On Thursday,15 March, Tiger Brands received independent laboratory testing results that confirmed the presence of Listeria monocytogenes in the physical plant environment at the Enterprise Foods Factory in Polokwane. Our independent testing confirmed the findings of the Department of Health for the presence of ST6 strain of Listeria monocytogenes in the environment. In addition, there was a positive detection of Listeria ST6 (LST6) on the outer casing of two samples. Whether this presence of LST6 can be said to have caused any illness or death remains unclear at present and testing in that regard is an ongoing process likely to take time.

The Department of Health did not find the presence of Listeria in their product samples. Tiger Brands closed the Polokwane and Germiston Enterprise factories on 4 March 2018. These factories remain closed while we undertake efforts to understand how LST6 came into our factory. All of the Enterprise ready to eat meat products have been recalled and are no longer available for sale.

Test results from March
Tiger Brands continued extensive testing of our products and production facilities beyond Polokwane and Germiston, and discovered the presence of very low levels of Listeria at the Pretoria meat processing factory. These results have been sent for whole genome sequencing to determine whether ST6 is present or not at the facility. The results will only become available in due course.

Although the level detected was well within the range of government standards for the presence of Listeria, Tiger Brands has taken the precautionary measure of closing the factory and has instituted a product recall of all Snax products manufactured at the Pretoria factory with immediate effect. In addition, we will be sending samples for genome sequencing to establish the specific strain of Listeria.

Given the suspension of operations at the Polokwane, Germiston and Pretoria sites, which are the primary recipients of the production of the Company’s Clayville abattoir, operations at the Clayville abattoir will be wound down with the objective of suspending operations completely at the end of March 2018.

“At Tiger Brands, we promised our stakeholders that we will not compromise on quality, safety and internal controls. These are values and principles that I have actively communicated since being appointed CEO 18 months ago. It is therefore devastating that despite this focus and ensuring that we more than meet legislated industry standards, test results show that Listeria ST6 has been found in the environment at our Polokwane facility. The Department of Health has reported that people have lost their lives as a result of Listeriosis and according to the Minister of Health, 90% of these are as a result of LST6. Although no link has, as yet, been confirmed between the presence of LST6 at our Polokwane plant and the loss of life I deeply regret any loss of life and I want to offer my heartfelt condolences to all those who have lost their loved ones. Any loss of life, no matter the circumstance, is tragic.” says Lawrence Mac Dougall, CEO of Tiger Brands.

“We acknowledge that we are dealing with a national crisis and want to assure the public that in the event that a tangible link is established between our products and listeriosis illnesses or fatalities, Tiger Brands will take steps to consider and address any valid claims which may be made against it in due course.”

“During this period of investigation and discovery we have decided to be extra cautious and to take immediate precautionary action when traces of Listeria are detected where they are not expected. We are investing all our time and energy into not only understanding the cause of the LST6 detection, but also how it could have come into our facility. Local and international experts are helping us put measures in place to prevent this happening again in any of our meat processing facilities. While every effort is being made to get to the bottom of this outbreak it will take time to complete our investigation.”

“Tiger Brands is working with a team comprising some of the world’s leading local and international scientific experts in listeria management. Our Polokwane, Germiston and Pretoria factories are undergoing an extensive deep clean of all the equipment, machinery and some structural upgrades of the facilities with the view of ensuring that our facilities exceed the highest, best practice standards for meat processing facilities. We will continue to work closely with the Capricorn and Ekurhuleni Departments of Health as we progress with these remedial actions.”

“Listeriosis is a complex and global challenge with increasing outbreaks and mortality rate caused by a variety of food sources. Other potential sources of listeria may well exist and hence a country wide response is needed to address the tragic consequences of listeriosis. A sustainable national solution for South Africa will only be achievable through a collaborative multi-sectoral approach involving industry, government, regulators, scientific experts and civil society groupings.”

“A key focus will need to be reviewing and revising the current standards to take into consideration the unique South African context. Tiger Brands would like to be at the forefront and play a leading role in this initiative,” concludes Mac Dougall.



By Jason Milford for Centurion Rekord 

This week, a group of Centurion businessmen demanded to know why a “stationery supply” company got a tender from the metro to fix a massive sinkhole in the area.

The group is involved in a class action suit against the metro, which they accuse of dragging their feet in repairing the sinkhole at the intersection of Jean Avenue and Gerhard Street.

