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RETAIL WWW.DIYTRADENEWS.CO.ZA

OUTLOOK E

JANUARY

PECIA

L

S

YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT

AND INDUSTRIAL TRADE NEWS

2018

D ITIO N

Two

iconic

brands join forces CASH MANAGEMENT 12 WAREHOUSE MANAGEMENT 20 GET THE RIGHT INSURANCE 28

Insulation Tapes

Cable Ties

UNI-T Instruments

Heat Shrink Product

MaxTorque Torches

Lugs & Ferrules

Cable Glands

Website: www.three-d.co.za Email: sales@three-d.co.za

MaxTorque Tools

WE STOCK THE RIGHT PRODUCT FOR THOSE DIY PROJECTS

Terminals


S

CONTENTS

E

RETAILOUTLOOK YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT

PECIAL AND INDUSTRIAL TRADE NEWS

DITIO N

2018

ED'S NOTE

BUSINESS

6

32 Advice on running a successful business

Moving with the times

RETAIL OUTLOOK

OPINION

10 Business report

34 Plan your marketing strategy

SOFTWARE

SUCCESSFUL RETAIL

18

36 Decades of successful hardware

Get ERP sofware to manage your store

E-COMMERCE

PROUDLY SOUTH AFRICAN COMPANY

22 Keeping online customers happy

40 Local is Lasher

SOCIAL MEDIA

PRODUCTS

24 Social media for brick and mortar retailers

41

4 | RETAIL OUTLOOK JANUARY 2018

Products to stock in 2018


Master Lock is recognized around the world as the authentic, enduring name in padlocks and security products. Since our founding in 1921, we have worked hard to earn and maintain the trust of our customers by delivering on our promise of strength and quality and by continually setting new standards for lock design, application and performance. As the largest global manufacturer and marketer of padlocks, we continue to build our founder’s passion for innovation, quality and compelling value into our expanding lines of security solutions.

At Master Lock we believe the key to effective security is innovation. This is highlighted by our continual unveiling of fit for purpose product and the Excell range of products is a perfect example of this.

NOW AVAILABLE IN KEYED ALIKE PACKS

The Master lock Excell range of products is fast becoming a favourite in the security industry and incorporates the use of patented “Hexagonal” shackles which are made from Boron Carbide, making them twice as resistant to attacks from Bolt cutters and pry bars, tools commonly used in theft attempts. The latest addition to this High Security range of product is the Excell Discus Combination padlock, which offers

a variation of the standard design features of other Excell padlocks. The hexagonal Boron Carbide shackle is standard, but now you have the choice of the world’s first Combination Dial Discus Padlock. The code is resettable and there are 10,000 possible permutations. You don’t even have to worry about forgetting the code because these can be stored on Master Lock “Vault” for future reference. Get your stocks today and don’t miss out on this unique profit opportunity. Contact your preferred Master Lock Wholesaler, today.

Tel: (021)

508-1250

Widest Range of Mobile Security Padlocks

Bike

Cargo

Storage

Cable / Chain

Safes / Chests

500+ SKUs

100+ SKUs

100+ SKUs

20+ SKUs

60+ SKUs

100+ SKUs


RETAILOUTLOOK

2018

YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT

THE TEAM EDITORIAL EDITOR Johann Stadler Tel: 011-877-6178 Email: johann.stadler@newmediapub.co.za SUB-EDITOR Gill Abrahams

S

LAYOUT & DESIGN Nazreen Bhyat Email: nazreen.bhyat@newmediapub.co.za

E

PECIAL AND INDUSTRIAL TRADE NEWS

EDITORIAL INTERN Kabelo Madimabe Email: kabelo.madimabe@newmediapub.co.za

Moving

ADVERTISING ADVERTISING EXECUTIVES Natalie Sanders Tel: 082-450-2317 Email: natalies@intekom.co.za

with the

times

DITIO N

EDITORIAL CONTRIBUTORS Rebecca Smith, Santam and Adéle Maritz

PHOTOGRAPHS

MOST OF US are looking forward to 2018. It’s a

attitude to stay relevant and performing optimally.

brand new year and a completely new adventure. My

Targeted marketing can now be done in your immediate

resolution for the year ahead is to think differently.

vicinity, in a province and even internationally (p24). Virtual shopping through e-commerce is technically

Times are changing and beating the same drum year after year is not a good idea. You’ll only fall off the

keeping your store’s door open 24/7. We elaborate more

business bus and be left behind.

about that on p22. Insurance is another headache that can make or

I think back five years and realise how much data costs and speed restricted us socially and especially in

break a business (p28).

business. Fast forward just a few years and both these problems have been addressed aggressively. Facebook

Read about this and other business related articles in this year’s Retail Outlook (p10). In the Outlook, we report on Lasher Tools (p40), a

had 2.07 billion users in November 2017. Five years ago Twitter had 160 million users – it recently registered

proudly South African company who has been able

330 million users. These numbers are not necessarily

to stay relevant in the retail arena for 113 years.

because of more interest, but accessibility.

