Tag: consumers

SA festive spend predicted to hit over R250bn

Source: Supermarket & Retailer

Research by short-term lender, Wonga, has revealed that South Africans will each incur an average of R6 585 in festive expenses this summer, over and above their usual budgeted expenses.

Based on Statistics SA’s mid-year population size estimates, working aged South Africans are set to pump R254-billion into the economy, an increase of 24% from last year.

As part of Wonga’s Festive Spending Survey, almost 6 000 South Africans shared what they plan on doing these holidays, who they plan on doing it with and how much they intend to spend.

“Our research revealed that 60% of people think they’ll spend more this festive season than they did in 2018, despite the tough economic climate. However, rather than turning to debt, the majority have either saved throughout the year or plan on using their end of year bonuses to manage the extra expense,” explains James Williams, Head of Marketing at Wonga.

This is Wonga’s second annual Festive Spending Survey and, when compared to last year’s findings, reveals that South Africans intend on spending an average of R880 more than they did last year. This includes costs such as gifts, holidays, entertainment, transport, food and drink.

Festive budgets

The research revealed that 76% of South Africans spend more than usual over the festive season, with food and drink taking up 37% of most budgets at an average cost of R2 430 per person. This is followed by gifts which account for approximately 20% of festive budgets, with South Africans forking out over R1 200 to spoil their loved ones.

In total, respondents expect to spend an average of R6 585 each, which is almost half (46%) of the average South African’s ‘take home pay’. This is based on Bankserv Africa’s latest index, according to which South Africans take home an average of R14 385 each, after tax. This represents a significant increase from 2018, when festive budgets made up just a third of the average ‘take home pay’.

Half of the respondents indicated that they dislike the pressure to spend money over the festive season. To cope with the extra expense, the majority (45%) plan to draw from their end-of year-bonuses, or dip into their savings (42%) or stokvels (25%). Only a small portion plan on either taking out a loan (17%) or spending money on their credit cards (11%) to get them through the holidays.

Travel plans

Only one in three South Africans have festive season travel planned this year, a 5% drop from 2018, with most people (33%) citing the cost of travel as their main reason for staying home followed by work commitments (27%).

Of those leaving home for the holidays, Durban emerged as the most popular holiday destination for the second year running, followed by Cape Town. Most people (58%) will be travelling to visit family or friends, with only a small portion visiting places because they offer peace and quiet (17%) or natural beauty (12%). The bad news for those hoping to avoid traffic chaos this year is that the vast majority (60%) plan on travelling by car.

Festive gifting

Nine in ten South Africans plan on buying gifts this festive season and, while the majority (83%) plan on spoiling their family, 22% also plan on buying themselves a gift this Christmas. At the top of most people’s Christmas lists, money (34%) and vouchers (26%) emerged as the firm favourites again this year.

Although the popularity of traditional stores has declined by 6% since 2018, 75% of shoppers still prefer to visit brick and mortar stores in search of gifts, with only 13% planning to do their shopping online.

Festive celebrations

78% of South Africans’ favourite way to celebrate the festive season is by spending time with loved ones. Having a braai emerged as the most loved festive tradition for 47% of respondents, making it 10% more popular than a traditional Christmas roast.

Only 57% of South Africans have work parties or functions planned to mark the end of the year and the vast majority look forward to celebrating with their colleagues. However, for 18% this excitement is replaced with indifference either because they find their year-end functions boring (35%), don’t enjoy socialising with their work mates (20%) or resent having to spend money on gifts, clothing or food for the occasion (24%).

“It’s clear that most South Africans have a bumper festive season planned and, while it’s great to see so much holiday cheer, people should be careful not to get swept away in the excitement and wind up spending more than they can afford. Remember, the best gift that you can give to yourself and your loved ones is starting the new year on a strong financial footing,” concludes Williams.

Quick facts:

  • Festive spending to increase by 24% this year, with South Africans budgeting an average of R6 585 each over this period.
  • Just under half of working South Africans rely on a thirteenth cheque or bonus to tide them over the festive season.
  • Two thirds of South Africans won’t travel this festive season, with most claiming it is too expensive.
  • 50% of South Africans don’t like the pressure to spend money during the festive season.
  • Durban is still the most popular holiday destination amongst South Africans.
  • Despite the popularity of traditional shops dropping by 6% from 2018, 75% of South Africans still prefer brick and mortar stores to buying Christmas gifts online.
  • Money and vouchers remain the most popular gifts for 60% of South Africans.
  • South Africa’s favourite way to celebrate the festive season is with their family and friends.