Jacques Classen, the attorney representing the class act, said there is reason to believe that the incorrect measures were followed to appoint the contractor, Gaborena.

Classen wanted to know why Gaborena would need a sub-contractor while they are appointed as the main contractor.

“According to Gaborena’s main object and purpose describing their business, they mainly supply stationery and manufacture wooden and woven products,” said Classen.

Classen also said the metro must prove they followed the correct procurement procedures and processes to appoint Gaborena.

The class act also wanted the metro held liable for contempt of court for not supplying documentation.

Mayoral spokesperson Sam Mgobozi said the metro is aware of Gaborena’s appointment of a sub-contractor.

He said it was not unusual for service providers to do so.

Mgobozi also said the metro had to broaden its scope and network to appoint an appropriate contractor for the sinkhole.

© Centurion Rekord

1 April: 4 major taxes are coming

While analysts praised former finance minister Malusi Gigaba for a budget speech that steered clear of any shocks or nasty surprises, there are still a number of big changes that will hit South African pockets come April.

VAT hike

Arguably the biggest of these is the increase in the effective VAT rate, which will rise from 14% to 15% adding approximately R22.9 billion to the fiscus.

Bruce Fleming, a financial planner with Old Mutual Private Wealth Management said that the increase was a tough political decision – but said it was important to remember that it is the first such adjustment since 1993 and was therefore overdue.

However, Fleming warned that all households will feel the pinch of the increase, and while zero-rated food items will take some of the increased burden off the poor, there has been no further developments as to whether more items will be added to the basket or even if additional items will be introduced at all.

Fuel levy

Commuters are expected to feel additional pain from 4 April with an increase in the fuel levy – although this increase could be slightly offset by a stronger rand and lower oil prices.

From this date the fuel levy will be increased by 52c per litre on 4 April, pushing up the general fuel levy to R3.62 per litre of petrol, after a hike of 30c per litre last year.

“This is quite significant as it will place an extra burden on all road users especially on those who mostly rely on public transport and will ultimately have an effect on inflation,” said Fleming.

Sin taxes

As expected there was another increase in sin taxes and South Africans will pay between 6% and 10% more for alcohol, while smokers will be paying 8.5% more to sustain their habit.

Fleming said that this is expected to bring in an additional R1.33 billion in revenue in the 2018/19 financial year.

However, the increase in South Africa’s sin taxes are also particularly notable this year, given the recent push towards further legislating both alcohol and smoking regulations.

This means that we could see both a ban on public smoking and an increased drinking age (from 18 to 21) by the next budget speech.

‘Not Wealth’ taxes

“Income tax for the higher earners will continue to squeeze them as there is no relief for inflation in the top four tax brackets,” said Fleming.

“While the bottom three personal income tax brackets as well as the primary, secondary and tertiary rebates will be partially adjusted for inflation through a 3.1% increase, the top four brackets will remain unchanged.”

Despite not seeing a direct increase in the higher wealth brackets, the budget was notable in the amount of ways it plans to indirectly tax wealthier South Africans.

This includes an increase in estate duty from 20% to 25% for estates worth R30 million or more, an explicit tax on smartphones, and an increase in the tax on vehicle prices.

Source: Supermarket & Retailer

The recession that never happened

The South African economy grew 3.1% during the fourth quarter compared with the previous quarter — putting growth for the year at 1.3%, beating Treasury’s and other forecasts.

Compared with a year earlier, gross domestic product (GDP) increased by 1.5% in the fourth quarter of 2017.
Treasury had expected growth of 1% for the year.

The largest positive contributor to fourth-quarter growth was the remarkable recovery in the agriculture, forestry and fisheries sector, which increased 37.5% and contributed 0.8 of a percentage point to GDP growth.

The trade, catering and accommodation industry grew 4.8% and contributed 0.6 of a percentage point.

The primary sector (which includes agriculture and mining) increased by 4.9%, the secondary sector (manufacturing, electricity and construction) grew by 3.1% and the tertiary sector (trade, transport, finance, government and personal services) grew by 2.7% compared with the third quarter.

This signals that the country’s economy is poised for a recovery.

It is a vast improvement on the dismal 0.3% GDP growth achieved in 2016 but still remains weak by the country’s historic standards.

