Insight retail magazine edition 08 (oct dec 2014)

IES

ISSUE 08 / OCTOBER - DECEMBER 2014

Unlocking Africa’s retail opportunities BE PART OF THE DISCUSSION BOOK TODAY TO RECEIVE 15% DISCOUNT | QUOTE: AFRA15 T: +44(0)203 033 2020 W: www.retailcongressafrica.com E: info@retailcongressafrica.com

Bakery innovation & evolution in retail Leasing transforms retail sector

RATEGY DIRECTOR | PICK N PAY Jeremy Hodara CO-CEO | AFRICA INTERNET HOLDING

- Case study outlook

ANAGING DIRECTOR RETAIL ESTATE | MR PRICE Ramanathan Hariharan CEO | MAX, LANDMARK GROUP

S SOUTH AFRICA Christine Service COUNTRY MANAGER | DISNEY

Dispensing trends in Retail PART OF THE

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Retail Technology trends - Omni-Channel retailing

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4th December

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RETAIL BUSINESS INTELLIGENCE

KENYA | Karuna Hse Commercial/Enterprise rd Junction Industrial Area, Nairobi Tel: +254.728 607 000 e: info@securityworldtech.com UGANDA | Ntinda Ind. Area Plot M275, Opp, Britania Kampala Tel: +256 414 223 1767 Cell: +256 782 115 464 e: info@securityworldtech.co.ug RWANDA | Kigali , Remera, Kisimenti Tel: +250 252 581 741 Cell: +254 788 382 626 e: info@securityworldtech.co.rw TANZANIA | Hifadhi EPZ Ubungo, Off Morogoro Rd , Dar Es Salaam, Tel: +255 22 277 3391 Cell: +255 767 607 000 e: info@securityworldtech.co.tz

This issue’s main feature is on bakery solutions and trends.

Interestingly, Kenya is experiencing a revolution in which supermarkets are baking goods to fiercely compete with the leading traditional bakers. Research indicates that sales of baked goods are expected to increase with growth being fuelled by the increasing incomes driving growth in the largest category of bread. Apparently, the demand for bread is expected to explode in the coming years. South Africa, Nigeria, Ethiopia, Sudan and Kenya are currently the largest and leading bread markets in Africa. The key drivers of this demand are Africa’s rapidly growing population, an expanding middle class which has more money to spend, an enlarging labor force, and increasing rates of migration to African cities and towns.

Africa now has more than 50 cities inhabited by over one million people. By 2020, more than 500 million Africans are projected to live in urban areas and cities. Statistics reveal that urban dwellers and city people eat more bread than people in the rural areas. Given the rapid growth of African city populations, bread is sure to remain a highly sought-after food item by African households.

From computers and heavy machinery to complete offices, it is possible to lease almost anything for your business. Equipment leasing can provide a lifeline for cash-strapped businesses in need of the tools of the trade. This issue takes a look at equipment leasing – a factor that has seen more retailers invest and diversify into the delis, butcheries, expansive refrigeration and cold rooms as well as shelving and display units. We also take time to compare leasing versus buying equipment as one weighs his options.

Our retail workshops that took place in Kisii, Kakamega, Nyeri and Mombasa are also highlighted even as focus shifts to the continent. The upcoming Retail Congress Africa will be held on 18 - 19 November 2014 in Johannesburg, South Africa will provide a deeper insight into the African retail opportunities and challenges by identifying the new African consumer, analyzing key market trends and practices and examining country specific case studies and our annual Retail Forum will be held on 4th December 2014 In Nairobi thus do not miss the get to know the retail trends regional.

We believe that the Magazine will be useful to your organization in one way or the other and welcome your feedback and comments by writing to us on retail@insightretails. com and probably share with us what you would like featured on subsequent upcoming Issue, We urge our readers to subscribe to the magazine as we endeavor to deliver it at your doorstep. An online version of the magazine is available from the link: http://www. insightretails.com Finally, we thank all our readers and the entire retail industry stakeholders for your continued support and contribution.

This being our last 2014 edition, we wish all our partners and readers a merry Christmas and a prosperous new year.

Happy Reading!

Titus Korir Project Director & Associate Publisher

YOUR COMMENTS This is in regard to the Retail Conference held in Kakamega on 26/09/2014. We would like to sincerely thank you for organizing the event which I believe has helped many of us communicate and network with various solutions providers. Keep having such forums in the future.

Pritesh Patel & Deep H. Dhanani - Ukwala Supermarket (Kisumu) Ltd.

Please share your comments on our publication to retail@insightretails.com

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INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

08 556001

ISSN 2305-5561

9 772305

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elcome to our eighth edition of Insight Retail Magazine, a quarterly publication whose aim is to offer the retail industry and other interested readers insightful local and global news, trends and solutions on various industry topics.

RETAIL BUSINESS INTELLIGENCE DEFINING REGIONAL STRATEGIES

ISSUE 08 / OCTOBER - DECEMBER 2014

Unlocking Africa’s retail opportunities BE PART OF THE DISCUSSION BOOK TODAY TO RECEIVE 15% DISCOUNT | QUOTE: AFRA15 T: +44(0)203 033 2020 W: www.retailcongressafrica.com E: info@retailcongressafrica.com

Bakery innovation & evolution in retail INSPIRATIONAL SPEAKERS INCLUDE:

Leasing transforms retail sector

Dr David North CORPORATE AFFAIRS & GROUP STRATEGY DIRECTOR | PICK N PAY Jeremy Hodara CO-CEO | AFRICA INTERNET HOLDING Grant Brown COO | ZANDO Greg Azzopardi MANAGING DIRECTOR RETAIL ESTATE | MR PRICE Ramanathan Hariharan CEO | MAX, LANDMARK GROUP Greg Solomon MANAGING DIRECTOR | MCDONALD’S SOUTH AFRICA Christine Service COUNTRY MANAGER | DISNEY

- Case study outlook

Dispensing trends in Retail

CO-SPONSOR:

MEDIA PARTNER:

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Retail Technology trends

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- Omni-Channel retailing

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Editorial and Advertising Insight Retail East Africa Contributors Jaspher Ouma Trushar Kheita Joseph Kahuho Geoffrey Bulayi Ashley Myers Niel Maritz Farooq Jeylan James Macharia Wambui Mbarire Publisher Insight Retail East Africa © 2014 Insight Retail All material is strictly copyright and all rights were reserved.

Reproduction in whole or in part without the written permission of Insight Retail is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at the time of going to press, but we accept no responsibility for omissions or errors.The views expressed in the magazine are not necessarily those of Insight Retail or Retail Interchange Centre.