Another proudly South African company, Q20, a

Devices are more affordable, internet availability is reaching further, speeds faster and data costs are lower. The direct impact of technology in our daily lives is

subsidiary of Triton Gloria Investments, announced its acquisition by CRC Industries Europe BVBA, a subsidiary of CRC Industries Inc.

incredible. Today, your fridge can order fresh produce on

Dear business owner or

your behalf and tell you when a product has expired. You

manager. We wish you

can now set alarms, air conditioning, lights – even unlock

the best of luck for the

your home, locks and gates from remote locations.

year ahead and that

Technology is impacting the way we conduct

remember – ‘may the

meetings with business partners via Skype.

odds be forever in

Information technology allows us to place a stock

Felicity Garbers Email: felicity.garbers@newmediapub.co.za UPDATE YOUR DETAILS HERE Web: www.diytradenews.co.za

PUBLISHING TEAM GENERAL MANAGER Dev Naidoo PUBLISHING MANAGER Johann Gerber Email: johann.gerber@newmediapub.co.za PRODUCTION MANAGER Angela Silver ART DIRECTOR David Kyslinger Johannesburg Office: New Media Publishing, Ground floor, Media Park, 69 Kingsway Avenue, Auckland Park 2092 Postal Address: PO Box 784698, Sandton, Johannesburg 2146 Tel: +27 (0)11 877-6111 Fax: +27 (0)11 713-9024

MANAGING DIRECTOR Aileen Lamb CHIEF EXECUTIVE OFFICER Bridget McCarney EXECUTIVE DIRECTOR John Psillos NON EXECUTIVE DIRECTOR Irna van Zyl

order and follow every step from packing to it landing Happy trading!

world that is not directly or indirectly controlled by information technology. It is for this reason that it is

DISTRIBUTION & SUBSCRIPTIONS

Published on behalf of Media24 by New Media Publishing (Pty) Ltd.

your favour’.

on your shelf. There is not a single part of the modern

SOURCES Shutterstock, supplied images, editorial staff

PRINTING Printed and Bound by Novus Print Solutions

it will be a year to

business too. For example, you can have international

Unless previously agreed in writing, DIY and Industrial Trade News owns all rights to all contributions, whether image or text.

important in this day and age to look into ERP software and if you already have a system, to see how you can

Head Office: New Media House, 19 Bree Street, Cape Town, 8001 Postal Address: PO Box 440, Green Point, Cape Town, 8051 Tel: +27 (0)21 417-1111 Fax: +27 (0) 417-1112 Email: newmedia@newmediapub.co.za

make it user friendly and more integrated to help you manage more of your business (p18). By understanding and utilising technology, you are saving time, money, resources and effectively growing your business. It is not about working harder, but working smarter.   Who knows where we will be in another five years when it comes to information technology? No one does, but I am sure I would have revisited and revised my opinion on this topic a few times before then. Businesses need to adapt a forward thinking

Follow DIY and Industrial Trade News on: 6 | RETAIL OUTLOOK JANUARY 2018

@DIYTradeNews

DIY Trade News

www.diytradenews.co.za

While precautions have been taken to ensure the accuracy of its contents and information given to readers, neither the editor, publisher, or its agents can accept responsibility for damages or injury which may arise therefrom. All rights reserved. © DIY Trade News. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, photocopying, electronic, mechanical or otherwise without the prior written permission of the copyright owners.


INTRODUCING DULUX

COLOUR OF THE YEAR 2018

PICTURED ROCKS ALSO KNOWN AS NORDIC SAILS 2

Colour of the Year 2018 Pictured Rocks Nordic Sails 2

Manor House

Wet Granite

Steel Symphony 2

Blush Noisette 5

Transform your home with Dulux Colour of the Year Pictured Rocks. This sophisticated warm yet versatile colour is also available in Luxurious Silk. From South Africa’s icon and most loved paint brand. * The new Dulux Colour FuturesTM trends brochure is available in-store from October 2017. .

For product information or painting advice please contact Dulux Careline on 0860 330 111 or visit our website at www.dulux.co.za www.facebook.com/LetsColourSA

@DuluxSA

www.pinterest.com/duluxza

*Voted Icon Brand and Paint Category winner in the 2017/2018 Ask Afrika Icon Brands™ by TGI.

