SKIDATA GEARS UP FOR GROWTH

SKIDATA GEARS UP FOR GROWTH

Having initially entered the South African revenue generating parking market in 2013 and after four highly successful years of providing commercial property owners and landlords with world class vehicle and pedestrian access solutions to the parking and stadium event markets, SKIDATA are planning for further growth with a dual strategy to leverage the opportunities in the specific and respective markets of South Africa and Sub-Saharan Africa as from 1 May 2017.

The SKIDATA management team: Bradley Lovell – Managing Director; Matome Ramphele – Financial Manager; Derek Morris – Head of Sales and Marketing; Bernhard Steindl – Service Manager and Trevor Fletcher – Area Manager, sub-Saharan Africa. –   Insert: Francois Cantin – Regional Manger, Coastal Sales

Francois Cantin, Coastal Sales

 

 

INTRODUCING THE NEW SKIDATA MANAGEMENT AND SALES TEAM

Trevor Fletcher, with over nine years of parking technology sales experience, with the last three being as the Head of Sales, Marketing and Project Implementation at SKIDATA South Africa, has been appointed Area Manager, sub-Saharan Africa.
Reporting directly to SKIDATA AG in Europe, Trevor has been tasked to increase sales to dealers, distributors and partners in countries outside of South Africa located in sub-Saharan Africa.
Derek Morris, with over 14 years of sales and marketing experience in the Southern African parking market – the first five years of which as the Sales and Marketing Director with a parking technology vendor and the last nine years as the head of Business Development and General Manager Sales at a leading parking management operator – has been appointed as the new Head of Sales and Marketing at SKIDATA South Africa.

Included in Derek’s sales team is Francois Cantin, Professional Coastal Sales, based in Cape Town. Cantin is also a highly experienced parking operator and is tasked with the sales effort in the coastal areas of Western and Eastern Cape, as well as KwaZulu-Natal.
Commercially supporting the new sales team is Bradley Lovell, who was appointed as Managing Director of SKIDATA South Africa in 2016. Lovell, despite his youthful appearance, is also a veteran of the South African parking market, having held various executive and directorship positions with two parking management operators for nearly 20 years.
Providing technical support to the sales team and directly to SKIDATA’s customers, is Bernhard Steindl who is the Manager, Services at SKIDATA South Africa and heads up the technical department. Steindl’s team provides project implementation, maintenance and service.
This dynamic and experienced team has a clear and special focus on clients with a service agreement, known as the “SKIDATA. Care Package”.
Watching the pennies and ensuring good corporate governance is Financial Manager Matome Ramphele, a qualified Chartered Accountant. Ramphele is currently studying towards his MComm (Taxation) and LLB Degree.

For further details on the changes at SKIDATA South Africa please do not hesitate to contact Bradley Lovell on +27 11 447 8698, or bradley.lovell@skidata.com

SKIDATA parking and access management system, Ballito Junction Regional Mall

Cape Town Gets First Smoke-Free IQOS Store

Cape Town Gets First Smoke-Free IQOS Store

Cape Town, May 2017 – Philip Morris South Africa (PMSA) has launched the first IQOS pop-up stores in Cape Town, for the sale of its revolutionary smoke-free alternative to cigarettes. IQOS is a tobacco heating system designed to heat rather than burn tobacco.

The IQOS stores are located at the V&A Waterfront and Canal Walk with roll-out of similar stores to Gauteng and Durban on the cards in the coming months.

“The location for the stores was an easy decision, not only because they fall in the centre of the Cape Town Metropole but because of the melting pot of cultures and brands, that the IQOS brand forms a natural part of,” says Blaine Dodds, Head of Marketing for Reduced Risk Products (RRP) at PMSA.

He continues: “We are extremely excited to partner with these malls which have agreed to allow the trial of this product indoors. The HeatSticks or heated tobacco units inserted in the IQOS device are not ignited, only heated and therefore do not generate smoke. The indoor air quality is not negatively impacted by the aerosol. This affords PMSA the opportunity to leverage the area of the store to demonstrate a smoke-free future to South Africans.”

“The South Africa launch of IQOS has marked a major milestone in achieving PMI’s vision of a smoke-free future, with South Africa being the first market in Africa where IQOS has been made available,” he adds. “Approximately 1.8 million adult smokers in the launch markets have switched to IQOS already, boosting PMI’s full scale global effort to market smoke-free products that can ultimately replace cigarettes.”
IQOS is an electronic device that heats specially designed heated tobacco units (branded as HEETS) at a controlled temperature, which gives a satisfying nicotine-containing aerosol without smoke, with less smell and no ash.

“After more than a decade of research and development by 430 scientists and experts with an investment of over $3-billion the IQOS system is the first innovative product available in South Africa which heats tobacco instead of burning it and produces a tobacco aerosol that delivers real tobacco taste and satisfaction, while reducing the levels of harmful and potentially harmful chemicals generated on average by 90 – 95% compared to the smoke of a standard reference cigarette[1],” says Blaine Dodds of PMSA.

IQOS consists of a pocket charger and a stylishly designed, rechargeable pen-like device that the heated tobacco units are inserted into.

The heated tobacco units contain premium tobacco and not just flavoured nicotine like traditional e-cigarettes, which Dodds says makes it comparable to the ritual of smoking cigarettes but without the smoke, with less smell and no ash.

IQOS is also available at leading tobacconists and at the pop-up stores at the V&A Waterfront and Canal Walk.

* IQOS™ is not risk free. The best way to reduce tobacco related health risks is to quit tobacco use altogether.