Retail Interchange Centre Ltd P.O. Box 36106 City Square 00200 Nairobi, Kenya +254 725 350 690 +254 735 350 690 email: info@insightretails.com

www. insightretails.com

CLUB 2013/14

Accounts Nominal Ledger Cashbook Objects Budgets

RETAIL POS & ERP SOFTWARE

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Sales

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Point of Sale POS Offline Restaurant Sales Ledger

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Pricing

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Multiple/Qty Discount Matrices Multi-buy Promotions Loyalty Cards

● Fingerprint Readers

RETAIL POS HARDWARE

Logistics

Sales Support

Stock Serial & Batch Nos. Item Classification Multiple Locations

Contact Classifications Quotations Sales Order

● Integrated Keyboards

Purchasing Purchase Orders Purchase Ledger

Magic Mirror

Hard Tag

Detacher Display Alarms

Multi Alarming Cable Tag Open Display Security

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RETAIL SECURITY Electronic Article Surveillance & Display Security Solutions

OTHER PRODUCTS

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CONTENTS ISSUE 08 OCTOBER - DECEMBER 2014

07 / NAKU SACCO 08 / LEASING CASE STUDY - TUMAINI 10 / TOMBAKE ENTRY TO KENYA 12 / BAKE CONSULTANCY – BAKE CONSULT 14 / ONE STOP BAKERY SOLUTIONS SHOP 15 / BAKERY ACCESSORIES 16 / OMNI CHANNEL RETAILING 19 / OIL DISPENSING CONCEPT 20 / WORLD CLASS SERVICE - WELLS FARGO 21 / WATER DISPENSING CONCEPT 26 / GETTING BAKERY RIGHT FOR RETAILERS 28 / RETAIL LEADERSHIP 29 / RETAIL FORUM 2015 CALENDAR 30 / RETAIL IN UGANDA 31 / RETAIL STATISTICS 34 / RETAIL CONGRESS

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+254.735.350.690 +254.725.350.690

RETAIL SACCO/FINANCING

Why Retailers should join the Sacco

NAKU SACCO SOCIETY LTD Service to members

Pamela Wanja.

CEO, NAKU Sacco

N

ow more than 13,500 members, NAKU Sacco boasts of tremendous growth having started with only 100 members in 1993 when it was established to promote the welfare and economic interests of its members. This year, the Sacco was among those registered to conduct deposit taking business.

Targeting employees in the vast retail industry, NAKU Sacco was founded by Nakumatt Holdings Limited and later opened up its service offering to other members drawn from retailers as well as attracting those from the East African region - Uganda, Tanzania and Rwanda.

“It is the only Sacco that understands retailers well due to their circle of payments and staff needs,” explains Pamela Wanja, the Chief Executive Officer. Other than the Back Office Service Activities (BOSA), NAKU Sacco operates a Front Office Service Activities (FOSA) office in Nairobi with plans to open more outlets in Mombasa, Kisumu and Eldoret as well as in the countries it has members. To further reach out to more members, every September, the Society conducts an open day event which precedes the annual special delegate meeting held between on a date January and April.

Investing in an integrated and robust banking software has provided a much more efficient environment within which to do business. The Sacco’s operations have also improved to include mobile alerts on membership application approval, loan application, disbursements, attachment of guarantors and late payments. The software has also facilitated automation of loan appraisals, where one can check on loan eligibility, share deposits and guarantors. NAKU Sacco’s revamped user-friendly and interactive website will soon enable all its members’ access their accounts online.

Mrs. Wanja notes that after the ratification of Sacco bylaws, it is now open to the public. “We are in the process of rebranding and re-launching,” she reveals. Potential members joining the Sacco are guaranteed of efficient management and processing of salaries including salary advances as well as other FOSA and BOSA services.

The benefits of the Sacco to a retail employee include development of a savings tool and culture, facilitation of loans, earning of interests and dividends pegged on one’s savings and share capital respectively.

“Members should also be assured that their savings are intact in case they change jobs within the industry as long as the retailer has an arrangement with the Sacco,” the chief executive says.

During the 2014 International Co-operatives Day, the Society was recognized and awarded for being the second most improved Sacco countrywide.

BOSA PRODUCTS AND SERVICES • Normal/development loan • Refinancing • Emergency loan • School fees loan • Booster loan • Product loan • AA-driving course loan • Benevolent fund FOSA PRODUCT AND SERVICES • Salary processing • Savings accounts • Holiday account • Group account • Junior savings accounts • Fixed deposit account • Standing orders • Bankers cheques • Salary advance • Dividends processing • Overdraft facilities • FOSA loans • Express loan • Clearance of cheques • M-banking • SACCO link/ATM cards • Safe custody • Disbursement of BOSA loan HEAD OFFICE: Nairobi UPCOMING BRANCHES: Mombasa | Kisumu | Nakuru East Wing, 1st Flr, Liberty Plaza, Mombasa Road BOSA: 0726 006 994, 0700 045 058 FOSA: 0705 947 748, 0713 889 488 info@nakusacco.com www.nakusacco.com

INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

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LEASING IN RETAIL

Equipment Leasing Transforming Retail Industry – Tumaini Supermarket

T

he concept of equipment leasing is still novel in the industry, expound on how to go about it as a retailer and what one needs to consider

Indeed, leasing is a new concept more so in the Kenyan perspective as it is mainly covered in the formal education and professional forums. It generally entails use of someone’s assets over a productive life and having the option to purchase off at the end of the productive life with periodical lease rentals payments Factors to consider while deciding whether to go for leasing include; • Initial capital outlay • Available finances • Tax saving effect • Company capital structure • Assets/ capital ratio • Leveraging ratios/ Debt ratio Are all retailers – large or small eligible for leasing?

Yes, retailers of any size can be eligible for leasing. The difference could be how much the leasing will involve and so the periodical rentals. Interestingly, in the developed world even individuals go leasing on their personal properties such as cars Lease or buy…this is normally a big question to many businesses As an investor you need to evaluate the pros and cons of each. For instance, in leasing you do not require initial cash outlay whereas buying involves actual cash outlay What is the biggest advantage of a retailer going into leasing?

Cash flow management. Funds can be directed to more income generating projects. Tax savings advantages – value added tax (VAT) on lease rentals is claimable and also the lease amount is also an allowable expense Any setback of leasing to a retailer?

In cases where one relies on leasing, he has no ownership to any assets thus has a weak asset base translating to a weak/ poor balance sheet The talk on freeing up your money when it comes to leasing is inevitable. Has it worked for your business so far?

Yes, it has really worked for us

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Is the repayment period favorable to a retailer?

Retailers of any size can be eligible for leasing. The difference could be how much the leasing will involve and so the periodical rentals.

Interestingly, in the developed world even individuals go leasing on their personal properties such as cars

From our end, we have never had any glitches with payment of the periodical lease rentals as we have scheduled them on a quarterly basis to avoid any surprises.

Why a leasing solution from RentWorks East Africa?

Initially, we had long term borrowing arrangement which was not working well for us due to fluctuations and inconsistency of interest rates. With leasing, once one has signed up the contract that’s it.

What kind of equipment do you require / recommend for leasing to peer retailers?

• Supermarkets shelving • Bakery & Deli equipments • Computers and accessories After the lease period elapses, what happens to the equipment? Does this warrant a right to purchase it automatically?

Though from our end the lease period is yet to expire, it is our hope and trust that as agreed with the providers that at the contract stage, we will have the priority to purchase it In your opinion, where do retailers go wrong with the leasing business? What should they do to overcome the same?

Someone might take leasing as an alternative to buying which weakens the asset base and thus weak financial status. A retailer should consider leasing to the extent where your cash flow allows. Do not engage in leasing because everyone is in it Can one use the leased equipment as a security for other financing?

The ownership is yet to be transferred and thus it is not possible What feedback do you wish to give the leasing fraternity/solutions’ providers?