The role of mobile technology in retail

By Sandra Wrobel-Konior for Business2Community 

Technology is changing the way most industries do business, and retail is no exception to the ever-evolving advancements. Although some are afraid technology may be hurting the retail industry by moving everything online.

If you take a more in-depth look into the situation, you’ll see that tech is actually helping retail stores to grow and expand their expertise. There’s a number of new technology systems that are being implemented, and are worth consideration to remain a top competitor in the heavily competitive retail market.

Connecting with your shopper
According to a study conducted by CMO, 54 percent of retailers put customer experience in the number one slot on their priority list.

Beacon technology made its presence felt in the retail industry in 2017 for this reason. They are small devices placed at the front of the store and throughout to allow interaction with customers as soon as they walk through the door. They connect and send a signal to a customer’s Bluetooth capable device, and send highly accurate, relevant information and in-store offers in real-time to create a greater personal shopping experience for the customer.

A study done by Swirl states that 70% of shoppers who received beacon-related content on their phones agreed it increased their likelihood of making a purchase, showing impressive sales results for companies. These small devices are similar to online shopping apps, which allow customers to digitally connect to in-store deals conveniently from their mobile device to plan their shopping experience around real-time in-store offers as they shop.

The online consumer is looking for a great deal just as much as the in-store consumer, and it’s important to provide both with a superior experience.

Retailers also often turn to online checkout tools to help streamline the online shopping experience for consumers. With online shopping becoming the main avenue for all forms of shopping, it’s important for merchants to have a safe and secure checkout system for their online customers.

Modern systems create an efficient transaction process done entirely on the product page. It is hassle-free and user-friendly (recognising various languages), and does not push customers to a third-party site or payment service.

This approach also makes it convenient for consumers to order right from their mobile devices and provides a higher level of security; an important feature in the digital age.

Sensing your customer
74 percent of firms want their operations to be data-driven, but seldom follow through, with only 29 percent applying analytics to their internal processes. If implemented properly, consumer analytics tools could improve this statistic. They prove to be a major asset for merchants to track customer behaviours and better understand relevant trends.

These tools use a sensor that recognises and tracks the number of customers that come into a store, and narrows that data by month, week, or day to give a short-term insight into foot-traffic.

Other kinds of technology within the realm of these complex tools include the ability to track online orders to measure which items are in demand, and which items can be eliminated from the stores’ stock costs. By 2021, 85 percent of retailers plan to use intelligent automation like this to further improve their supply chain plan and eliminate increased costs.

Keeping it together with tech-driven organisational tools
The Internet of Things (IoT) has created an important opportunity for retailers to integrate a major type of technology into their operational strategy. All smart devices are connected thanks to the IoT, so the integration of the online retail shopping experience is a viable strategy for companies to capitalise on a broad connection to consumers.

For example, the IoT enables a shopper to scan or search for a product to be connected to the detailed information provided by the merchant about that product. The consumer then has access to relevant reviews and feedback for the specific product to help make more informed buying decisions.

In the long run, this helps increase sales and consumer retention, by providing shoppers with helpful services and information, thereby improving their buying experience.

Tech-driven internal organisational tools also make an impact on customer experience by starting at the source and improving internal retailer functions. Resource planning cloud systems that automate manual tasks help companies zero in on the strategic initiatives that propel the business forward. They also organise financial operations and leverage real-time consumer-related data for insights that improve decision-making and performance management.

Having strong internal operations rely heavily on tech-driven tools to meet customer demands and remain future-proof, especially in the modern digital age.

Takeaways
Depending on the type of store you operate, different technological tools may be more worthwhile than others. What matters is establishing a brand that customers can connect with.

In this day and age of social media and the internet, simple tech-driven strategies can help consumers to feel connected to a brand online, prolonging company success.