Survey reveals the favourite brands in South African townships

Survey reveals the favourite brands in South African townships

The top brands in South Africa’s townships were revealed in a Daily Sun supplement on 16 May 2017.

Market research company, Ask Afrika, conducted a comprehensive nationwide survey with a sample that is representative of the township population comparing brand usage across 144 product categories and ranking 2 996 brands.

This year 36 Ask Afrika Kasi Star Brands and 59 potential Kasi Star Brands emerged from the study. Kasi Star Brands are woven into the fabric of vibrant South African townships.
The overall 2017/2018 Kasi Star Brands winner and favourite township brand is Coca Cola, with KFC in second place, Kiwi shoe polish third, Koo beans fourth and Mageu No 1 fifth. Coca Cola has been the top township brand for two years running.


Ask Afrika Kasi Star Brands are defined as brands that are used most loyally by South African township consumers. These brands encapsulate a common experience and Kasi consumers are committed to them. The Ask Afrika Kasi Star Brands benchmark is a powerful tool for brand owners to measure return on investment (ROI) in the township market.

 

 

 

 

 

 

The 36 Ask Afrika Kasi Star Brands 2017/2018

Rank
Kasi Star Brands
Category Name
1
Coca Cola
Non-Alcoholic Cold Drinks: Colas And Other Fizzy Drinks
2
KFC
Fastfood Outlets
3
Kiwi
Shoe Polish
4
Koo (Beans)
Tinned Beans/Vegetables
5
Mageu No 1
Milk: Mageu/Maheu
6
Shoprite
Food Retail (Supermarket)
7
CTM
Tile Retail Stores
8
All Gold
Condiments And Sauces: Tomato Sauce
9
Lucky Star
Tinned Fish
10
Sta-Soft
Fabric Softners
11
Clover
Milk: Fresh
12
JC Le Roux
Wine Sparkling
13
Huletts (Sugar)
Sugar & Sweeteners
14
Dettol
Liquid Antiseptics
15
Black Cat
Spreads (Peanut Butter, Jam, Savoury and Sweet Spreads, Syrup, Honey)
16
McCain
Frozen Chips and Potato Products
17
Colgate
Toothpaste (Normal)
18
Knorrox
Stock Cubes
19
Dulux
Paint
20
Defy (Stove)
Stoves / Ovens / Hobs
21
Bostik
Adhesives
22
MTN
Telecommunications ( Cell Main Network Provider )
23
Bull Brand
Tinned Meat
24
Gillette
Razors (Male)
25
Huggies
Nappies
26
BP (Express)
Garage Convenience Shops
27
Fatti’s and Moni’s
Pasta
28
Frisco
Hot Drinks: Instant Coffee
29
Colgate
Toothbrushes: Manual
30
Always (Pads/Towels)
Female Sanitary Products
31
Avon
Eye Make-Up
32
Doom
Insecticides / Insect Repellents
33
Elastoplast
Medicine: Sticking Plaster
34
Ultra Mel
Custard
35
Tastic
Rice (Rice And Couscous)
36
Rama
Margarine / Butter

Methodology
Three criteria were used to define a Kasi consumer in 2017/2018: he or she has to live in a South African township, fall into the socio-economic level (SEL) 3-5 and not have a post-graduate qualification.

This is aligned with Sandeep Mahajan’s definition of a “regular township resident” and excludes the more affluent consumers that make townships their homes. All nine provinces were included in the sample of 4,403 Kasi consumers interviewed, representing the view of 9.3 million Kasi consumers across South Africa. The results were independently audited by BDO and Dr Arianne Neethling and verified by township market expert, GG Alcock.
What drives brand loyalty in the Kasi?
Nothing for mahala, siyazama zama (nothing is free so we make a plan). The Kasi market largely remains a price sensitive market. Kasi consumers are excellent with budgets and they are receptive to special offers. They live in an unreliable and in many cases an unsafe environment, an investment in high quality brands provides a sense of reliability and assurance to the Kasi household.
The top line trends of the Ask Afrika Kasi Star Brands survey reveal a number of loyalty drivers that brand owners and marketers should bear in mind when targeting this market.
Brands are a ‘cheap price’ for aspiration
“I know where every cent goes, every cent is put to a cost, the money is like water through my hands, it touches them then it washes off someone else’s hands.” (GG Alcock 2015: 138)

Kasi consumers, on the whole, spend money more carefully than they used to and say that it is worth spending more money for quality goods. The Kasi shoppers always look out for special offers, but if they like a product they will buy it regardless of price. They are open to trying new brands to see if they like the product, but once they find a brand that they like, they tend to stick to it. Kasi consumers will, however, try out a different brand if it is on special offer.
An investment in brands is seen as a ‘cheap price’ for aspiration. It is important for Kasi consumers that they care for themselves and the people in their household by giving them the best their money can buy.
“Kasi consumers expect quality and usually have a brand repertoire within their loyalty spectrum which they will compare in terms of price points and special offers. They understand the advantage of choice and will choose the best their money can buy. If a brand consistently delivers quality at the right price point, it will be used by Kasi households,” says Dr Amelia Richards, Account Director at Ask Afrika.
Proudly South African