Rework the lease interest charge as this might be the hindrance to more retailers opting for it.

y str r Pa eete Sh

Tombake Ventures in Kenya

With over a century’s experience in the baking industry, Tombake prides in manufacturing and supplying quality innovative equipment to help its clients improve the quality of their baked products. Insight Retail Magazine spoke to Niel Maritz, the company’s Sales Executive/ Export Division on its recent entrance into the Kenyan market by appointing Nairobi Kitchen Care (NKC) as its agent Kenya is one of your newest market, which other African countries is the company present in?

Tombake made a decision to enter Africa after seven years of building its base in South Africa, our current target market is Nigeria, Angola, Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Kenya and Tanzania.

What informed your decision to venture into Kenya?

• Supermarket growth • Population growth • Rural inhabitance moving to the city • The transformation of bread being the staple food instead of maize meal Does this mean that retailers were sourcing for the equipment from the countries that Tombake is present?

Yes - Kenyan entrepreneurs were sourcing for equipment from Europe and China and Tombake saw an opportunity to introduce a South African manufacturer to compete with these manufacturers.

What advantages does the equipment have over what users are accustomed to?

Tombake’s range of equipment is manufactured with the latest electronic components and insulation material guaranteeing the user reliability, fuel saving and competitiveness in price.

Briefly touch on your target market with regards to Kenya.

Are you looking at working with retailers only or other ‘smaller – medium’ users as well?

The company’s target includes supermarkets, hotels and restaurants, stand-alone bakeries, hospitals and Army bases.

Simply put, we cater for all sectors of the market.

Is there a difference between Tombake’s bakery equipment and those that NKC sells?

It is important to note that the Tombake range is compatible to the one that NKC sells.

Kenya’s cottage bakeries is coming up? Are they factored in yet?

Yes, we are interested in targeting this sector of the market and will in future target it through NKC. How is the Kenyan response so far?

The first batch of equipment has just arrived in Kenya and will be installed in some of the major supermarket stores. The response to the Tombake quality will be monitored over the next three to six months.

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Other than the bakery equipment, what other equipment are you keen at introducing into the Kenyan market?

The opportunity presented is enormous. Our next phase will see Tombake introduce its range of equipment with regards to hot foods. These includes kitchen and catering equipment, kombi steamers and dishwashers.

What prompted the decision to partner with NKC? Tombake’s major objective while entering the Kenyan market was to find a reliable and experienced agent in bakery equipment as well as maintenance of the same.

NKC perfectly fitted the profile we were looking for.

Generally, what drives the demand for your equipment in the African countries you are present in?

Apparently, the ovens built are robust and solid. Tombake understands the type of equipment required in the African market resulting in the use of thicker materials, more reliable electronic equipment applying mechanical rather than computerized controls.

From your vast experience, what advice would you urge those investing in the bakery units within retail chains to observe and work on during the implementation phase?

Tombake made a decision to enter Africa after seven years of building its base in South Africa, our current target market is Nigeria, Angola, Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Kenya and Tanzania.

• Consider the issue of mechanical versus computerized controls • Go for thicker gauges of material used for the oven structure translating to longevity and robust manufacturing • The equipment should have and run on motor and gearboxes from leading European manufacturers.

PREMIXES

Whipping Cream & Créme Patisserie .Sugar Paste - Fondant.Glazes . Cake Mixes . Sponge Cake . Fillings

Main mombasa Road Allbid house, Opp ASL, P.O. Box 49938, 00100. Nairobi.

Tel: 020 2133076 / +254 - 727 246 209/+254 - 725 351 079 Email:info@nkc.co.ke web: www.nkc.co.ke

BAKERY CONSULTANCY

The Basics of Setting up a Bakery, Butchery or Deli

I

n many homes bread can pass as a staple or convenience food. Though consumed mainly at breakfast or as a snack, bread is also taken at lunch or dinner time, usually as burgers.

Today, as retailers invest in a new store, most of them do not fail to incorporate a bakery considered a crowd puller. Bread as well as other pastries – muffins, donuts, cookies, cakes and scones are just but a few of the products that feature in most bakeries.

On the flip side, while a store’s bakery could be busy churning out various bakery products that are expected to attract customers, a retailer could easily not be making any returns on investment as the same products could literally not be ‘moving’ as expected. “It could be the cost – many retailers work with estimates to set up the price of these bakery products, some use very expensive ingredients while some have the wrong products on their display shelves. This again could be because of the store location,” explains Simon Karinga, the head of Quality Assurance at Bake Consult.

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The company helps a bakery come up with the right recipes based on factors such as location (target), staff, demographics, purchasing power, quality, variety and space that a store occupies.

To ensure that retailers get it right the first time, Bake Consult has been helping them with the best advice on unit sales price, introduction of products based on market demand, maximum utilization of machinery to realize return on investment in the shortest time possible, staff training, food safety and bakery management.

The company helps a bakery come up with the right recipes based on factors such as location (target), staff, demographics, purchasing power, quality, variety and space that a store occupies. Interestingly, bakery equipment is not a major issue contributing to the losses.

With over 2,000 products from which Bake Consult clients can choose from and adapt as their recipes keeping in mind the above factors, Mr. Karinga says retailers can either choose to work with the company either from scratch or as a way of upgrading their bakeries. It is always recommended that a retailer consults the company

Product Costing

on the onset of setting up a bakery as then the company is able to advice on the necessary safety standards. Those who have already ventured but are not realizing sales have the opportunity to upgrade their bakeries through Bake Consult. Some of these upgrades have seen sales amplify up by up to 300 per cent.

At the same time, when it comes to food handling, safety standards are inevitable. Bake Consult will ensure that the Hazard Analysis and Critical Control Points (HACCP) system for food safety is incorporated too. This, he explains is basically an 11 steps procedure – the do’s and don’ts that give these perishable foods a more lifespan. For instance, HACCP standards adhered to the latter will ensure that bread can last up to five days instead of six hours in cases where the same has not been adhered to.

INTERNATIONAL BAKING INSTITUTE As retailers seek its services, Mr. Karinga reveals that the company has realized the need to invest in capacity building among

many a retailer’s bakery staff. “You could get everything right but you forget that the end product lies with how the staff will whip the ingredients together to come up with attractive well done products,” he explains.

This is the reason behind the company’s decision to introduce what it refers to as ‘high-end training’ based on an international syllabus come January 2015. Though many these staff have been trained through various in-house programs that Bake Consult offers as part of the package, Bake Consult’s International Baking Institute is informed by the general unavailability of skills that the market readily requires.

“There are more than 15 types of breads and a wide variety of cakes that a retailer can think of introducing for his customers however proper skills to achieve this is a big challenge,” he notes.

With regards to premixes also an area that Bake Consult has ventured into but which some bakeries find it difficult to invest in, Mr. Karinga notes that retailers should remember that some of the simple cheap procedures preferred could cost one millions. Premixes though costly ensure consistency and quality is achieved while reducing on the chances for errors.

Other than advising its clients – mainly supermarkets, stand-alone and large bakeries on getting it right, Bake Consult’s services also include deli and butcheries which have become synonymous with supermarkets too. “Among the issues, we look at here include, staffing/training, menu, food safety, management and meat cutting,” he explains.

INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

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BAKERY SOLUTIONS

Nairobi Kitchen Care Limited

One stop bakery solutions shop

K

enya has been experiencing a revolution as more supermarkets and stand-alone bakeries whip out products fiercely competing with the traditional bakers. According to a report on bakery in Kenya by Euromonitor International, artisanal goods are performing well in the market because they are found in urban areas where there is a sizeable population, and many consumers prefer to purchase them due to their affordability and freshness. But even with such changes in the retail arena, the ability to prepare and attractively display fresh bread and other pastries and even store the products under the required conditions cannot be achieved without proper equipment.