In the third quarter, the economy grew by 2% quarter on quarter, demonstrating a resilience that suggested it was in better shape than most economists had previously thought.

Expenditure on real GDP increased by 3.1% in the fourth quarter of 2017, while final consumption expenditure by general government increased by 1.3%.

Treasury is forecasting growth to rise to 1.5% in 2018 on political and policy certainty, renewed confidence and rising private fixed investment.

Finance Minister Nhlanhla Nene said on Monday that it was likely that the growth forecasts would be revised upwards due to improved business and investor confidence.

Growth for 2016 was revised up to 0.6% from 0.3%.

Third-quarter GDP growth in 2017 was revised higher, from 2% to 2.3%.

The changes were based on better access to data sets, said Statistics SA deputy director-general Joe de Beer.

The revisions indicate that SA wasn’t actually plunged into a recession last year. A recession is based on two consecutive quarters of negative growth.

The performance in the fourth quarter of 2016 has been revised from a 0.3% contraction to growth of 0.4%.

By Sunita Menon for Business Day

Tiger Brands has asked consumers to remove any Enterprise ready-to-eat meat products from their fridges and place it in a plastic bag – away from other foods.

The reputational damage suffered by Tiger Brands following the outbreak of listeriosis that has claimed 180 lives in South Africa since last year is likely to hurt the diversified food giant’s balance sheet over the short to medium term only, analysts said yesterday.

Ron Kiplin, a portfolio manager at Cratos Wealth, said yesterday it would take Tiger Brands some time to turn operations around after Health Minister Aaron Motsoaledi identified its Enterprise Foods factory in Polokwane as the source of the food-borne disease.

“They (Tiger Brands) appear not to have had the right controls in place, and it is an indictment on operational management,” he said, adding that operational management at the factory had to be held accountable, although the buck stopped with top management.

“They need to hold a proper inquiry to be able to tell their customers they have the right controls in place, otherwise the reputational damage will continue for longer,” he said.

Kiplin said the company’s processed foods division was likely to take a knock, but it would not have a major impact on group profits, because Tiger Brands was highly diversified.


Chris Moerdyk, a corporate marketing analyst, said although the immediate damage to the brand was enormous, it was likely that it would recover.

Moerdyk said wealthy people would start moving away from processed meats.

“The bulk of their market is people in the lower economic group,” Moerdyk said. “This group of people buy processed meat because it is cheaper. Polony is almost a staple food for many poor South Africans. They do not have alternatives.”

He said the damage to the brand would be limited to the medium term.

“Not long ago, Ford Kuga cars burnt and killed people. Ford is now back to sales of before that period. People thought that the Ford Kuga would not sell again, but people continue to buy the cars,” said Moerdyk.

Tiger Brands recalled its processed food products and halted production at its factories in Polokwane and Germiston after the report by Motsoaledi.

The move prompted Mozambique, Zambia, Malawi and Botswana to ban cold meat imports from South Africa.

Bomikazi Molapo, a spokesperson for the Department of Agriculture, Forestry and Fisheries (Daff), said the department would not be involved in the disposal of the processed meat products.

“The recall was instituted by the National Consumer Commission, and the suspension by the Department of Health. Therefore, the Daff will not be involved in the disposal of the products,” said Molapo.

By Dineo Faku for IOL

New Public Enterprises Minister Pravin Gordhan on Tuesday revealed that his immediate focus would be on revitalising state-owned entities (SOEs) and reversing the tide of state capture that has gripped key sectors of the economy.

The appointment of new boards at several public entities, including operational changes, was expected in the next three weeks, Gordhan told members of the Federation of Unions of South Africa (Fedusa) at a conference in Pretoria.

“It won’t be an easy task, nonetheless it is not impossible,” he said, adding that change was expected in state power utility Eskom following the appointment of a new board.

“There is a huge need to restructure the state entities to function in the public interest, not just to serve a few people,” said Gordhan.

The financial management of public enterprises such as Eskom, South African Airways and rail agency PRASA has been blamed for putting pressure on the fiscus, with billions of rands in guarantees extended to the entities to help them stay afloat.

“A good team at Eskom needs to assure South Africans that they would work to keep costs under control,” he said. “Given 3 to 6 months, we will begin to see some positive signs.”