Coca Cola the international giant is continuing to enable a customised approach for their brand. The ability of a global brand such as Coke to merge local vernacular with a personal intimate occasion between two potential lovers, is the ideal recipe for loyal consumption of Coca Cola to celebrate special moments.
Kasi consumers are proudly South African and opt to buy goods that are produced locally, believing that South African products are usually of high quality. They think that it is important that brands act ethically and refuse to buy products from a company that they disapprove of. Kasi consumers support brands that empower previously disadvantaged South Africans.
“The Target Group Index (TGI) data has shown that Kasi consumers are very loyal to South African heritage. Tradition and community is important in the Kasi where people take care of one other. They expect the same from brands that they pay money for,” says Richards, “There is a misconception amongst those that don’t know the market that when Kasi consumers become more affluent they become westernised.”
According to GG Alcock this is not the case, greater affluence does contribute to modernisation, yet township residents often stay close to their cultural and local South African heritage – they become Afropolitan. Brands that want to be successful in this space must first understand the culture and then contribute towards it in a meaningful way.
Never underestimate the Kasi consumer
“eKasi was once a swear word, a place to be feared, but is now a place where life is shared with brands and people that inspire hope, celebrate a multitude of entrepreneurs, community leaders, responsible proactive citizens of both the Kasi and the Emalalini, the rural villages.” (GG Alcock 2015)
Living and doing business in African market places require an ethos and connection to the informal, invisible and intangible. It is vital that marketers targeting this market have an in-depth understanding of this continually changing environment and lifestyle. It is important to talk to aspiration, yet to remain within reach. Many Kasi consumers travel into the cities for work and see the way that brands are being advertised there. It is vital not to denigrate the Kasi consumer through inconsistent brand messaging and tone of voice in cities versus townships.

Sharing and CSI
Brands that share what they achieve in empowering and uplifting disadvantaged communities through their CSI initiatives will garner loyalty from the Kasi consumer.

Not only did the KFC “Add Hope” campaign feed 5 million children during World Hunger month, but it feeds 110 000 children every day. In 2016 the KFC initiative included the unveiling of the wall mural on Vilakazi street in Soweto, increasing awareness for the campaign. The residents can collect seeds from the tree mural on the wall encouraging them to grow their own vegetables and fruit.
“Brands that connect and identify with the language, the culture and local style will win over the hearts of Kasi consumers. Respect is inherent in the Kasi culture as are ethics, caring for the past and present, hope and a belief that we will all build a better future, as a collective – brands are expected to be part of this ethos,” concludes Richards.
Research reports
In-depth Ask Afrika Kasi Star Brands research reports assist with brand planning and marketing strategies, competitive intelligence, consumer profiling, product enhancement and client pitches. There are various reporting options that look at what is driving loyalty in the township market or which are tailored to media and marketing strategies that target the township consumer.

Know your retail dynamics and consumer markets!

Know your retail dynamics and consumer markets!

An excellent understanding of markets and consumers is vital for successful retail property investment, and this is true whether investing locally or abroad.

Stephan le Roux, Director of Growthpoint Properties Retail Division

(Image: V&A Waterfront)

This is the word from Stephan le Roux, Director of Growthpoint Properties Retail Division, who was recently part of a panel focusing on retail abroad, hosted by the KwaZulu-Natal chapter of the South African Council of Shopping Centres.

Growthpoint is the largest South African primary listed REIT and is well on its way to becoming a leading international property company. It provides space to thrive with innovative and sustainable property solutions in a diversified portfolio of 533 properties it owns and manages, including 473 properties in South Africa, 59 properties in Australia through its investment in Australian Stock Exchange listed Growthpoint Properties Australia and a 50% interest in the properties of the V&A Waterfront, Cape Town. It also owns a 26.9% stake in the €1bn property portfolio of London Stock Exchange Alternative Investment Market-listed Globalworth Real Estate Investment, the largest owner of office space in Romania.

Growthpoint has successful international investments in the office and industrial sector, but it has yet to enter the international shopping centre investment arena.

“Retail is much more than investing in bricks and mortar. It is one of the most difficult investments to make successfully,” explains Le Roux.

He adds that with the economy looking rather depressing in South Africa, the allure of offshore property investment is stronger than ever. However, he cautions that investing in malls and shopping centres abroad certainly isn’t simple or straightforward.

“The motivation behind many South African companies investing in property overseas is simple: the positive spread between yields and funding costs of properties in Eastern Europe – a real estate investment destination that has most recently become a favourite with South African property companies – and, to a lesser extent, in Western Europe, are significantly better than in South Africa,” notes Le Roux.

For a prime shopping centre in South Africa today, assuming you can get one, you are going buy at a 6% to 7% yield. However, you can develop in Eastern Europe for close to 9%. You can buy at yields slightly better than 7%. However, the real advantage is that you can fund your investment at rates around 2,5% to 3%. This creates a positive spread between the yield and cost of your capital.

This favourable dynamic does not exist in South Africa in the current market. Today, if you want to buy any decent retail property asset, you will have to subsidise the property income to the tune of about 2%. You effectively have to wait two or three years before the income from the property is equal to its cost of funding.

“Without a doubt, moving into other international markets can give listed property companies a great boost, especially during the first year of investment,” says Le Roux. However, he cautions that even with these benefits, it is vital to understand the dynamics in these foreign markets and know local consumers. Looking at an asset in isolation of these factors is a mistake.

He believes the property industry in South Africa still seems to be coming to terms with understanding its own consumer markets.

“There is a lot of data and analysis, but few seem to be able to get to the heart of it. Looking at shopping centres that have been coming up in South Africa, they are being developed on the back of research and surveys. All these centre’s sites should have been rated 70% or over to be successful, but many clearly aren’t successful,” points out Le Roux, referring to the oversupply of retail space and cannibalisation, which has become plain in some areas.