Colour reference is as accurate as the printing process allows. Please reference the Dulux colour charts for accurate representation of colours.

See how our trend colours for 2018 will look in your home with the Dulux Visualizer App.


RETAIL NEWS

Two iconic brands join forces CRC Industries Europe BVBA, a subsidiary of CRC Industries Inc., has announced its acquisition of Q20, a subsidiary of Triton Gloria Investments. CRC INDUSTRIES IS a global leader in the

& Development, production and distribution. The

company to increase the basket of products available

production of specialty chemicals for maintenance,

combined efforts of both companies provide the ideal

to customers and allows the business to increase its

repair and operational professionals and for do-it-

platform to further develop Q20 and CRC brands into

market awareness. “The biggest advantage is the

yourself enthusiasts within the automotive, heavy

the wider SADC countries.

access we now have to experience to help grow our

truck, marine, electrical, industrial, hardware and

“We’d like to take this opportunity to inform our

products even further,” he explained.

aviation market. Q20 boasts a wide range of products,

customers that it is business as usual and we have

including the famous Q20 multipurpose lubricant,

some exciting new developments coming in the New

Q20 will become the new Managing Director of CRC

Q10, Q Bike, Flight Hand Cleaner, and other DIY related

Year,” said Simon Smith, managing director, CRC

Industries RSA Proprietary Limited. Louis Munnick,

chemicals, manufactured and distributed from the

Industries RSA.

who has been with CRC Industries South Africa for six

company’s plant in Olifantsfontein, Johannesburg.

Simon Smith the current Managing Director of

“This acquisition puts Q products in a very strong

Through the acquisition of Q20, CRC reinforces its

years will remain with the company in the role of Sales

position to grow its complete range of products.

Director, and will be integral to the smooth integration

position in South Africa, particularly in the DIY market

We now have access to top formulas and we have

of the two organisations going forward. Roy Singh,

and incorporates its South-African Industrial Division

the unique opportunity to grow both Q20 and CRC

who has been with Q20 for 39 years, will remain as the

into one new company: CRC Industries RSA.

brands,” says Smith. The CRC brands operate in

financial director of CRC Industries RSA.

Alongside numerous synergies, both brands,

numerous fields including the industrial, food, military

Q20 and CRC, will benefit from the increased

and aviation industries.

knowledge and know-how in areas such as Research

The manufacturing, sales, customer service, distribution and administration offices will remain at

Smith continued that this move will allow the

the headquarters in Olifantsfontein.

Q Oil Europe is formed, manufacturing Q products in the UK. Q Products are manufactured from its 500m2 warehouse in Modderfontein with two aged production lines

2009

Saudi Arabia and the Middle East start importing Q products

Q products move to its new home in Olifantsfontein

Construction starts on Q20’s new facility

A 3rd aerosol line is installed

2010

2012

The first exports of Q products to Mauritius, Zimbabwe and the UK

2013

2014

Greece starts manufacturing Q products

Focus on local market and consolidation

2015

2016

Turkey starts its manufacturing of Q products

2017

Launch Evaporust

CRC Industries acquires Q Products

Flight Chemicals is acquired, given focus and growth opportunities locally Q products are marketed in 60 countries

CRC INDUSTRIES

marine, heavy truck, hardware, electrical,

CRC began in a Pennsylvania garage in

industrial and aviation markets. CRC serves

1958 as Corrosion Reaction Consultants

customers around the world with manufacturing

with a single product: CRC Corrosion Inhibitor,

and distribution throughout North, Central

a multi-purpose lubricant.

and South America, Europe, South Africa and

Today, CRC is a global supplier of chemical

Asia-Pacific marketing areas. CRC operates

specialty products, manufacturing over 1 300

26 facilities that produce more than 80 million

items and developing specialised formulas

cans of aerosol products each year.

to meet the unique needs of the automotive,

Source: www.crcindustries.com

MESSAGE FROM CRAIG MILNER For decades the Milner family owned

to the administrative staff and sales

Without them, manufacture and

enthusiasm, the Milner family is

and developed the iconic South African

team, and to my fellow directors who

sales would be impossible. They are

excited to see Q Products continue

brand, Q20 Multipurpose Lubricant.

have made my job as CEO/president

crucial to our brand’s success. This is

to dominate the market locally and

an absolute pleasure, I wish you all

a group of dynamic individuals that

make South Africa proud as a

behind the brand – some of whom

I must first acknowledge the people

the best going forward. You are a

shape the South African consumer’s

global player.

have been with the Milner family for

phenomenal force in this industry.

environment on a daily basis.

more than 30 years. From the factory employees who make the products, 8 | RETAIL OUTLOOK JANUARY 2018

I also acknowledge our clients – both our suppliers and our retailers.