Below is a summary of what we covered and how technology plays a role in retail:

  • Customer experience should always be a top priority in the retail space.
  • Technology-driven tools improve buyer experience and increase efficiency.
  • Technological advancements in retail are lucrative to future growth in the digital age.
  • Internal operations need to be streamlined in order to reflect positively on customer experience.
  • The utilization of consumer data can have a major impact on a company’s success.
  • Consumer data-driven strategies rely on tech tools to ensure relevance and accuracy before the implementation of new strategies.

Source: Supermarket & Retailer

Are you constantly checking your phone when you’re out and about? Do you have trouble resisting the lure of ever more screen time? If so, be careful when you go grocery shopping – as your phone may be costing you more than you think.

A recent study suggests that grocery shoppers who use their phones in the supermarket end up spending, on average, 41% more than those who don’t.

This may sound counter intuitive. Previously, many bricks-and-mortar retailers have regarded shoppers’ smartphones as a distraction – or worse. They worried that customers who paid attention to their phones spent less time looking at enticing product displays in the store, or might use their phones to search for better deals online.

To find out if these fears were justified (specifically when people go grocery shopping) a team of researchers conducted an experiment. We placed special eye-tracking glasses on more than 400 shoppers, who then went about their shopping as usual.

The glasses allowed us to see precisely what the shoppers were doing when they were shopping – and what they looked at. Some of the participants were encouraged to use their mobile phones, while some were asked to put them away for the duration of their shopping trip.

It turned out that the effect is ultimately the opposite of what we might have thought. Shoppers who checked their phone while shopping spent on average 41% more at the till – and those people who used their phones the most also tended to spend the most money.

Inside a shoppers’ mind

The reason for this lies in the way the human brain works when we are shopping – and the vast amount of choices on offer.

Even a small grocery store may keep 10,000 unique products in stock, while large supermarkets stock many times that. It is impossible for the human mind to consciously process and choose between all these available items. We simply cannot cope with all these decisions, which means our brains are trying to simplify the complexity of a grocery store in different ways.

One way is to activate a kind of internal autopilot, which acts as a kind of shopping script, prescribing what we do and see in the store. Essentially, this means that most shoppers usually go to the shelves and sections they always go to, and buy the same products repeatedly.

Say, for example, that you regularly buy milk, chicken and bananas. Your inner autopilot will lead you between the points in the store where you know these items belong.

Similarly, if you are cooking food for a weekday dinner, you may have an inner script of what products should be in that. Products that are not part of that script are most often filtered away by your brain as irrelevant information.

After all, why would you be interested in looking at baking products when you are planning a quick shop for a stir fry, before getting home after a long day at work? All these products we do not consciously see do not stand a chance of getting into the shopping basket. The harsh fact is that shoppers are very habitual creatures – most of us vary our grocery purchases between fewer than 150 products a year.

Smartphone distractions

But something different happens when we pick up our phones. Whether it’s to make a call, send a text message, check social media or browse holiday destinations, our minds are forced to switch our very limited attention capacity from the shopping task to the phone.

As attention is distracted, the way shoppers behave in the store drastically changes. They suddenly walk more slowly and in unpredictable patterns, wandering along the aisles.

They find themselves spending more time in the store, and becoming more receptive to looking at a wider assortment of products as the autopilot has been interrupted. This means they (you) are less likely to filter off information regarding products outside the normal script and more like to be inspired to buy more of them.

In essence, shoppers who look at their phones spend more time in the store, look at more products, and buy more things. This is not necessarily a bad thing, as you may be reminded to buy products that are needed at home that were not on your mental shopping list – or you may be inspired to try a new ingredient.

But if you are conscious of sticking to your shopping plan and budget, then it may be best to keep your phone in your bag or pocket. Remember that an online friendly store – with free wi-fi or smartphone docking stations on trolley handles – may simply be landing you with a bigger shopping bill.

 

Print is still growing in Africa

GroupM, WPP’s world-leading global media investment group launched the Africa Media Index: its inaugural study on the media landscape in Africa. The study aims to provide insights on trends and knowledge of the media sector and how it affects investment, governance, local business and economies.

This study comprises data from 14 African countries, namely: Ivory Coast; Ghana; Nigeria; Kenya; South Africa; Uganda; Zambia; Namibia; Zimbabwe; Tanzania; Mozambique; Botswana; Angola and Ethiopia. It identifies trends that are relevant to industry investors looking to increase their footprint and reach multiple audiences in a meaningful way across Africa. The report focuses on five key categories which are Economy & Business; Media Landscape; Media Consumers; Technology; as well as Governance & Legislation.