He also highlights that we have to accept, at some point, that South Africa is essentially fully developed for shopping centres. “There shouldn’t be a burning need to continue to develop,” stresses Le Roux.

Over development comes at a high price. The information coming out of the USA, for example, is dismal with 8,000 projected store closures during 2017. It is estimated that 30% of its shopping centres will close in the next five years.

“Retail is a dynamic and changing industry,” comments Le Roux.

When considering the rise in competition from e-commerce, Le Roux feels that we are perhaps fortunate that South Africa has huge logistical problems. However, in countries like the USA, with more efficient delivery systems, bricks-and-mortar retail has lost a lot of growth in consumer spend to the likes of Amazon.

“We are an industry that is under pressure, and we are going to remain under pressure. I think we are going to have to look elsewhere for new retail investments. The big question is where?”

While it isn’t easy to invest successfully in unfamiliar developed markets, it has also proven difficult to make retail developments work in emerging markets. This includes other countries in Africa and in India, even with their emerging market synergies and notwithstanding that South Africans have everything that it takes to deliver successful shopping centres in these markets.

Wherever retail property investment is focused, Le Roux emphasises that looking at the shopping centre asset alone isn’t enough to make a well-informed investment decision.

“You need to look at what happens around the asset, the habits, travel patterns, beliefs, and preferences of people in its catchment area,” reveals Le Roux. “There are so many intricacies that go into the success of shopping centres, and it is essential to be very careful and thorough when looking at unfamiliar markets, whether they are in another city, province or country.”

 

Township retail booms

Image: Dispatch Live

Wimpy will be opening its doors in Mdantsane, East London, for the first time in June 2017. (Images: Famous Brands)

Township retail booms

East London: Mdantsane’s first ever Wimpy restaurant among the growing list of brands investing

Forget a sluggish national economy. Township retail is booming as major brands invest amid stalled CBD and suburban growth.

One such case in point is in the Eastern Cape, where East London’s Mdantsane City Shopping Centre – the biggest retail node in Mdantsane – has entrenched itself as a hotbed of retail activity.

General manager Dean Deary said foot traffic had increased by 4% this year alone and that the 36 000 m2 mall had shown consistent year-on-year growth throughout its nine-year history and was now effectively fully tenanted.

“Mdantsane City turned nine years old in April and I am extremely proud to see the investment and buy-in of our local community that has helped the centre reach this milestone. We have one vacancy left, which has been offered to a prospective tenant.”

The success recently prompted Famous Brands to expand its investment by establishing the area’s first Wimpy restaurant, which is scheduled to open in June. The centre already boasts sister brand, Debonairs.

“This new addition will add to the already growing foot traffic and increased turnovers for our tenants, while delivering exciting, quality brands for our shoppers,” said Deary.

Mdantsane-born entrepreneur Sakhumzi Klassen is the driving force behind the Wimpy initiative. The 41-year-old franchisee, who has various business interests in the former township area, believes the Wimpy franchise is a tangible sign of growing investor confidence by big brands in Mdantsane.

“Mdantsane is a very interesting place, and I would like to see it reach the levels of other similar townships such as Soweto,” he said. “It is currently not at its rightful place socially, economically or from a growth point of view.”

Klassen said his latest venture would help to address this by creating 20 permanent jobs, with at least another five part-time openings depending on its stability and growth.

“We urge the community to come and support this business, as it will support more than 30 local families if you also consider the suppliers who will benefit from it.”

For Klassen, the arrival of a brand like Wimpy has been “a long time coming”, as there are what he terms “restro lounges” in Mdantsane but no fast food restaurants offering seated dining.

“Customers can look forward to an experience on par with, or even better than, any other Wimpy in the suburbs. The location of the restaurant within the mall is stunning and I’m sure customers are going to love it.”

Famous Brands’ managing executive for the Eastern Cape, Mark Hedderwick, said the Wimpy brand had evolved from a traditional “breakfast and burger joint” into a modernised, value-for-money restaurant with the addition of meat and chicken grills to the menu.

“Mdantsane Shopping Centre is without doubt the destination of choice for the local community, which affords us a great opportunity to ‘take the brand to the people’.”

 

Rebosis’ Baywest Mall celebrates robust growth

Rebosis’ Baywest Mall celebrates robust growth

Following our report last month on Rebosis Property Fund’s steady and consistent performance across its property portfolio, Shopping & Retail SA brings you a more in-depth report on the company’s Baywest Mall, whose strong performance indicates strong consumer appetite for larger shopping centres

As the Eastern Cape’s largest shopping and entertainment centre, Baywest Mall, marks its second birthday this month, its performance for owners Rebosis Property Fund suggests consumer appetites for super-regional malls are far from waning.

According to Rebosis Property Fund group marketing manager Deborah Bailey, the flagship mall for South Africa’s largest black-owned, listed property fund is living up to its tagline, “the pulse of the Bay”.

Growth indicators for the mall include:
• Consistent foot traffic year-on-year (seven million visitors in 2016)
• Total sales growth year-on-year over a comparable period of 16.0%
• Mall trading density (sales per m²) growth of 14.3% year-on-year over a comparable period, and
• Spend per head growth of 21% year-on-year over a comparable period

“Our data shows Baywest has been embraced by the region, with almost seven million visitors through our doors in 2016,” said Bailey, adding that the super-regional mall attracted not only residents of Nelson Mandela Bay (Port Elizabeth, Uitenhage and Despatch), but also brought out-of-towners into the city from as far afield as Plettenberg Bay and Grahamstown.