Very humbly I thank you all.

Sincerely,

With CRC’s commitment, vision and

Craig Milner


RETAIL OUTLOOK

Business report

The local political and economic situation does impact business. We hear from leading market suppliers how business has treated them in the past and what to expect in 2018. Michael Berg, Den Braven SA, national sales and marketing manager says…

ABOUT DEN BRAVEN Den Braven is a supplier of high quality sealants and solutions. It provides advanced hybrid, polyurethane, silicone, acrylic, sealants, construction foams and fire protect sealants for the construction, industrial and DIY markets. Den Braven has offices in Johannesburg, Durban and Cape Town and also services the Sub-Saharan Africa regions.

How did 2017 treat you from a business point of view? We certainly noticed economic challenges.

What was your 2017 business highlight of the year? Den Braven products contributed to various successful construction and fenestration projects nationally and in Sub-Saharan Africa. In the DIY sector we supported our customers. They remained assured with our quality product offerings, service and advice. With regards to policies, social, economic and markets Den Braven is compliant and it supports various structures and organisations.

What made doing business easier in 2017? Specifiers, developers, contractors and DIY alike are becoming more aware of using the correct products for a durable successful finish. Better results through knowledge and doing it right the first time.

What made doing business difficult in 2017? Like most businesses, industrial actions and the resulting snowball effect can be a challenge.  

Was 2017 a better or worse year than 2016? Den Braven held its own. We do not compromise on our product qualities and services. As a team we remained focused and committed throughout the year and achieved accordingly.

What do you predict for your business/ industry in 2018? We think that the various challenges in South Africa will prevail for some time. However, we are proactive, optimistically positive and motivated. With our dedicated team we will remain focused and get business done. 10 | RETAIL OUTLOOK JANUARY 2018

Johannes van Rensburg, Eureka DIY Solutions, sales director says… ABOUT EUREKA DIY SOLUTIONS Eureka is one of southern Africa’s largest suppliers of pre-packed fasteners and fixers, security products and general DIY items. How did 2017 treat you from a business point of view? It was a tough year. It tested everyone.   What was your 2017 business highlight of the year? Our new concept with updated layouts started rolling out. It has been very well received. With regards to policies, social, economic and market, corruption has started taking its toll on the economy. GDP per capital is

declining, the poor is getting poorer and education is not coming right. What made doing business easier in 2017? Not much…   What made doing business difficult in 2017?  Consumer confidence took a knock. It seems as though building projects declined somewhat.   Was 2017 a better or worse year than 2016? Much the same, but only with higher costs.   What do you predict for your business/industry in 2018? Growth from the second quarter.

Duram Smart Paint, Francois Swart, sales director says…

There is no question that 2017 was a tougher year than 2016, but we are still showing great growth and actually find a tight market very conducive to consumers trying our decorative products and most importantly staying with them.

What made doing business easier in 2017? Our brand is growing every day and customers are getting used to our decorative products. Our customer retention is very high and it was great to see customers buying more of the products and also trying out any newly launched ranges, due to their positive experience on the brand.   What made doing business difficult in 2017?  The paint industry is going through an interesting time with lots of price cutting to try and stimulate sales growth. We have remained true to our strategy and the retailers can now see the continued sales growth and secondly margin growth by staying with the Duram brand, even in the face of prices on other brands being cut.  

What was your 2017 business highlight of the year?

Was 2017 a better or worse year than 2016?

The highlight for us certainly was not only holding on to our market share gains over the last couple of years, but actually accelerating further into the decorative space. Another highlight was our customers awarding us with their supplier of the year awards: We were awarded the Build It Supplier of the year in the house brand category and also won the DIY and Industrial Trade News’ paint supplier of the year award We also managed to be awarded DIY Trade News’ silver medal for Hardware supplier of the year. The biggest highlight was the feedback from our customers on how much they enjoyed our new ranges and how they are seeing the positive impact on their bottom line. With regards to policies, social, economic and markets, our political environment continues to be a cause of concern. Our focus is certainly going to remain on staying as cost effective as possible during these tough economic times and to ensure we continue to be price competitive.

We had another great year and we are delighted with the way the brand is growing and that we are still managing to find decent growth in this tough economic environment. We are deeply grateful to our retailers for sticking with the brand and for staying on this journey with us.