For this to be accomplished, Nairobi Kitchen Care Limited remains the preferred choice for bakeries – larger or small when it comes to bakery equipment. “We pride ourselves as being the specialists,” explains Farooq Jeylan, the company’s Regional Sales Manager adding that for over four and half decades, it remains the one stop shop equipment provider for retailers, the hospitality industry and other players.

At the company’s main office located along Mombasa Road, clients are assured of a wide array of equipment for deli, bakery, butchery, grilling and display. The company also stocks equipment used in the hospitality industry; an area which has also evolved to include coffee and tea shops as well as ice cream parlors.

COMPLETE SOLUTION “Our range of bakery equipment is endless these include rotary ovens with provers, spiral and cake mixers, dough sheeters, bread slicers, refrigerated and warm displays for pastries and bread,” Mr. Jeylan explains. There is also a wide range of baking accessories – locally fabricated and imported.

As Nairobi Kitchen Care Limited prides in stocking all the equipment that bakeries require, Mr. Jeylan points out that the company’s competitive edge remains in its ability to understand the needs of its clients. “Once a customer approaches us, many are the ones who have no clue of what they want. Based on their budget, target market, potentiality and space, we conduct a feasibility study to gauge the viability of the bakery project and advice accordingly,” he further explains. This enables a client make a decision based on facts other than plunge into a business that may not work for him.

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“We have solutions for everything,” he adds.

Once the above is on the affirmative, Nairobi Kitchen Care Limited will work with the client in coming up with the bakery concept, design and set up. The company will also provide equipment maintenance of which carry a one year guarantee. Secondly, there are those seeking for bakery upgrades. With the high cost of electricity taking a toll on many businesses, to cushion against these, bakeries have been conducting upgrades especially for the ovens.

Still, he advises that start up bakeries work best using electricity or gas ovens but for mass bakeries, the kerosene ovens – apparently the latest technology are the best. Mr. Jeylan however, cautions users against wrong usage especially overloading the ovens.

Clients are assured of a wide array of equipment for deli, bakery, butchery, grilling and display. The company also stocks equipment used in the hospitality industry

To further compliment the equipment and accessories, Nairobi Kitchen Care Limited has diversified into the premix arena. As the sole distributor of the Turkish Krater range of premixes, the company has been introducing them to retailers as well as other stand-alone bakeries. Mr. Jeylan explains that the company stocks Krater’s product categories including powder whipped cream, pastry additives, baking powder, fillings, sponge cake mixes, cake mixes, ice-cream bases, toppings, pastes, decorative dough, dessert mixes and chocolate.

“Employing a pastry chef can be expensive,” he notes. Today, the pastry area has become a creative profession full of innovation along with the new products and production technology.

For bakeries grappling with low sales as well as inconsistency and keen on keeping costs, premixes are the way to go. Mr. Jeylan conducts seasonal interactive demos as well as one on one training session on how whip attractive delicious pastries while using Krater premixes.

He notes that potential Krater users are assured of flexibility further allowing room for innovation and creativity.

Other than the Mombasa road office, Nairobi Kitchen Care Limited operates branches in Nairobi city center, Mombasa town and Uganda however, through distributorship mainly serving clients under the hospitality portfolio.

Bakery Accessories

By Joseph Kahuho – Kahujo Enterprises

H

ave the right baking equipment and accessories and know how to use them

Whether it is a start-up bakery or a large well-established facility, they all require equipment and other accessories to prepare baked products.

Without them, one will not be able to whip up those mouth-watering delicious pastries and bread to sell to the customers even amidst the most experienced pastry chef.

Among the accessories that bakeries can do without include working tables and stainless steel sinks, proofers, baking tins and trays as well as cake cups and tins. Started in 2004, Kahujo Enterprises are the accessory masters supplying them to a wide range of bakeries – small or large.

Joseph Kahuho of Kahujo Enterprises notes that bakery accessories ought to be replaced within three and five years due to wear and tear and depending on the usage contributed by customer demand and innovation. The company has been able to match and achieve industry limits driven by consumer trends. “On placement of an order, our timely delivery of quality baking accessories is guaranteed as we source for the raw materials locally,” he explains adding that they are manufactured from either Aluminum or Aluzinc for best results while the sinks and tables are made from fabricated stainless steel.

BAKERY EQUIPMENT When starting a bakery, the business owner can begin with smaller capacity equipment and upgrade as the business grows. Ovens, mixers, bakery racks and storage equipment are necessary items for a new bakery. Bakery racks come in handy during the during production process - for storing, cooling, freezing and baking. Some bakery racks are built to hold specific types of pans such as bun pans or bread pans.

Oven racks are built to withstand the high temperatures mainly in commercial bakery ovens and can roll right into the oven.

Ovens and fryers are another essential equipment in any bakery. The type of ovens a bakery uses depends on the amount and type of baking.

For instance, a start-up bakery with limited space and funds can choose a smaller convection oven to meet the needs of the business. Double convection ovens are available to use two separate temperatures while baking. Larger bakeries use a rack oven that allows the baker to roll an entire rack of baked goods into the oven at one time. Additional ovens for a bakery include deck ovens and equipment with revolving trays.

Bakeries also keep donut fryers to prepare fried goods as well.

Bakeries must have mixers to prepare multiple batches of dough for baking. Start-up bakeries may choose a smaller mixer to keep up with the needs of the business while larger mixers are required for high production levels. A proof box provides storage space for dough set aside to rise. Mobile proof boxes hold sheets of dough and bakers can roll it out of the way when necessary. Some established bakeries have built-in proof boxes, which the baker can roll racks of dough into to rise.

The art of baking involves accuracy, skill and dedication to the trade however, choosing the appropriate equipment and accessories gives the baker the opportunity for greater consistency and quality products. At Kahujo Enterprises, we ensure that the accessories match up with the equipment invested in.

Our client portfolio includes Tuskys, Bakers Corner, Beta Bakers, Home Depo, Quickmart, Matothi among others…

Retail Technology Trends

V

ery recently, the current CEO of GAP, the global fashion retailer, stepped down to make way for Art Peck, to be at the helm of affairs of this giant fashion business.

On the face of it, it is just like any other corporate leadership shake-up, but for industry insiders, it is a paradigm shift in the profile of retail CEOs. Art has been heading the division for growth and digital sales for GAP. This reveals a lot in terms of how retailers are looking at multi-channel retailing as a key driver to business growth. Digital sales channels are increasingly contributing significantly to the revenue and profitability growth for retailers, particularly those that have the right leadership that is able to tide this wave of change in customer behavior and expectation. It is expected that in the coming years, most retailers will be looking for CEO’s that have a wider technical and digital expertise rather than plain business and retail acumen.

Omni-Channel Retailing.

The buzz word of the decade

Multi-channel retailing, whereby retailers were enabling multiple channels to reach their customers including brick and mortar stores and online-stores, was the buzz word that emerged towards the close of the last century. The last decade, however, has seen retailers talking about omni-channel retailing.

This is the evolution from multi-channel retailing into a more seamless customer experience across all channels. Omni channel retailing is more about unified customer experience across all sales channels as the digital sales channels also evolved from simple web-stores into mobile apps driven and social media enabled sales channels.