“These out-of-town shoppers would previously have visited the city intermittently, but now the mall provides a unique shopping and entertainment destination to warrant them travelling more frequently. Furthermore, once these visitors arrive in the Bay, they don’t just stop in at the mall but also conduct business elsewhere in the city, meaning that other businesses benefit from our presence,” said Bailey.

“On the whole, with a 91% occupancy rate by gross leasable area (GLA) – up from the 85% when we opened in 2015 – Baywest Mall is in a healthy state given the fact that it is just two years old and part of a larger precinct which is still in its developmental stage, and especially given the challenging macro-economic environment.”

During its two-year construction phase, the 90,000m² mall created employment for over 5 000 mostly local construction industry workers. Since opening on May 21, 2015, a further 2 000 permanent jobs have been created to staff the mall’s 250 outlets.

“Baywest creates direct employment for up to 2 000 Bay residents. This excludes the downstream economic benefits which the mall provides for the many service providers working with our tenants,” continued Bailey.

Baywest Mall general manager Troy Zunckel said the shopping centre has brought a variety of exciting new brands to the Nelson Mandela Bay region, covering entertainment, dining and retail.

“Such a shopping and entertainment experience was previously only accessible to Bay residents when they travelled to cities like Johannesburg, Durban and Cape Town.”

Speaking on the filling of the mall’s vacant stands, he said: “We have strategic vacancies to let and we are constantly in discussions with key brands around those vacancies. It is important that we create the right tenant mix of local, regional and national brands which complement all our stores. If we relax our standards and fill our available space with tenants that do not fit our strategic mix, it would harm our existing tenants rather than complementing them.”

With regard to the coexistence of the mall in relation to other centres in the region, Zunckel said: “We believe Baywest is fulfilling its role as a super-regional mall by supplementing – not cannibalising – trade at smaller shopping centres.”

Baywest had brought “fantastic new brands to the region, and created major employment opportunities”, he added.

“It has created a one-stop destination for leisure activities that were previously unavailable to local residents – such as an Olympic-size ice rink and the region’s only Ster-Kinekor IMAX and Cine Prestige movie theatres.”

SA’s Zyda Rylands scoops Woman of the Year award at World Retail Awards 2017 in Dubai

SA’s Zyda Rylands scoops Woman of the Year award at World Retail Awards 2017 – Dubai

Zyda Rylands, CEO of Woolworths South Africa

At the prestigious World Retail Awards 2017, staged in Dubai in April, South Africa’s Zyda Rylands, CEO of Woolworths SA, was honoured with the Woman of the Year award.

A tailor’s daughter who hails from Cape Town, Rylands joined Woolworths in 1996 and worked in the finance and store operation teams. She steadily worked her way up and was appointed the People and Transformation Director of Woolworths in 2005 and was appointed to the Board in August 2006.

All the winners of World Retail Awards 2017:

Future Retail Challenge

Winner: Fashion Retail Academy, London, UK

Woman of the Year

Winner: Zyda Rylands, CEO, Woolworths SA

Best Digital Customer Experience Initiative

Winner: Boyner Group (Turkey)

  • Boyner Group (Turkey)

  • Dress in the City (France)

  • El Corte Ingles (Spain)

  • Geant, (United Arab Emirates)

  • Marks and Spencer (UK)

  • Saudi Telecommunication Company (Saudi Arabia)

  • Singapore Telecommunications Limited (Singapore)

  • Superdry (Berlin, Germany) and SeymourPowell (London)

Best Instore Customer Experience Initiative

Winner: Tommy Hilfiger (United States)

  • adidas, Checkland Kindleysides and Gensler, (New York, United States)

  • ‘Imagine’, Dubai Festival City (United Arab Emirates)

  • Galeries Lafayette and Sky Boy (Paris, France)

  • Globe Telecom (Philippines)

  • Hermès – petit h, Checkland Kindleysides and DML, (New York, United States)

  • L’Occitane en Provence and School House, (New York, United States)

  • PIRCH, (United States)

  • Selfridges (London, UK)

  • Siam Discovery-The Exploratorium (Thailand)

  • Tommy Hilfiger (United States)

Rodney Fitch Award for Innovation and Creativity

Winner: Marks and Spencer: Venture Labs (UK)

  • Cherine Magrabi, Creative Director of MAGRABi (UAE)

  • Dressipi, (UK)

  • Geetansh Bamania, Rentomojo (India)

  • Marks and Spencer: Venture Labs (UK)

  • Martin Darby – Celebrity Fitness, Indonesia

  • MATCHESFASHION.COM (Global)

Young Retail Entrepreneur of the Year Award

Winner: Alyce Tran, Co-Founder, The Daily Edited, (Sydney, Australia)

  • Ryan Goldston and Adam Goldston, Co-Founders, Athletic Propulsion Labs (APL) – (United States)

  • Furqan Khan, Founder, Kixify (United States)

  • Roman Kirsch, Founder & CEO, Lesara , Berlin, Germany

  • Lana Hopkins, CEO and Founder, Mon Purse , Sydney, Australia

  • Alex Fenkell & Jordan Katzman, Co-Founders, SmileDirectClub, USA

  • Alyce Tran, Co-Founder, The Daily Edited, (Sydney, Australia)

  • Adam Schwartz, Co-Founder and COO, TeePublic (United States)

Store Design of the Year Award

Winner: Siam Discovery Exploratorium (Thailand)

  • adidas and Checkland Kindleysides and Gensler, (New York, United States)

  • Art Walk Mall N1, China (RCL)