ABOUT DURAM SMART PAINT Duram was founded in 1981 and started off as a specialist waterproofing and metal care coatings company. The company soon realised an opportunity in the full decorative space and have since developed its offering into a full range of decorative and protective coatings. All products are exclusively sold through retail stores.

How did 2017 treat you from a business point of view?

What do you predict for your business/industry in 2018? I think there will be some consolidation of brands and ranges. Bottom line will be the key in 2018 and turnover growth will be dangerous to chase. I don’t think we are going to see massive growth next year and we are certainly talking to our retailers about strategies that focus around making more bottom line and not more sales for less margin. In these tough times you need to make sure you are profitable on what you sell and not always just trying to sell more and draw these illusive ‘non-profitable feet’ that discount strategists like to advocate.


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QUALITY TILING TOOLS, CUTTERS & DIAMOND BLADES

TILE CLEANERS, SEALANTS & STRIPPERS

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KWA-ZULU NATAL Tel: +27 (0)31 564 1175 Fax: +27 (0)88 031 564 1143 kznsales2@kirk.co.za

WESTERN CAPE Tel: +27 (0)21 949 2226 Fax: +27 (0)21 949 4531 capesales2@kirk.co.za

EASTERN CAPE Tel: +27 (0)860 54 75 73 Fax: +27 (0)86 688 4908 ecapesales@kirk.co.za

info@kirk.co.za • www.kirk.co.za


CASH MANAGEMENT Businesses are increasingly targeted by criminals. Here are a few tips to safeguard your business, you and your staff.

Manage your cash risk MANY INDUSTRY EXPERTS believe that

MODERN SECURITY

receiver to a transmitter. This creates a direct line

once criminals have gained access to your

Security can be broken down into three

between the units. When the beam is broken, a

premises, there is little that can be done if you

sections: perimeter security (walls/gates/

radio signal is sent to the control panel.

don’t have the right outside resources in place.

motion sensors), security for access points like

Ideally, we’d all like to keep criminals out, but

windows and doors (burglar guards/sensors)

ALARMS SYSTEMS

once they are in we need to get them out

and intruder detection and armed response

New systems operate wirelessly. This eliminates

quickly, without the loss of human life. Security

once criminals have gained access.

the need for unsightly wiring and sensors can

experts say that many South Africans are only

Technology in all categories has improved

alert after an incident. You need to look critically

dramatically in the past few years, especially in

security company headquarters can identify

at your security to make sure everything is in

the area of perimeter security and installed alarm

which zones have been activated. They may

place before criminals strike.

systems. Systems are integrated, streamlined and

also be linked to glass breakage detectors

easy to operate. In fact, simplicity is sought after.

which trigger the alarm when glass is broken.

AFTER LOCKUP

Wireless technology has taken the hassle out

be better placed. Monitoring dispatchers at the

Criminals also have more at their disposal

When we think of security we generally think

of putting in an alarm system. Sensors are easy

with technological improvements, which means

about the latest gadgets and gizmos, but even

to install and batteries provided are also more

that business owners need to think smartly.

some low-tech advice can go a long way in helping

powerful offering a much longer life span. Newer

Signals from wireless devices going through

to secure your property. Make sure that the

systems can operate through a wireless Internet

to the control panel can be jammed. Criminals

property is well lit at night by security lights. Be

system (wireless/ADSL), through cell phone

may also be able to ‘grab’ the frequency that

aware of what happens on your business

networks or a combination of both.

your wireless technology uses and mimic the

premises and know the contact details of

signal to the panel. Newer products must be

your security company, neigbourhood watch

MOTION DETECTORS

able to pick up these blocking devices and

and nearest police station. Consider what you

For perimeter security, motion detectors are

signal the user. Code hopping, where every

advertise as soft targets in your store. Criminals

essential. Passive infrared detectors or PIRs

transmission on the premises has a different

are opportunists. If you unwittingly show criminals

do not emit beams but measure infrared

code on a different frequency, which the

your patterns like where you keep keys for

temperature, while active infrared or AI sensors

control panel understands, has made

security gates, you will become a soft target.  

send out pulsed beams of infrared light from a

wireless more secure.