Federico De Nardis, CEO at GroupM Sub-Saharan Africa (SSA), says, “Many companies – both those already on the continent and those wishing to reach consumers and businesses across Africa – often struggle to find consistent and reliable information which gives a clear understanding of the media landscape. The intention of the Africa Media Index is to bridge that gap.”

Africa’s media landscape is a whirlwind of change and growth in activity, and its power can be harnessed by knowledgeable investors. Sub-Saharan Africa hosts 17% of the world population today, but only represents 2% of world GDP, and even less when we look at advertising investment, which is USD 2.6 billion or 0.47% of global investments. However, due to mobile and Internet expansion, strong urbanisation and a booming middle class, the next 30 years should tell a very different story.

The media consumers and media landscape
While the African middle class population is growing impressively, so is their access to technology and media consumption. This is demonstrated through the rising sales of televisions, which now replace radio as a preferred purchase option in places where electricity supply is increasingly available.
Access to the internet also accounts for a large growth in the media landscape, however, internet use is restricted by high data prices in various regions. More than 83% of respondents believe online media is growing significantly, while 75% of them think radio, through internet broadcasting is on a high trajectory. However, the same respondents are also bullish on television, with nearly 62% of positive growth.
In addition, print media is experiencing positive growth, contrary to what is happening in the rest of the world. For example, in Kenya newspaper consumption has grown by 14% in 2018 versus the previous year and 12% in Nigeria according to ‘This Year Next Year’ report, by GroupM Global.

Governance and legislation
Media growth in Africa is beneficial and a contributing factor to deepening democratic processes. In recent years, political uncertainty dominated the business headlines where heightened political tensions saw a military coup in Zimbabwe, a widely disputed election in Kenya, and highly contested elections in South Africa and Nigeria. These might appear as isolated events but they are an amalgam of events that increased media interest in Africa.
Of the surveyed respondents, 49% of East Africans and over 36% Southern Africans think media corruption is “highly prevalent”, while 41% West Africans say the media is hopelessly corrupt. Corrupt state media, bribe taking journalists and self-censorship by the independent press were cited as examples of corruption.
As a result, the risk impact of changes in legislation and regulation has increased considerably as many African governments continue to implement laws governing information and ethical operations of businesses.

Economy and business
When investors seek media investment opportunities, a holistic knowledge of the investment environment is required, including the relevant forces at play in governance, local business and economies that affect the media sector. The sector is influenced by the society it services, and in turn the media influences the societies that hear, read and see its output.
Investment indicators, as opposed to business confidence, for Southern Africa are good overall. Leading in this is South Africa with an overall score of 65.97, which takes three of the top five positions in overall Economy and Business rankings. However Ghana (51.65), and Kenya (47.67), being in the top five, reflects a mixed regional picture. Meanwhile at the lowest of the spectrum on the continent is Mozambique, whose overall score is 34.89.

Technology advancements
One of the biggest challenges for African governments and media houses will be to close the media access gap between urban and rural areas. If this is left unattended, there is an increased risk of widening inequality between those who have access to a plethora of innovative and rich media options (TV and video in all forms: Linear, VOD, SVOD, OTT and all online platforms) and those who are not exposed to it.

Electricity is a necessity for new media expansion for all regions, and West Africa is seen prioritising urbanisation more than others. Southern Africa is viewed as prioritising fibre lines according to 17.66% of respondents, particularly with the South Atlantic Cable System arriving in the region. These respondents have however reported the highest data prices, with three quarters classifying prices as expensive and 33% say data is somewhat expensive, however 40% of them say it is very expensive.

“The 21st century new media wave has been driven by the African people as they are choosing preferred mediums and content. Investors in Africa’s media industries can be assured that African media consumers are the same as media consumers in other markets who are perpetually craving better media services that are interactive and advertising that is created to each market’s unique nuances,” concludes De Nardis.

Shoprite records gloomy Christmas sales

By Robert Laing for Business Live 

Shoprite’s share price fell as much as 5.7% to R175.32 after it warned shareholders its interim results would show flat sales.

Joining the queue of JSE-listed retailers reporting disappointing Christmas sales, Shoprite said its total group sales declined 0.3% in the December quarter, the second of its financial year.