The question that retailers are continually asking themselves is “how do I create the same experience for my customer regardless of whether he is in my physical store on the street, or on my web store, or is using my mobile app to make a purchase?”

Retailers are investing heavily in continually improving the customer experience, particularly in the virtual stores. As much as there is huge investments in creating a brick and mortar store to create a welcoming ambience, there is even higher investment in creating a web store or a mobile app that not only makes the purchase easier, quicker and seamless, but also induces impulse purchase. Complex algorithms work in the back ground, churning terra bytes of data, as a consumer is browsing through the pages of a retailer’s web site, capturing every mouse click or navigation on the page. As in a physical store, the sales representative tries to upsell to a customer who, for example, is buying a certain business book – “sir, if you are buying this book, you may also like this other new book that’s just been released”, a web store or mobile app is designed to perform the same function and induce impulse purchase.

In the past, one would go to buy a dress or a suit, say with a friend or a relative, try out the suit in the store and get the friend’s or relative’s opinion before making the final purchase decision. This has evolved into trying a dress in the store, taking a photo instantly and sharing it online with friends on the social media and getting instant opinions.

Fast Forward a little bit, you don’t even have to put the dress on….. in-store digital systems can digitally fit the dress on you and show you how it will look

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INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

on you. Not only that, you can share the digital photo on social media, get opinions from friends and make your purchase decision. Fast Forward a little bit more, you can now do the same thing on the web-store of the fashion retailer or with the retailer’s mobile app – how cool !! The customer enjoys the same experience regardless of whether its in the retailer’s brick and mortar store or click and order webstore or mobile app.

By Sailesh Savani, CEO/ Founder of CompuLynx

As much as there is huge investments in creating a brick and mortar store to create a welcoming ambience, there is even higher investment in creating a web store or a mobile app that not only makes the purchase easier, quicker and seamless, but also induces impulse purchase.

This is just one example of fashion retailing. The same analogy applies to all other retail verticals including grocery, books, toys, consumer electronics, furniture, fast food, personal care.

Ikea, Best Buys, Barnes & Noble, Tesco, Boots, Target are but just a few retailers who are successfully driving omni channel retailing and seeing significant revenue and customer base growth in their businesses.

The world is changing rapidly and East African retailers are challenged with adapting to this change, responding to customer demand and aligning to customer behavior. East African retailers are taking baby steps towards multichannel retailing as we speak. Retailers who ride this wave will enjoy a stronger customer loyalty and experience exponential growth that will reinforce their chances of existence in the coming future as global retailers eye East Africa as the next most growth potential market.

‘Am I doing what I am most passionate about?’ I always ask myself this question every single day I wake up.

I

have written for Insight Retail frequently, purely from an external view point as someone who is absolutely passionate about the retail industry where I love to share my thoughts and ideas to the other avid readers of this magazine. Up and till now, I was not actively involved in the retail industry directly. But that has now changed.

As human beings, I believe we all have a purpose in life.

A destiny that defines who we are, what we do and who we become. My personal life purpose is that, ‘I exist in order to make a difference to the lives of my family, my people, my customers and my suppliers.’

For a very long time, I have been looking at the retail business model in order to fulfil my life’s purpose. I believe there is no greater way to touch and impact the lives of so many people at one go. Retail is my passion and I will use this desire to create a ‘Revolution in Retail.’

This is my destiny.

I am therefore delighted to say that my new company Society Stores has launched its first retail store in Kenya through the acquisition of Leens Supermarket located in Thika. This will be the first of many outlets to come as we look to position ourselves as one of the ‘Best Retailers in Africa.’

This has been a lifelong dream that has come true and I look forward to sharing my journey with you as we grow. To me retail isn’t just about the huge turnovers and profit margins that one can make. It is beyond that. It is about focusing on a business model that has the ability to positively influence the lives of millions of people who everyday shop in the retail outlets, the thousands of jobs that are created by this industry both directly and indirectly and finally a business on which suppliers can thrive and also grow their businesses.

Retail can change the entire landscape of a country. That is my vision, my wish and my hope that this business can be the start of something amazing that has a huge impact on our Society. It is about leaving a legacy behind.

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INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

06

RETAIL BUSINESS INTELLIGENCE JANUARY/MARCH 2013 Q1

RETAIL BUSINESS INTELLIGENCE ISSUE 06 / APRIL - JUNE 2014

CRACKING CUSTOMER LOYALTY GLOBAL LOYALTY TRENDS LOYALTY TIPS RETAIL HEALTH & SAFETY LOYALTY MARKETING RETAILER ASSOCIATION

SHRINKAGE IN RETAIL RETAIL INTELLIGENCE EAS TECHNOLOGY RISK MANAGEMENT MOVING ON: FRANCIS MASWILI

556001

“One of the huge mistakes people make is that they try to force an interest on themselves. You don’t choose your passions; your passions choose you.”

Jeff Bezos, Amazon.com, Founder & CEO

AFFORDABLY

ISSN 2305-5561

TRUSHAR KHETIA Founder & CEO – Tria Group @trushark

9 772305

Why I Love Retail?

REACH YOUR TARGET AUDIENCE

Milk Milk&&Oil OilDispensErs DispensErs

THE OIL DISPENSING CONCEPT

T

oday, many city residents have fast embraced the concept of dispensing milk through the now all popular automated dispensing machines (ADMs) which have given milk consumers an opportunity to purchase clean and affordable fresh milk. Behind the ADM- Italian borrowed concept is Farming Solutions Limited, a company which has diversified the dispensing concept further.

According to Geoffrey Gitonga, the company’s chief executive, retailers can invest in ADMs not only for milk but also for retailing edible oil, yogurt and fermented milk popularly known as ‘Mala’. This quest to diversify has seen Farming Solutions venture into an oil dispensing pilot project. “Our feasibility studies have shown that customers are in need of affordable, clean and quality edible oil,” he explains.

During a recent retailers’ conference held in Mombasa County, while visiting some of the local retailers, the opportunity to further roll out the concept was presented to replace the manual oil dispensing practice that the retailers have been using to enable consumers purchase the commodity.

Benefits of Dispensers’ in retail include

CROWD PULLER The automated dispenser increases traffic into your shop. Consider this; milk is a must-buy item for most people – this translates into increased sales of other items in the shop.

PRODUCT PRICE REDUCTION The automated dispenser eliminates the process of packaging, thus allowing for the product to be sold at a much cheaper rate.

NO COINS NEEDED The new automated dispensers are operated using a digital display control panel. One simply needs to input the amount required and the product is dispensed.

AFFORDABILITY Automated dispensers sell small quantities of essential commodities (like milk) for as little as Kshs. 1.00. This not only makes it affordable but is able to cater for clients on varied budgets and needs.

ECO-FRIENDLY The automated dispensers are eco-friendly as the customer can reuse or refill using plastic or glass containers.

This reduces pollution of the environment.

Celian House, Embakasi Village Next to Total Petrol Station Mezzanine Floor, Room No. 6

+254 722 249 600 www.farmingsolutionsltd.com

info@farmingsolutionsltd.com INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

19

Retail RETAIL Security SECURITY

WORLD-CLASS SERVICES WELLS FARGO LIMITED

ASHLEY MYERS, Operations Director Wells Fargo

T

hreats to business security can come in all forms and may include anything from fraud, burglary, fire, vandalism to terrorist threats.