12 | RETAIL OUTLOOK JANUARY 2018


8 Product categories WooD

Rivets

Wall

Nails

Home

Bolts & Nuts

DRyWall

Roof

24 Stands

800 Different poducts

1 943 SKUs

The most COMPREHENSIVE fastener range in South Africa! www.eureka.co.za • 011 471 0800


CASH MANAGEMENT CCTV SYSTEMS 

• Test your alarm system on a regular basis and

With closed-circuit television (CCTV) cameras

ensure that your service is linked to a reputable

installed, you are also able to dial into the system

and reliable armed response company. Motion

and view the premises from anywhere in the

detection in the ceiling should be included more

world. This technology is now being used to

often than not, as burglars sometimes enter the

eliminate the high number of false alarms experienced by South African security companies.

store through the roof. • Remember that most attacks occur with some

form of insider participation. The more effective

DURING BUSINESS HOURS

the technology and procedure used to manage the

The retail industry, which accounts for 18%

cash, the greater the deterrent. Ultimately, it is far

of South Africa’s Gross Domestic Product,

better for criminals to become aware of the level of

is under fierce attack. The latest national crime

difficulty during the planning stage, as this will lead

statistics show a record 54 armed robbery attacks

to them moving on to softer, easier targets.

Richard Phillips Joint CEO Cash Connect Management Solutions

against businesses each day and nearly 20 000

trying to manage the risk associated with

business robberies for the last year.

The reality however is that many business

these practices is difficult and undesirable,

owners still make use of manual banking and

security professionals offer some guidelines

DIY cash counting methods. While

worth considering:

“Retailers would serve their interests well to review the security of their stores, and their cash management services in particular, to avoid falling victim to unexpected and violent attacks that can have dire consequences for the safety of staff and customers, as well as the reliability of trading during the high turnover season,” says Richard Phillips, joint CEO Cash Connect Management Solutions. While our retail sector is bracing itself for a continued upward spiral of business crime, here are a few guidelines for business owners to help lower their risk: • Make sure your cash vault or safe is robust and conforms to a level of categorisation that offers as much protection as possible against the use of plastic explosives. • The cash vault should be placed in a secure back room with strict access control and not where it is visible or accessible to customers. The latest trend with armed robberies is that criminals no longer just go for the cash in the tills or on the shop floor; they now head straight to the cash vaults. • CCTV cameras are an advantage in a retail environment, but the quality of the system is of utmost importance if it is to create deterrence and provide valuable evidence for police investigation and conviction. Regularly check on the quality of your CCTV footage and make sure that footage is backed up and records activity at entrances. • Ensure that your CCTV operating device is stored securely – this reduces the opportunity for damaging the device during a burglary or robbery and removing all evidence for later investigation. • The store can become vulnerable during the collection of cash, but the combination of the above suggested precautions go a long way to mitigating this risk. In many cases retailers even go as far as closing their stores for the brief (under 3 minutes) collection period. The impact on trading remains minimal, while the safety of staff and customers are treated with care and importance. 14 | RETAIL OUTLOOK JANUARY 2018


CASH MANAGEMENT

• Avoid paying wages in cash and make electronic transfers instead.    • The process of manually banking deposits should be kept as confidential as possible. • Alternate the days and times when you do your manual cash deposits at the bank and avoid openly displaying cash being deposited at an ATM or teller.  • Always avoid carrying money bags or briefcases when approaching an ATM or when standing in a bank queue. • Change your banking pattern by alternating between bank branches and/or ATMs so your banking routine is not easily recognisable.   Organised crime has a direct impact on our Retail industry and our economy. As socioeconomic factors continue to deteriorate, cashrelated crime will continue to increase. “It’s therefore vital that business owners educate themselves on how to reduce their risk of an armed robbery, dramatically improve efficiencies and reduce the cost of cash,” says Phillips. Pioneering the drive to create a secure and efficient retail trading environment, as well as introducing multiple and varied payment solutions, Cash Connect has been progressive in reducing business crime since 2006, improving efficiencies and reducing the overall cost of cash deposits.   Offering more than just a tin box to safeguard your hard-earned money, Cash Connect provides an all-inclusive, value guaranteed, robust automated cash management solution. 16 | RETAIL OUTLOOK JANUARY 2018

THE N10K CASH VAULT Cash Connect, has launched the N10K cash vault

management practices to deter criminals.

designed to provide top-of-line functionality for

These include:

retailers and wholesalers requiring to secure

• Prevent cash from becoming a target by

large volumes of cash through high-speed, bulk

regularly depositing takings into the cash

cash deposits. The N10K is the largest model in

deposit device and keeping cash at points-

Cash Connect’s cash vault range, designed to

of-sale to a minimum

withstand the most forceful attacks. Built to minimum SABS category 4

• Keep in mind that robbers carefully survey their targets before an attack. Therefore, be

standards and weighing 950kg, the N10K

on the lookout for suspicious vehicles and

provides a formidable deterrent. Its design

people lurking in the area

includes a keyless sliding door feature that

• Urge staff to spread the word that your cash

removes the old swing door that traditionally

is secured and not generally available. It

intruded on available retail space.