The drop in sales in December quarter followed just 0.42% growth in the September quarter, which Shoprite blamed on teething glitches in a new Gauteng distribution centre and strikes.

Shoprite is scheduled to release its interim results on February 26.

“Liquor stores remain a standout performer with 20.09% sales growth for the period,” CEO Pieter Engelbrecht said in Tuesday’s operating update.

“The group’s core business, Supermarkets RSA, achieved 2.58% sales growth for the period. Persistently low internal food inflation in SA of only 0.2% for the period marks 18 months of near stagnant prices of basic foods in which the group has a larger market share,” Engelbrecht said.

“The core Shoprite middle income consumer base remains under pressure. This was evidenced in Christmas sales in categories such as back-to-school essentials, which outperformed traditional discretionary purchases such as toys for the first time.”

Source: Supermarket & Retailer

South African consumers have saved billions of rands in loyalty programme rewards offered and are increasingly taking advantage of their reward points given the country’s tough economic climate, which is having an impact on consumer goods including fuel, electricity and food.

According to Clicks customer marketing executive, Heloise Janse Van Rensburg, the Clicks ClubCard loyalty programme, one of the oldest, which was introduced in 1995, was doing exceptionally well, especially given the tough economic climate the retailer was trading in.

Janse Van Rensburg says this speaks to how the retailer’s ClubCard customers valued their cashback rewards.

“Our Clicks ClubCard has 7.5 million active members.We provide simple, easy rewards that are accessible and convenient to our customers. In 2017 alone, over R320 million was paid to ClubCard members in cashback rewards,” says Janse Van Rensburg.

She says ClubCard cashback could be used to pay for purchases in Clicks, Claire’s and The Body Shop stores.

Consumers have saved billions of rands in loyalty programme rewards offered and are increasingly taking advantage of their reward points.

Janse Van Rensburg added that ClubCard had an array of ClubCard partners like Shell, Discovery HealthCare, Sorbet, The Body Shop, Musica, SpecSavers and Execuspecs, City Lodge Hotel Group, Europecar and Netflorist where customers can earn further ClubCard points and benefits.

John Bradshaw, Pick n Pay’s head of marketing, says the Smart Shopper rewards programme was launched in 2011 to reward loyal customers, the retailer’s way of saying thank you to its customers.

Bradshaw says customer reaction to the launch of the programme exceeded Pick n Pay’s expectations and the retailer currently had more 7 million active customers.

He added that Pick n Pay modernised Smart Shopper early last year to introduce more personalised discounts and during this financial year, offered R3 billion in personal discounts to its Smart Shoppers.

“Accessibility is critical and we always look at ways to make this easier for customers across multiple platforms. We have already gone digital with the launch of our mobile app which as proved very popular. Innovation has played an important role in Smart Shopper’s success,” says Bradshaw.

He added that every Thursday, Smart Shoppers receive personal Just for You discounts on the products they buy most often.

“These are worth over R500 per customer per year. These personalised discounts are automatically loaded weekly for each Smart Shopper. Customers can claim these by loading the discounts onto their card at the Smart Shopper kiosk in-store, via email or on the Pick n Pay mobile app. The card is then swiped at the till with the qualifying products to get the savings. These personalised discounts have been well received with customers and over a million customers are using their personalised discounts,” says Bradshaw.

Woolworths says the Woolworth WRewards programme was not a traditional points based programme and customers enjoy instant savings at point of sale (POS) on their till slip and on the Woolworths App, product voucher offers and up to 3 percent Cash back when buying with their Woolworths Credit card.

Woolworths says the WRewards in its current format had been in operation since September 2010 customers have saved a total of R538m during the period June 26, 2017 to June 24 2018.

Consumers have saved billions of rands in loyalty programme rewards offered and are increasingly taking advantage of their reward points. Picture: Nabeelah Shaikh
“No other programme gives you the opportunity to give back via a Community Loyalty programme such as MySchool MyVillage MyPlanet. To date the MySchool MyVillage MyPlanet programme has given back over R570 since its inception in October 1997,” says Woolworths.

Week after week, there is always a petrol price hike threat to consumers in South Africa. Over a period of 10 years, the petrol price has fluctuated, increasing by a whopping 66% from R9,66 to R16,08. In the last 8 months of 2018, the price has increased from R14,42 to R16,08 inland.