While a comprehensive insurance policy will help should the worst happen, proactive strategies should be put in place to minimize threats to security occurring. One such strategy is hiring a private security service provider to supplement efforts already put in place to curb the insecurity menace.

For more than three decades, Wells Fargo Limited has continued to do what it does best – security. For a company that started its services concentrating on bank fraud investigations, business has purely grown on client recommendation and demand; factors that Ashley Myers, Wells Fargo’s Operations Director admits continue to drive the business.

Today, 36 years later with nearly 6,000 employees, Well Fargo’s clients range from financial institutions, retail, leisure and tourism, corporate institutions as well as transport and logistics countrywide mainly focusing in Kenya.

THE RETAIL SECTOR Wells Fargo are well known for their expertise in the banking field however they also provide professional services to major retail institutions across including shopping malls and supermarkets – these two have become synonymous. “We understand the need for professional, stringent and efficient systems and services,” explains Mr. Myers. By working closely with its clients to offer effective security solutions and deliver needs that will create a safe environment for employees and consumers, the company specializes in electronic security services through provision of state of the art equipment including, alarm systems for intruder detection, CCTV, access control, off-site date storage, fire detection and electric fences. Other notable services provided to the retail sector are cash management, cash and valuables in transit (critical in reducing potential theft by removing the takings from the store at the end of the day) and guarding. “These services are further complimented with our Fargo Courier services tailor made to suit a client’s needs,” adds Mr. Myers.

But even as retailers get their act together with regards to security, he notes that businesses ought to do it right. First, it is vital to concentrate on both front and back office. Keeping and maintaining a good working relationship with the local and national security within the area in which a/their stores are located is critical too.

At that level, a branch manager should be responsible for keeping and maintaining a business friendly relationship.

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INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

With regards to outsourcing the security component, he recommends that retailers need to seriously consider how they allocate the various activities involved. “There are two schools of thought - one is to split services so, if one provider is handling the cash in transit service, let the other provider handle guarding. This is seen by some as minimizing collusion chances. We however prefer to stand by our reputation and expertise and give a 5 star service which covers all five of our services so that the client has only one company to hold totally responsible with the knowledge that their security is in experienced hands,” he advises that a retailer should draw a clear business line with regards to the expected services – a precaution to avoid the ‘blame games’ between providers when an incident occurs if one has too many service providers. However many security provider are involved, a retailer should be at the core of the process by ensuring that he gets regular security briefs and seeing that these external personnel are often rotated to avoid deep interactions likely to undermine a store’s security.

Though Wells Fargo remains undeterred by the proliferation of guarding providers thanks to the ongoing trend of recommendation and the many upcoming growth of shopping malls and stores, Mr. Myers notes that proper guarding services require both a well laid out contract between the supplier and client as well as clarity on the payment of staff to ensure that retailers are not inadvertently encouraging the illegal employment of security personnel who are not being paid the gazette wage, overtime and housing allowance as provided by law, which some businesses seem to bypass.

Still, retailers are advised to remember that while having insurance is critical, calculating the cost of loss reduction versus that of security is a major factor in determining how to go about procuring security services. “For instance, store shrinkage needs to be worked out versus the cost of quality security and how an increase in one can drive a reduction in the other,” he explains. At the same time, they need to understand the workings of the security systems; especially CCTV and alarms, before making any commitment to invest in them citing a big disconnect between the quality of hardware and software involved and the management and usage of the system including backup and monitoring. Mr. Myers notes that a good understanding by retailers of their store’s security needs, assisted by consultation with experts in the field will greatly increase the profit returns from their units by taking suitable and effective preventative measures.

Water DispenserS

A clean drinking water solution the dispensing concept

T

here was a time, bottled water was a status symbol of sorts but with more cases of unreliable at times unhygienic tap water, the treatment (filtration and purification) and vending of this precious commodity continues to be a thriving businesses in the response to consumer demand for safe drinking water.

Using state-of-the-art technologies that require minimal pre-existing technical expertise to operate, Amrut Filtration Limited and Indcare Africa Limited are ensuring that consumers have access to safe and affordable water. Retailers as well as stand-alone water stores have the opportunity to invest in the purification and dispensing system from the Indian based company which has also operated in Kenya for the last eight years targeting the domestic, commercial and industries water consumers. According to Rana Yogendrasinh, the company has further diversified into water automated dispenser machines which can be installed in either the urban or rural areas. “We are working with retailers to have the water dispensers installed in their stores for consumers to access affordable, clean and safe water,” he adds. The commercial water dispenser unit can be customized and branded to a retailer’s requirements.

The dispensers’ purifying unit allows any form of raw water –borehole, spring or tap making it fit for consumption.

Still, retailers should not be worried about equipment maintenance as the company has invested in a service centre providing full technical support guaranteeing the users not only spares parts but also training the users even though the machines are user-friendly supported by low maintenance costs.

Mr. Yogendrasinh asserts that retailers investing in a water dispenser machine are able to satisfy varied consumer needs with affordability being at the fore front taking into consideration the element of reduced cost of purified water which pushes the cost of similar commodities/ brands in the market higher.

While ensuring that through this innovation and diversification, a retailer is able to promote his consumers’ good health and wealth, he is guaranteed a good return of investment as the dispensing concept of such commodities has proved to be a crowd puller thanks specifically due to the affordable attractive prices compared to the traditional bottled water.

The demand for high-quality drinking water and a business opportunity among retailers and other entrepreneurs to offer comparable quality water at a lower price is far from over.

CONFERENCES SPEAKERS

DELEGATES & NETWORKING

CERTIFICATE AWARDING

NYERI: July 2014 KISII: August 2014 KAKAMEGA: September 2014

THE CUSTOMER IS ALWAYS RIGHT – False or True?

O

ne of the long-standing theories of retailing is that the customer is always right. Managers and floor staff will discourse for hours trying to convince others to their side of this argument. The facts are clear and there is a definitive and absolute answer to this age-old query.

The phrase “The customer is always right” was originally coined

by Harry Gordon Selfridge, the founder of Selfridge’s department store in London in 1909, and is typically used by businesses to:

store then opens and all the mixture (alcohol, roast meet etc) contained there floods the young man and his counter!

SCENE TWO: A cashier to the customer: “Sorry sir, but we don’t have coins; can I offer you sweets or a matchbox instead?”

Customer takes the sweets, throws them on the cashiers face and uses very abusive language, walks out and leaves the whole shopping, to the disgust of staff and shoppers.

So, is the Customer always right? Five reasons why this is not always the case: 1.

2.

3.

4.

5.

When It makes employees unhappy When it gives abrasive customers an unfair advantage Some customers are just bad for business When it results in worse customer service from the staff Some customers are just plain wrong

1. Convince customers that they will get good service at this company 2. Convince employees to give customers good service maybe even fear them

The fact is that some customers are just plain wrong, those businesses are better of without them, and that managers siding with unreasonable customers over employees is a very bad idea, that results in worse customer service. So put your people first. And watch them put the customers first.

Fortunately more and more retailers are abandoning this maxim – ironically because it leads to bad customer service. So is the customer always right?

In conclusion, it is important to observe the adage that “CUSTOMER IS ALWAYS KING”. The King may be wrong but will always remain KING.