  • Diesel, Milan (Wonderwall with Masamichi Katayama) (Italy)

  • L’Occitane en Provence and School House, (New York, United States)

  • Lune Croissanterie and Studio Esteta (Australia)

  • Magmode and Liu Kai (Hangzhou Kerry Center, China)

  • MAGRABi (Dubai, United Arab Emirates)

  • Missguided and Dalziel and Pow (London)

  • Siam Discovery Exploratorium (Thailand)

  • The White Company and Household (London)

Retail Advertising Campaign of the Year

Winner: Marks & Spencer for “Christmas with love from Mrs Claus” – RKCR/Y&R (UK)

  • IKEA U.S. for “We Help You Make It” – Ogilvy & Mather (United States)

  • JCPenney for “Here I Am” – mcgarrybowen (United States)

  • Karaca for “We Have a Lot to Share” – Y&R (Istanbul)

  • Macy’s for “The Santa Project” – Figiulo & Partners (United States)

  • Marks & Spencer for “Christmas with love from Mrs Claus” – RKCR/Y&R (UK)

  • Myer for “Myer Christmas” – Clemenger BBDO Melbourne (Australia)

  • Notonthehighstreet.com for “Magic is Real” – Mother Creative (UK)

  • Supercheap Auto for “The Best Performing Oils” (Australia)

Responsible Retailer of the Year

Winner: TOMS (United Arab Emirates)

  • Boyner (Turkey)

  • Carrefour Brazil (Brazil)

  • Flora & Fauna (Australia)

  • Jumia (Nigeria)

  • Myer (Australia)

  • Otto Group (Germany)

  • TOMS (United Arab Emirates)

  • Woolworths Holdings Limited (South Africa)

International Retailer of the Year

Winner: Sephora

  • Aesop

  • ASOS

  • Costco

  • Lidl

  • Media Saturn Group

  • Sephora

  • Steinhoff

 

Retailer of the Year

Winner: Amazon

  • Action

  • Amazon

  • Cotton On

  • Inditex

  • Walmart

  • Zalando

Outstanding Leadership Award

Winner: Mindy Grossman, CEO, HSNi

Retail Transformation and Reinvention Award

Winner: Kroger

Innovation Fellowship Award

Winners:

Natalie Massenet

Mark Sebba

Jose Neves, Founder and CEO, Farfetch

Source: World Retail Awards 2017

The legendary Pizza Del Forno brand now deeply entrenched into the Gauteng family-orientated restaurant arena

Pizza Del Forno, Fairlands, Johannesburg

The legendary Pizza Del Forno brand now deeply entrenched into the Gauteng family-orientated restaurant arena

The key word is Passion

In April Shopping & Retail SA had the privilege of meeting with the Pizza Del Forno team in order to gain some insight to this hugely successful restaurant franchise operation.

From the outset of our discussion it became clear that the success of this dynamic team can be attributed to its passion: – not only for its good food – but for its staff, its franchisees, and a passion for quality in every facet of the operation, from ingredients, to food preparation and presentation, and ultimately – customer satisfaction.

Sotiri Frantzeskakis, CEO of Pizza Del Forno

Originally founded in 2000, Pizza Del Forno has progressively entrenched its position as the preferred neighbourhood pizzeria, not only for seated eat-in customers, but also for take-away and delivery clients.

Nine years later Pizza Del Forno merged with Gian Carlos Pizza Pasta, with Sotiri Frantzeskakis – the founder of Gian Carlos Pizza Pasta – bringing to the table his vast experience as a specialist pizza restaurateur and accomplished manager of all aspects of franchising.

Operating under the specially created Streamline Brands banner, of which Sotiri is the sole director and CEO, he applied his knowledge and experience in the pizza industry to re-develop Pizza Del Forno into a brand of style.

“Part and parcel of developing and positioning the new brand, incorporated not only a new and refreshing logo and identity, but the re-design and renovation of the existing stores to reflect the modern vibrant family-orientated eating experience,” said Sotiri. “In addition, it was important for us to round off and bed down this concept through the inclusion of our own creative quality food offering and menu presentation.”

This dedication to the defined strategic plan and development of the brand has yielded clear direction and steady growth. The resultant success of the Pizza Del Forno brand is now legendary and is indeed deeply entrenched into the Gauteng family-orientated restaurant arena. Pizza Del Forno appeals to many different groups of people, from the younger clientèle to married couples, families and mature adults. Patrons enjoy the rich Italian atmosphere, delicious food and outstanding service, making them feel valued thus keeping them coming back again and again.

Sotiri went on to stress the importance of quality in each and every one of their ingredients, which when combined result in unsurpassed pizza and pasta offerings with unique and unforgettable flavours and aromas of the traditional wood-fired pizza.

“We go to great lengths to ensure exceptional quality, flavour and authenticity of our wood fired pizzas,” continued Sotiri. “For example, we import all of our own tomatoes from Italy, as the rich soil there imparts a distinctive flavour to the fruit which cannot be replicated elsewhere in the world.”

Of the 36 Pizza Del Forno stores, Streamline Brands have just signed the fourth five-year lease for the original Pizza Del Forno store in Town Square, Weltevreden Park, Roodepoort. So far, this year a further three stores have already been opened. “We prefer smaller more intimate convenience centres for our restaurants, rather than shopping malls,” explained Sotiri. “These sites require 150 to 350 m² with an outside deck of 50 m². We like high profile sites with good visibility and accessibility as this is critical to the success of the business. Our expansion ambitions are quality stores over quantity of stores which enables us to continue to expand steadily at a rate of six to eight sites per year currently within a 250 km radius of our head office and logistical centre in North Riding, Gauteng. Our plans going forward will be to expand into the Kwazulu Natal and Western Cape provinces.”