The price hikes in 2018 alone placed a strain on the consumers and prompted the public outcry that led to the subsequent intervention by the government. The Department of Energy intervened after the Automobile Association (AA) of South Africa anticipated a drastic 23c to 25c per litre fuel price increase for the 5th of September 2018. The intervention led to the fuel price only increasing by 4.5c per litre.

According to Central Energy Fund calculations, local consumers could be hit by another bombshell as early indicators are that the fuel price could rise by R1.14 a litre in October. Making matters worse is the shock of the recession and the threat of downgrades by rating agencies.

OLX believes this directly affect more than three thirds of their users. “While OLX prides itself for making it super easy to buy and sell almost anything, our main source of traffic is price-conscious car buyers,” says Diana Mjojo, Communications Manager at OLX South Africa. “With the fuel prices going up again, this is a trend we don’t see coming to an end any time soon and we’re concerned about how it affects our users.”

9 out of the top 10 search terms for 2018 on the OLX platform are for the Cars & Bakkies category. According to the company, the OLX car buyer is financially savvy. They are willing to accept higher mileage vehicles if it means the price of the vehicle is lower.

Mjojo says OLX users are willing to save as much money as possible during these economically hard times. “Users will often pick the practical option over luxury, which may include older models, if it means the vehicles are cheaper. Not only are they conscious about the price of the vehicle but about the petrol consumption as well,” says Mjojo.

OLX advises consumers who aren’t already buying their cars on the platform to consider doing so as that is a smart way to save and set yourself economically free. “Whether you are looking for your first car, need a car to match your muscles or upgrading, OLX is a central place for you. We work with car dealerships that list their approved cars on the platform,” adds Mjojo.

Review of fuel levy ‘is possible’

By Bekezela Phakathi for Business Day

The possibility of reviewing the fuel levies downwards to ease the financial burden on motorists and consumers has not been ruled out, says President Cyril Ramaphosa.

“The fuel levy is part of fiscal architecture we have in our country … we have said we want to look at that … the fuel levy is precisely one of those we are looking at,” Ramaphosa said in parliament on Wednesday

“We are sensitive to the burden imposed on our people.”

The price of fuel recently went up to more than R16 a litre in inland provinces. The hikes are expected to have a ripple effect on the economy.

The price of a litre of petrol in SA has more than doubled in 10 years, while the levies increased from about R1.30 in 2008 to the current R5.30.

The fuel levy contributes close to R63bn annually to the fiscus. The Road Accident Fund levy accounts for R1.93 of the fuel price. Taxis and other public transport operators have already upped their fares in response to the increases.

Ramaphosa said any decision would have to weigh the advantages of reducing the fuel levy against the loss of revenue for the state, which will have an effect “on a whole lot of things”.

“It’s not as easy as snapping a finger and coming up with an answer … it’s one of those issues we continue to look at and seek solutions for.… We import a commodity we have no control of in terms of prices,” said Ramaphosa, during a question-and-answer session.

DA leader Mmusi Maimane had asked Ramaphosa whether there was a plan to reduce the fuel levy, which he called a “corruption tax”. “The RAF [Road Accident Fund] is declaring losses and money is being wasted. Is there a plan to reduce the fuel levy?” he asked.

Department of energy officials told parliament on Tuesday that any adjustment to the fuel levy could only take place in the next financial year.

The government has said before there is nothing much it can do to stem the fuel increases since the country imports the bulk of its requirements. The change in the price of petrol is typically a function of both changes in international exchange rates, particularly the US dollar-rand exchange rate, and the change in international crude oil prices.

Ramaphosa also answered questions on the unemployment crisis and the burning issue of land expropriation without compensation.

“Since 2009 I have heard about plans and summits, yet millions of South Africans are still unemployed,” said Maimane. “The definition of insanity is doing the same thing and expecting a different outcome or keeping the same people [in the cabinet] and expecting a different outcome.… Can we bring change so we can expect a different economic trajectory?”

Ramaphosa said the cabinet would soon announce details to stimulate economic growth, including finalising the Mining Charter and allocation of broadband spectrum.

“We want to unlock the levers that hold the economy back,” said Ramaphosa.