SCENE ONE: A customer walks into the alcohol counter of the store, red eyed and in a total foul mood. He goes straight to the counter salesman, grabs him by the shirt and shouts: “You sold me a lousy drink for lousy money, give me back my money or I beat you!” His food

JASPER OUMA DMS LTD - CHIEF TRAINER 0722 726055 jasper@dms-train.com

Getting it Right – Running a Bakery

A

s Joseph Kituku, the Head Chef for Bakery and Deli at Mulley’s rightly puts it, the aroma of freshly baked bread wafting down the aisles of one’s local supermarket is most likely to enhance a shopper’s experience.

Welcome to the world of modern supermarkets – they have become a one stop shop; evolving from just selling consumer goods to diversify into butcheries, groceries’ section, dispensed water including the bakery and deli (food). Thanks to the busy lifestyles among most urban residents, the need for one stop supermarkets has become inevitable. Most contemporary supermarkets come with in-house deli and bakery sections where food, bread, cakes and other pastries are made.

“It has become a crowd puller,” notes Mr. Kituku. That aside, first, running a bakery successfully requires professionalism. He points out that a bakery can easily build or lower a supermarket’s profile hence the reason to not only have a trained and experienced chef but also ensure that the staff receive proper in-house training and retraining from time to time. Motivating and providing the tools needed, will also contribute to providing quality products and customer service.

Aware that today’s consumer is conscious and informed, Mr. Kituku notes that bakeries need to constantly diversify their products offering. There has been a shift in the eating habits as consumers are keen on a product’s nutritional value. This is this reason that a bakery should ensure that a consumer’s needs or requests are met. “Eggless and sugar free are just some of the products’ features

26

that have become the order of the day,” explains the Kenya Utalii College trained chef.

Know your area and competition. Strive for a location with a customer base. Mulleys Highway branch, along the busy Nairobi – Mombasa road which boasts of an expansive bakery and deli remains a big attraction among residents of the growing Mlolongo town. Other than serving as a transit point for trucks from Mombasa to Western Kenya and the Eastern Africa countries, various middle-class residential estates have come up.

The branch’s bakery has more than 35 different products which Mr. Kituku reveals are churned out depending on the season and time. “There are products that move during the weekends, school holidays or the festivities,” he notes. Complementary items and offers arealso factors that contribute to how bakery products are purchased.

It is not only the aroma that drives consumers to the bakery section. As informed as he is, the buyer is food handling and cleanliness, recipes and display. Thus getting it right means that a supermarket will not only invest in professionalism but also consistency in recipes used to achieve quality products which match the costings.

Even as some move into premixes to drive growth, quality and consistency, Mr. Kituku believes that bakeries which have invested in professionalism by employing the right people can seek to come up with their own premixes. “Supermarkets with various bakery branches can come up with its in-house premix prepared from one source and supplied within,” he says adding that this helps achieve consistency.

Joseph Kituku Head Chef, Bakery and Deli.

Mulley’s

INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

RETAIL EVENT CALENDAR 2015 These are events done annually at a regional platform with an aim of sharing with retailers the new trends, technological changes, training solutions as the supplier get to network and offer solutions which is available as per their needs and capacity at that particular time Who should attend: Retail owners, Managers, Head of Departments / supervisors from retail outlets within the regions covered Duration of the event: All our 2015 events will be a whole day (1Day) per region.

REGIONAL EVENT DETAILS

Kenya

3rd

November 2015

Uganda

1st

March 2015

Tanzania

1st

June 2015

KENYA REGIONAL CLUSTERS: REGION

PERIOD

VENUE

TOWNS TO BE REPRESENTED BY RETAILERS & ADJACENT TOWNS

North Rift

February

Eldoret

Kapsabet, Nandi-Hills, Kitale, Iten, Kabarnet, E/Ravine, Eldoret & Its adjacent towns

Central Rift

April

Nakuru

Naivasha, Gilgil, Nyahururu, Olkalau, Njoro, Elburgon, Molo, E/Ravine, Nakuru & Its adjacent towns

Central/ Eastern

May

Meru

Central Kenya

July

Nyeri

Muranga, Embu, Nanyuki, Nyahururu, Karatina, Narumoru, Nyeri & Its Environs

South Rift & Nyanza

August

Kisii

Kericho , Sotik, Bomet, Narok, Keroka,Migori, Homabay, Kisii & Its adjacent towns

Western & Nyanza

September

Kakamega / Kisumu

Kakamega, Mumias , Nambale, Busia, Bungoma, Webuye, Malaba, Siaya, Ugunja, Vihiga, Kisumu & Its adjacent towns

Coastal

October

Mombasa

Voi, Kilifi, Diani, Malindi, Mtwapa, Mombasa & Its adjacent towns

Nairobi Regions

November

Nairobi

Machakos, Thika, Limuru, Nairobi & Its adjacent towns

TO REGISTER

Embu, Nkubu, Chuka, Maua, Chogoria, Isiolo, Meru & Its Environs

Call us +254 735 350 690, 725 350 690, 0732 759 248 or email: events@insightretails.com

3rd

November 2015

Retail Owners, Directors, CEOs and Managers are encouraged to attend

Retailers Leadership

The dos for retail frontline personnel

RETAIL LEADERSHIP

F

rontline employees with decisionmaking authorization save management time and increase client satisfaction. Organizations providing work environments where staff can perform at their best attract and retain the best people. Positive employee relationships generate energy and raise productivity.

Save money, improve client satisfaction, and reduce expensive errors with the following seven tips: 1. Empower your frontline staff to solve client problems on the spot. Then support them. When frontline employees hesitate to make the independent decisions related to critical thinking, it’s because they have been reprimanded for doing so in the past. They have learned to wait for specific directions from their managers rather than functioning as autonomous professionals. This ingrained habit is difficult to break. The best way to change this habit is to build trust by giving your staff consistent support. Don’t let your chain of command become a ball and chain.

When you empower frontline employees, you save money, clients are more satisfied, and productivity increases 2. Building trust enables you to use your intellectual capital. When your staff trusts each other, they save time and money, because people who trust others can act quickly and decisively. How do you build trust? By respecting yourself and others,by being a role model, by courteous communication, and by sensitivity to the needs of others.

3. Build a positive work environment.

Organizations that provide environments where staff can perform at their best attract and retain the best people. Long-term strategies such as effective communication and staff-friendly cultures enable organizations to achieve the best results.

Building a positive culture takes multiple elements: respect, consistency, and integrity.

A positive culture is worth the effort because it promotes employee understanding of organizational values enabling them to make smart decisions for clients.

4. Insist that staff collaborate instead of compete. For instance, ask yourself the question “Is everyone aligned behind our

28

INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

sales strategy?” Everyone can accomplish more when departments work together. Good communication and collaboration save time and money, and increase productivity. For instance, a salesperson may sell a product or service, but if he expects to make repeat sales, the customer service person and the delivery person must also interact effectively with clients. No matter how good the sales person is, future sales will be lost if the customer service person is insensitive to the client’s needs or if the delivery person is rude. This kind of alignment is essential for any company because the faces of all of these people are the faces that reflect the whole company from a client perspective.

5. Brainstorm about the opportunities that lie beyond the challenges. Dedicate a portion of your staff meetings to list current challenges.

Then talk about ways to transform these challenges into opportunities. Perhaps you will be able to redefine your selling proposition to increase sales. For instance, look at both sides of client complaints. Ask yourself if the complaint reflects a client’s need for a new product or service that your company could offer

Organizations providing work environments where staff can perform at their best attract and retain the best people. Positive employee relationships generate energy and raise productivity.