‘Tough ride’

Gordhan, who was named public enterprises minister on February 26, stressed that rooting out corruption and transforming state-owned enterprises was going to be a “tough ride”.

Treasury has issued R350bn in government guarantees to Eskom, of which over R200bn has been utilised, as the troubled state power utility has battled to rein in bulging operating costs.

The poor state of Eskom’s financial affairs has seen its long-term corporate rating downgraded by Moody’s in November to Ba3, a third notch below non-investment grade.

The ratings agency placed Eskom on review for a further downgrade.

Late last month rival ratings agency S&P downgraded Eskom’s long-term debt to ‘CCC+’, the seventh rung of non-investment grade, with a negative outlook.

Gordhan said he anticipated that those involved in state capture would try to “sabotage” efforts of reversing the damage and transforming the state.

“The damage is not something that happened overnight […] we are on a good wave in South Africa and it is possible to re-capture the state and re-orientate these institutions,” he said.

By Sibongile Khumalo for News24

The Gauteng government has unveiled the first details for its new PWV15 highway.

Speaking on the tabling of the provincial budget on Tuesday (6 March), Gauteng finance MEC Barbara Creecy said that the develoment will form part of a significant investment into infrastructure in the Ekurhuleni municipality.

“The Gauteng department of transport will receive R6.4 billion in infrastructure money over the medium term.

“The most significant project to start in the design phase this year is the PWV 15, the first brand new Gauteng Highway to be built since the 1970s,” Creecy said.

R250 million of this is expected to be spent during the design phase of the highway in the current financial year, she said.


While details on the highway were relatively light in the budget itself, Creecy reportedly told journalists in a media briefing ahead of her address that the PWV 15 highway would run east-west, reports BusinessDay.

“This will help facilitate and enhance the Aerotropolis in Ekurhuleni and the first phase is going to be dealing with the roads around the OR Tambo international airport and the city of Johannesburg,” she said.

“The intention is to try and cut out the Gillooly’s interchange because any of you who travel in the early morning or late afternoon in that area would [know] that it is an area of very intensive congestion. This is particularly when all the trucks and freight vehicles move into that area.”

Gauteng had previously outlined its plans for a new highway and other infrastructure developments as part of its new Aerotropolis corridor.

The corridor promises to host an number of major ‘catalyst projects’ including new commercial, retail and logistics hubs, as well as a number of upgrades to the surrounding areas.

Source: Business Tech

Paper notebook goes high-tech

You’ve probably seen a few of these smart paper or smart pen things over the years — write in this special notebook and it gets saved to an app, that sort of thing. A new entrant to this niche space is the Everlast notebook, which obviates the necessity of restocking proprietary paper in that its pages can be wiped clean with a damp towel.

No, to answer your first question, it’s not a tiny whiteboard. The Kickstarter page is very clear on that:

The 36 pages (or 32 on the large-format version) are a “waterproof synthetic poly blend,” which when written on with a pen from the Pilot Frixion line can be wiped off over and over again, but only with a wet towel — normal rubbing won’t do it. It’s important to use the Frixions because they use an erasable ink that comes off the page completely (you can also just use the eraser for quick edits).

When you’ve written on the Everlast, you can then capture images of the pages quickly with the Rocketbook app. The Rocketbook, by the way, was the notebook the company funded earlier this year, which you erased by putting it in the microwave with a glass of water for a while and then vacuuming up the ink. Yes, really.

Your notes and sketches aren’t stuck in this random app, though: it’s just for scanning. When you snap pictures, it crops and processes the image and then sends it to the cloud services of your choice.

The clever bit is that you don’t even need to fiddle with the app to do that. You select the services each page should go to by marking them at the bottom. The symbols look more like Lucky Charms marshmallows, but you’ll get used to it. You can send stuff to Dropbox, Evernote, Google Drive, Box, Slack, or to an email address.

A couple minor caveats: the creators are honest about the fact that if you’re left handed and tend to drag your hand along what you’re writing, you’ll probably smudge it, since the Frixion ink takes several seconds to bond to the “paper.” And if you leave the ink on the page for more than 2 months, they say, it’ll leave a faint trace.

The Everlast isn’t going to change the world, and it isn’t for everybody, but this is a cool way to do the analog-digital thing these other notebooks do, for cheap ($34 for early birds) and without actually using any paper.

By Devin Coldewey for TechCrunch

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