The president hit back at Maimane, saying: “I’ve not heard anything wise that you’ve said.… You are playing the people or the man, not the substantive issues that have to do with economic growth.”

Without land redistribution there would be no stability in the country, Ramaphosa said.

“Transformation means we must have redistribution of land because there was an injustice committed many years ago.… If you do not want stability then do not transform … but if you want stability then you must transform.… We will make sure that our country succeeds. Even the landowners must embrace this process,” he said.

How shopping is changing in a digital world

Shopping: love it or loathe it, a wave of innovation is heading this way – and it promises to make a visit to your local mall a far more productive and pleasant experience.

Deloitte is at the forefront of this trend with the creation of a Connected Retail Experience at its Deloitte Greenhouse innovation hub in Cape Town.

Shorter queues at checkout, a much better selection of goods, personalised, relevant special offers and the ability to have out-of-stock items delivered to your door within 24 hours. These are just a sample of the innovations coming to the South African retail sector that promise to make your shopping experience a whole lot more enjoyable and engaging.

That’s according to Corniel van Niekerk, senior manager at Deloitte, the professional services firm which is emerging as one of the key players bringing what’s known as ‘Connected Retail’ to South Africa.

“It’s an exciting time for consumers and retailers alike. Connected Retail technologies will not only make for a vastly improved shopping experience for customers, but retailers and suppliers who embrace and implement them effectively will see a significant boost to their bottom line. In this sense it’s a genuine win-win situation,” says Corniel.

So how could such a Connected Retail experience play out for you as a shopper? It may begin well before a visit to the store with an email, instant message or app notification about a product you’re actually interested in, rather than annoying spam about stuff with no relevance to you.

You may, for example, have a dinner party coming up at the weekend and get a discount voucher on a hard-to-find ingredient for that recipe you bookmarked in the store’s smartphone app last week which has now come into season and just arrived at the store.

Once you go to the store, the personalised experience continues. After you put the ingredients for that recipe into your basket and approach the wine section, you get a notification alerting you to a Pinot Noir that’s not only on promotion but will pair perfectly with the wild mushroom risotto you’ve planning to serve your guests.

Another innovation called ‘endless aisles’ will allow you to buy items currently out of stock or not usually stocked at the store, like a garment or shoes in a less common size or colour, and have it delivered to your home within a day or two.

And leaving with your purchases promises to be a more streamlined affair thanks to technology that lets stores better monitor customer flows and allocate staff to till points more quickly when demand increases – one element of the Connected Workforce which will empower and incentivise staff with technologies like gamification.

Self-service checkouts – which are currently being trialled by a major retailer at one of its Cape Town stores – promise, if properly implemented, to make for another quicker and easier checkout option for customers.

“The coming Connected Retail revolution will combine the best aspects of the online and bricks and mortar shopping experience, making for happier, more loyal customers who spend more at the store,” says Corniel.

But for this to happen will require looking beyond the Connected Customer, Connected Store and Connected Workforce, and bringing a series of technologies and innovations to the entire retail value chain.

The Connected Supplier will use embedded sensors and advanced analytics to prevent unscheduled asset downtime, increase labour productivity and synchronise or integrate activities, while the Connected Supply Chain will employ advanced computational techniques to forecast disruptions, reduce shortages, optimise warehouse collection and delivery slots and pro-actively manage advanced chains to reduce waste and theft.

Digitalisation and the store of the future have been topics of discussion in various forums, but at Deloitte, we believe it’s now time to make the concept real for the clients in our market and link business value to practical solutions,” says Corniel.

To this end, the firm recently strengthened its South African retail team with the addition of a number of individuals with extensive expertise in the international and domestic retail sectors.

It has also established a physical Connected Retail Experience at its Deloitte Greenhouse innovation hub in Cape Town. This immersive, interactive experience allows visitors to gain practical, tangible insights into every aspect of the Connected Retail ecosystem, sampling proven solutions alongside brand new technology relevant to each of the touch points: consumer, store, workforce, supplier and supply chain.

“It’s part of Deloitte’s new focus on ‘show not tell’ and we’re confident it will give our retail sector clients a significant advantage over their competitors as they position themselves to avoid the pitfalls and capitalise on the enormous opportunities offered by the Connected Retail wave,” concludes Corniel.

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