6.

Communicate respectfully.

Poor communication wastes time, delays decisions, and damages morale, poor communication is also expensive. Even proven communication strategies are rendered ineffective when staff manage to find new ways to sabotage one another in negative cultures.

7. Solve the root causes of problem. If frontline employees have no power to solve the root causes of their problems, they end up creating temporary fixes day after day. This wastes huge amounts of time, costing their companies significant amounts of money and reducing quality for clients. Solving the root causes of problems may enable you to move from a product focus to a client focus, building your business in new strategic ways.

Core values such as respectful communication and integrity cost nothing. Smarter managers empower their staffs to assist people in working together with conceptual communication and leadership approaches that enable them to leverage scarce resources and to do more with less. More than helping to maximize client satisfaction, using these tips will address the bottom line for managers.

Retail trade association (Retrak) www.retrak.co.ke ceo@retrak.co.ke, +254 721362895

2ND EDITION

2014 Thursday, 4th December 2014 Sarova Panafric, Nairobi, Kenya 08.30hrs – 18.00hrs

FORUM THEME The Emerging Technological Trends, Global best practices and benchmark for Retail Industry

SPEAKERS:

It composes the Top CEO’s from the Industry who have run their institutions successful for the past decades.

WHO SHOULD ATTEND / DELEGATES

Any senior retail professionalsDirectors/Owners, Managers or Supervisors of any kind of retail outlet

WHY ATTEND:

The Retail Forum gives the opportunity to: • The Global benchmark of retail trends overview • Meet potential new product & service providers • Listen, as well as directly contributing, to industry trends by participating in the forum • Develop your personal network amongst industry peers Our unique annual event will ensure that the service provider meets the delegate/retailer in one-to-one forum where they can share industry best practice cum networking.

CALL US

+254 735 350 690, 725 350 690, 0732 759 248 OR EMAIL US:

events@insightretails.com

REGISTRATION: ONGOING

Entry by invitation only.

SPONSORS INCLUDE

...

EVENT ORGANIZERS

EVENT MEDIA PARTNERS

MAGAZINE

SUPPORTING ASSOCIATION

Outlook

Insight Retail East Africa

Retail Industry A in Uganda

young population, rising middleclass incomes and female labor force participation are driving Ugandan consumerism. 72 percent of Uganda’s population, surpassing the 35 million registered in 2013 is under 30 years of age. Still, Uganda has registered a large female working population further making this type of consumer very important.

Sales in Uganda’s retail sector are projected to grow by 50 percent by 2016. More rapid growth is expected for modern trade outlets given the preferences of urban consumers for more product diversity, higher quality standards, and a more pleasant shopping experience.

Supermarkets, shopping arcades and hypermarkets have proliferated in urban areas over the past five years providing ease of access to a wider consumer base. Almost all existing large retailers in the country have committed to further expansion; from Kampala, Entebbe, Mbale, Jinja, Masaka, Mbarara, Hoima, Fortportal, Gulu, Lira, Arua and Kabaale amongst others.

Over the next few years, these prominent trends will shape the growth of Uganda’s modern retail sector;

U

ganda’s retail sector is largely dominated by small traditional trade, although modern retail channels are expanding in response to growing consumer demand. Overall economic growth, an increase in disposable incomes, and a sizeable young population, are driving changes in consumption patterns.

With lower rental and operation costs, traditional retailers benefit by offering convenience, package-size flexibility and low prices despite facing persistent extreme regulation from municipal councils especially in Kampala city by the Kampala Capital City Authority enforcement officers.

According to the Uganda Retailers and Wholesalers Association (URWA) provisional report, traditional retailers accounted for 80 percent of sales (with modern retailers only taking 20 percent).

The modern retail scene - supermarkets, hypermarkets and mini-marts is dominated by local and multinational supermarket chains appealing to a growing number of urban consumers in not only Kampala’s central business district and suburbs but also towns such as Mukono, Jinja, Masaka, Mbarara and Mbale. The local supermarkets include Quality Supermarket, Capital Shoppers, Payless Supermarket and Super Supermarket while the multinationals are Uchumi, Nakumatt, Tuskys and Shoprite. URWA estimates that the modern retail market share has increased accounting for as much as 20 percent of grocery retail.

Consequently, many indigenous supermarkets have relocated from their original premises to other suburbs due competition from the multinationals.

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INSIGHT RETAIL | ISSUE 08 | OCTOBER - DECEMBER 2014

• A growing number of western-minded consumers, especially the large number of young consumers in urban areas

Sales in Uganda’s retail sector are projected to grow by 50 percent by 2016.

More rapid growth is expected for modern trade outlets given the preferences of urban consumers for more product diversity, higher quality standards, and a more pleasant shopping experience.

• A growing middle class • A high number of women in the workforce, with increased disposable incomes to purchase higher-value food products for their children and families • Wide range of products offered by large supermarkets, attracting even lower-income consumers • Increased consumer acceptance of processed and packaged products. Many products traditionally sold in bulk are now readily available pre-packaged • More concern about and willingness to pay for nutrition, quality, hygiene, and food safety • Brand loyalty despite some consumers’ low/ negative reception to new products, • Weekly shopping at modern retailers versus daily shopping at traditional markets.

Similarly, growth in the traditional food retail channel is a function of these realities for the Ugandan consumer; • Preference to shop daily for fresh food items • A low percentage of households own refrigerators and microwaves

GEOFFREY BULAYI Uganda Retailers and Wholesalers Association (URWA) www.ugrwa.org

• Tight living conditions/small kitchens with little room for storage • Traditional markets have cultural value • Upgrading traditional grocery retailers has been a government priority, mainly in the periurban and lower-income towns. These projects involve markets renovations and facility improvements to ensure better hygiene and food safety.

RETAIL STATISTICS 2014 TIER 01

(HAVING 15 BRANCHES AND ABOVE)

52 Branches 12 Counties 4 Countries

36 Branches 7 Counties 3 Countries

TIER 02

(HAVING BETWEEN 5-15 BRANCHES) Chandarana Supermarkets Saltes Supermarkets Cleanshelf Supermarkets Eastmatt Supermarkets Selfridges Supermarkets Ukwala Supermarkets Tumaini Supermarket Khethia Supermarkets Magunandu Supermarkets Mulley Supermarkets Mathai Supermarkets Budget Supermarkets

8 Branches 7 Branches 6 Branches 6 Branches 6 Branches 6 Branches 6 Branches 5 Branches 5 Branches 5 Branches 5 Branches 5 Branches

2 Counties 2 Counties 4 Counties 3 Counties 2 Counties 5 Counties 3 Counties 3 Counties 4 Counties 1 County 4 Counties 3 Counties

MORE STATS IN THE EAST AFRICA RETAILERS DIRECTORY & SUPPLIERS GUIDE FOR ADVERTISING AND DIRECTORY LISTING

CALL+254 725 350 690 / 735 350 690 retail@insightretails.com

56 Branches 14 Counties 2 Countries

30 Branches 13 Counties 1 Country

TIER 03

(HAVING BELOW 4 BRANCHES) Kassmatt Supermarkets Setlight Supermarkets Quick matt Supermarkets

4 Branches 4 Branches 4 Branches

2 Counties 3 Counties 3 Counties

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