Project management of a new store, from shop fitting and equipment to signage, are monitored by the franchise company. This ensures that the franchisee is presented with a complete turnkey operation and full operational assistance is provided throughout the opening and hand-holding process.

In take-aways alone the Pizza Del Forno group fills over 250 000 pizza boxes per month

Presently Pizza Del Forno comprises of five stores on the East Rand; two in North West Province; two in Mpumalanga, three in Pretoria, and the rest in and around Johannesburg

Tony Kandralides, Pizza Del Forno – Flora Centre: Franchise Store of the Year – 2016

On franchising: “We are very particular in the selection of our franchisees,” says Sotiri. “In order to secure a Pizza Del Forno franchise it is mandatory that the franchisee is “hands-on” and works in the restaurant, and that it is his or her primary source of income – this protects the franchisee’s investment and the quality of the brand.”

“Our people are our most important asset!” From the head office through to each and every franchise, to the staff, waiters and drivers: the culture of growth, inclusion, respect and focus on quality and friendly service shines through.

“Every year we have a special gala dinner and awards evening to recognise excellence within our operation,” continues Sotiri. “This is a prestigious black-tie affair to which everyone looks forward a great deal – and the occasion is highly valued and appreciated by all members of the group.”

Franchisees come from all walks of life, amongst them are teachers, bankers, panel-beaters and even enthusiastic youngsters eager to learn.

Nicholas Joseph (centre) – 21 year old owner of the Northcliff Pizza Del Forno, pictured here with Stephanie Blane (COO) and Sotiri Frantzeskakis (CEO)

On this note, Sotiri proudly points out that a number of his franchisees have voluntarily taken on a mentorship role – where an experienced restaurateur keenly takes a promising youngster under his wing and carefully nurtures his capabilities and growth into the Pizza Del Forno franchise fold.

Some of these youngsters have filled this challenging role extremely well and are now in their seventh year with the group.

Although this function is not formalised it is indeed recognised and given a high priority and encouragement within the group. This mentorship role within Pizza Del Forno will be the subject of closer focus and an in-depth article in a future issue of Shopping & Retail SA.

 

All Pizza Del Forno operations and logistics are coordinated from the Streamline Brands’ head office and distribution centre in North Riding, Gauteng.

Here the talented staff of 27 manage all procurement and distribution of supplies and ingredients to the surrounding franchises using specially adapted and customised management software.

In addition, all franchisee training and ongoing retraining is conducted here.

This head office is also the creative hub for design and supply of all marketing and communications support material, including signage, menus and project management of new store location, set-up and shop-fitting.

Pizza Del Forno also has its own Group Chef as part of its operations team who is actively involved in maintaining the groups quality and standards.

For franchisees, monthly meetings are held here at which scoreboards are presented by each franchise and turnovers are openly discussed – creating an air of excitement and keen competition within the group.
Incognito and unannounced, Shopping & Retail SA  visited the Pizza Del Forno restaurant at Bromhof in April for an evening meal and, quite frankly, we were blown away by every aspect of this gem.

The Bromhof Village Centre itself is really tiny, housing but a few shops and located adjacent to a filling station.

The very pleasant ambience, with gentle music in the background, with all staff neatly dressed and looking very sharp in their red shirts, and warm and comfortable décor and furnishings, certainly creates a lasting and exceptionally good first impression.

The biggest surprise was yet to come: – the extent of the menu – this was a real eye-opener. Yes, Pizza Del Forno specialises in pizza (and pizza of note it certainly is) – but what struck us is the significant flair of the menu, which includes a wide range of starters from garlic snails to carpaccio; salads, burgers and grills for those who enjoy their beef, then on to the pastas and pizzas and creative desserts – certainly one of the best menus I’ve seen – and at a very reasonable price.
Our waiter, Glen, attended to our every need; and Managers Mark and Lorenzo were on hand – circulating and managing all aspects of the restaurant during the evening trade.

Importantly, Pizza Del Forno is one of the few restaurants to stock extra light wine, much to my wife’s joy, as this is her wine of choice. Indeed the wine list is a good balance of red and white wines to suit every palate.
The Pizza Del Forno recipe for success
The Pizza Del Forno Franchising covers every facet of opening a successful business, including: • Site selection • Site development • Administration systems • Marketing • Operational support • Corporate identity • Training • Budgets and cash flow • Lease negotiations • Opening the store • Group standards • Financial applications, submission and assessment • Point of sale • Establishment costs

Would SA retailers give up retail space to recycling?

The Changing Role Of Shopping Centres

Would SA retailers give up retail space to recycling?

By Reg Barichievy, Smart Waste

Question: how far will retailers go to satisfy the needs of their customers? Would they, for example, give up retail space for recycling? In Sweden they do; in South Africa I think that is still a long way off.
It is trite that shopping centres are constantly evolving to satisfy the needs of their customers. (In this case I refer to their customers as the consumers and not the tenants). A comparison with Sweden serves to illustrate where South African retailers sit on the progression from no recycling to optimum recycling.
“Sweden actually imports waste from the UK and Spain.”