won’t take long for would be criminals to

Additional features such as biometric user identification, a diagrammatic, touchscreen

realise that your store is a hard target • Encourage your staff to report suspicious

interface and a fool-proof bag loading system

enquiries to you immediately. They should

promotes easy and intuitive user operation.

be particularly wary of anyone wanting to

A high-speed validator with a mixed

know about banking habits, CIT providers

denomination acceptance rate of up to 300 notes per minute makes depositing cash

or CIT collection times • Closing shop for a few minutes before and

quick and easy. The N10K also offers scalable

during cash-in-transit collections is a tried

capacity of up to 10 000 bank notes, with

and tested ‘best practice’. Alternatively

notes being conveniently deposited into a

isolate and close down the area during the

single, disposable bag.

collections and ensure that the room where

The N10K is supported by a cloud based, real

the cash exchange or handover is being

time, financial management and payments

made has access restrictions. ‘Out of sight

software network that facilitates supplier

is out of mind’ is a valuable adage.

payments and fast deposit settlement into

• Assist the cash-in-transit collection

multiple bank account destinations.

team by being prepared. This keeps the

But even an automated cash management

collection service time window short,

solution needs vigilance and intelligent

sharp and safe.


SOFTWARE

Get ERP software to manage your store Enterprise Resource Planning is essentially the management of all resources in real time to streamline all business processes. ‘ENTERPRISE RESOURCE PLANNING’ is a term that was coined in the 1960’s but the software that we know today really only developed in the 1990’s. Essentially the concept resolves around the requirement for real time information and the streamlining of business processes, particularly as enterprises grow. Initially when a business has seen some expansion it is run using disparate systems governing finance, HR, and stock control. This is ok in a small business but can very quickly become over-stretched and cumbersome as the business grows. THE SOFTWARE REVOLUTION The way that ERP software revolutionises business processes can be seen throughout the various departments in any given business. With the business management system software, each of the business units - from HR through procurement, finance to delivery - is integrated, providing distribution information as part of the core business model. This ensures accurate and real time information around stock, cost, scheduling; all the way through to the shipping

and lack of capacity. It will also highlight overspend

expectation or relocate stock to fulfil orders. Good

schedules in the route to market. For the

in any area of the business so that decisions to

communication with your customers and the end

majority of enterprises this streamlines

reallocate budget is more clear cut.

user is imperative to maintaining a positive brand image in these days of social marketing.

working practices on the floor as much as the information flow to management.

In summary, although there is a significant outlay

HOW MUCH WILL AN ERP SOLUTION COST YOUR BUSINESS?

involved in buying into the ERP software solution

applications there is a great deal of re-keying

Historically, the cost of implementing such business

for your growing business, the returns you will reap

required to provide reports on capacity, stock

software has been a barrier to

will ensure it is of significant value for the future

management and sales data, but with ERP

growth for some businesses. This barrier has

of the business. Management and employees can

these are all integrated into a system that talks

now lessened as the variety of options has

make better decisions faster and streamline your

to each business unit and the information can

grown. Modular provisions are ideal to tailor

efficiencies for an advantage in the marketplace.

be pulled into reports encompassing many

the software to you individual business

aspects of business.

model, but still provides clear automated core

With separate spreadsheets and standalone

The uses of this kind of streamlining process are plain to see for those at the top of the chain.

business operation processes. The bottom line for your business is your

Providing real-time information makes any

customers’ satisfaction, and ERP Software

inefficiencies glaringly obvious and makes dealing

will contribute to ensuring your customers

with these issues a more efficient and timely

continue to purchase from you. By making your

operation. Whether it is a distribution issue or

processes smoother, and fulfilment of orders

procurement, the information provided by the

more streamlined, any issue with distribution will

integrated systems will flag both under-utilisation

be highlighted in advance, giving you time to align

18 | RETAIL OUTLOOK JANUARY 2018

WITH THE BUSINESS MANAGEMENT SYSTEM SOFTWARE, EACH OF THE BUSINESS UNITS IS INTEGRATED, PROVIDING DISTRIBUTION INFORMATION AS PART OF THE CORE BUSINESS MODEL


WAREHOUSE MANAGEMENT

Principles of effective warehouse management If your business has a warehouse, then you’ll be aware of the importance of this facility as an essential part of the supply chain. A warehouse which is poorly managed means far more than just a weak link in the chain.