Approximately 40 years ago, Sweden did not have a recycling culture and there were few recycling containers. Today Sweden is widely regarded as the gold standard for recycling with 99% of household waste being recycled – in 1975 this was 38%. Sweden actually imports waste from the UK and Spain amongst others, although this is incinerated to provide central heating.
How did Sweden achieve this – it was largely through education and developing a culture of recycling on the part of individuals.
It is common practice when finishing a meal in a restaurant to separate the food scraps, any plastic packaging and paper and styrofoam cups into separate, marked containers before neatly stacking the used dishes and cutlery in a tray holder. Failure to do so would draw immediate criticism from friends and other patrons. It is against their society’s norms.
Recycling is also made easy with recycling containers built in to every home, recycling rooms in every residential and commercial building and containers dotted around parks and public areas. There are recycling containers in shops, restaurants and on the public transport. One never has to look far to find a recycling container and they are clearly marked.
The interesting thing, though, is finding recycling machines in supermarkets. These are large machines which are accorded some prime space. Space in Sweden is expensive, proportionately way more expensive that South Africa’s retail space and yet the retailers think it important enough to sacrifice this space to a loss leader.


Such is the power of the consumer and so strong is the demand that the retailers have found ways of accommodating their needs. A typical shopping trip often starts with the consumer taking recyclable material in his shopping bags, depositing it into the recyclable machines and then returning home with groceries. It is obviously good business for the supermarkets to address this social need.

Where are South African retailers and shopping centre developers? Still a long way off. One leading supermarket chain has placed recycling containers at its entrance for several years but in the main these have not been used properly by consumers. There are recycling containers available in some public areas and on certain university campuses but again these are generally used sparingly and without much enthusiasm.
Recycling works where there is a champion who drives the education and develops the culture. Certain schools excel at this, teaching children from an early age and at the same time earning some income from the sale of the recyclables. Training and containers, recycling reports can all be provided but what is presently lacking is the recycling culture. This is a learned habit and takes time to establish.

Until the recycling culture is in place it would be unreasonable to expect any retailer to give up retail space to recycling – the problem lies with the consumer, not the retailer.

Baywest leads Rebosis’ strong retail performance

Baywest Mall, Port Elizabeth

Baywest leads Rebosis’ strong retail performance

In April Rebosis Property Fund reported a net property income growth of 74,6% for the six months ended 28 February 2017. A JSE listed Real Estate Investment Trust (REIT) Rebosis’ strategy is directed toward dominant retail malls.

The company’s Chief Operating Officer, Andile Mazwai, said: “We saw strong retail performance despite a depressed retail sales environment. This performance was largely led by Baywest Mall, which held the highest trading density growth at 11.6%, and Bloed Street Mall. Alongside this performance we reduced our retail vacancies to 1.5% in the reporting period.”

Rebosis’ South African retail portfolio makes up 62% of its South African assets and consists of six high-quality, dominant shopping malls with strong anchor national tenants delivering income streams escalating at 7,4%.

Expanding on this solid performance, Rebosis plans to embark on extensions to its Mdantsane Mall in Pretoria, as well as implement a R55 million upgrade to Hemingways Mall in East London.

Forest Hill City, Pretoria

Rebosis concluded the watershed R5 billion Baywest Mall (Port Elizabeth) and Forest Hill City (Pretoria) acquisition during the reporting period and at the same time internalised its asset and property management entities. This gave rise to the increase in market cap growth and share price appreciation and saw the fund achieve its stated objective of becoming a retail-focused fund with an internalised management function.

Rebosis’ Chief Executive Officer, Sisa Ngebulana

Rebosis’ Chief Executive Officer, Sisa Ngebulana, said, “We achieved exciting growth in both total assets and income during the 6-month period under review. We were also able to hedge 100% of our debt and extend debt maturity profiles in order to mitigate potential risks that arise as a result of a market downgrade and low economic growth. To have achieved a 38% increase (74.6% including new mall acquisitions) in net property income while reducing our overall vacancies to 2.4% bears testament to our defensive office-sovereign underpin and the dominant retail strength in the portfolio, which we believe will continue to perform well in a sluggish economic environment.”

The retail portfolio delivered a strong 6% trading density growth and the fund’s remaining industrial property is presently under offer and is being held for disposal.

Further detail of Rebosis performance reveals that total distributable income increased 32,7% to R389 million from R293 million over the period. Following various acquisitions during the period, assets under management rose a significant 51% to R17,9 billion from R11,8 billion.

A dividend of 60,08 cents per share has been declared for the six month period. This amounts to 7,07% dividend growth year-on-year, which is in line with the 7% to 9% guidance expected for the financial year.

Rebosis also concluded the acquisition of Ascension Properties which led to the listing of the Rebosis-A shares at a market capitalisation of R1.6bn (thus giving Rebosis a combined market capitalised value of R9.8bn). The Rebosis A-shares were listed on the JSE on the 19th of April 2017.

The completion of this acquisition consolidates Ascension Properties under Rebosis’ direct properties and has bolstered the Rebosis asset portfolio by a further R17.9 to R21.3bn.
The combined SA properties now constitute 8 retail shopping malls, 42 office buildings and two industrial properties.

The commercial properties are located in nodes attractive to government tenants and are mainly single-tenanted buildings let to the National Department of Public Works, providing for average escalations of 8,2%.

The dividend growth in the period is in line with the Rebosis Board’s view that the dividend per share will grow by between 7% and 9% for the full year to 31 August 2017, provided there are no unexpected or drastic deteriorations in the South African economy.
This forecast outlook is issued by the Board, and has not been reviewed or reported on by the company’s auditors.

Rebosis also holds 67,5% in New Frontier Properties which owns the dominant shopping centres in the English towns of Blackpool, Middleborough and Burton-on-Trent.

Hemingways Mall, East London