HELP YOUR BUSINESS ACHIEVE THE FIVE MAIN PRINCIPLES OF EFFECTIVE WAREHOUSE

KEEP OPTIMUM STOCK LEVELS

Accurate detailing of stock levels and the correct fulfilment of orders can only happen in a warehouse where both the storage and movement of stock is tightly controlled. K8 helps to model and manage the logical representation of the physical storage

POOR WAREHOUSE MANAGEMENT

facilities, such as racking, bins etc.

can ultimately affect sales and therefore profits, which becomes costly. There are many ways to

Holding excess stock is costly,

effectively manage a warehouse.

while not being able to fulfil orders

One, easy to use solution is the K8

fails to maximise profitability. The

warehouse management software

accurate and efficient receipt of

system from Kerridge Commercial

stock and returns into a facility

Systems that can help your business

enhances warehouse management

achieve the five main principles of

and K8 facilitates this. The ability to

effective warehouse management.

link into the platform’s function as

Tak bestuurder Hardeware groothandel

stock management software means that it is easier than ever before to

All transactions associated with the

optimise stock levels at all times.

warehouse have to be processed efficiently for the supply chain

PROCESS SALES ORDERS SPEEDILY

• ’n B.com graad, of soortgelyke kwalifikasie met Rekeningkunde as ’n vak sal hê • Aansienlike ondervinding in soortgelyke omgewing • Pro-aktief van natuur is en goed onder druk kan presteer • Goeie personeel verhoudinge en produktiwiteit kan handhaaf • Oor ’n redelike graad van rekenaar geletterdheid beskik. Vergoeding sal afhang van ondervinding, kwalifikasies en bevoegdheid.

to work well as a whole. This is another area the K8 warehouse management system can assist with, helping to process shipping,

’n Goed gevestigde Nationale Groothandelaar in Gereedskap en Algemene Hardeware benodig ’n bestuurder in hul tak in Meadowdale, Johannesburg.

Van die aansoeker word verwag dat hy :

PROCESS ASSOCIATED TRANSACTIONS EFFICIENTLY

receiving, put-aways, picking and pick face replenishments. LINK WAREHOUSE MANAGEMENT TO SALES ORDER PROCESSING The swift and accurate processing of sales orders doesn’t just happen at the point of sale, it starts way back in the warehouse, when sales orders are first lodged and filled in the storage facility. While K8 also acts as EPOS software, being able to enhance warehouse management further enables fast and accurate sales order processing. CONTROL THE MOVEMENT AND STORAGE OF MATERIALS

Given that warehouse management is a vital part of the supply chain, it is essential that it is linked to other operational areas such as sales order processing and logistics management in order to pick, pack and ship products out of the facility effectively and efficiently. If achieving all five of these

Belangstellendes moet hul CV stuur aan jobs@on-top.co.za 20 | RETAIL OUTLOOK JANUARY 2018

guiding principles of effective warehouse management seems a hard task, it isn’t with the advanced functionality of K8 from Kerridge Commercial Systems.


E-COMMERCE

Keeping online customers happy

A guide to building a successful e-commerce self service environment, for your trade supplies customers. WE ALL LIKE to feel more in control of our lives –

competitors, how could you enable this

flexibility. Let the customer interact with you online

especially when it comes to dealing with businesses,

customer journey?

in the same way they do in store, make the brand

either as a consumer or as a business buyer. If many

Capture all of the buyer’s history so you can

of your customers are SMEs, chances are they’ll be

completely tailor their experience, and make it all

ordering from you on the go. 40% of people start

available online. Not only do you get better results

can cope with the growth in customers and can help

and end a purchase on different devices, some of

from your marketing campaigns (as they are fed with a

link together all your interactions with them. Cloud

which will be mobile.

complete picture of the customer) your customers can

storge provides a flexible option for this, as it can

access past order history and re-order with one click.

scale with your business and remove the headache

89% of companies in the retail and trade supplies trade don’t feel their e-commerce platforms

Create bespoke pricing and promotional activity

experience seamless. Scale for growth – establish an infrastructure that

of infrastructure management.

are up to the job of delivering what the customer

tailored to their activity, as well as have a general

Connect finances and order transactions to speed

needs when it comes to being online.

catch-all pricing and promotion strategy for the rest.

up order to cash as you let customers access their

If you’re wanting to win business over your

Link your channels together for maximum customer

account and resolve their own queries.

ANY CUSTOMER, ANY DEVICE Making it easy for customers to buy. What are the key things you need to do in order to take advantage of those customers that not only shop via mobile, but also swap between devices? 94% of marketers say that customer experience is the number one priority, and 40% of retail and trade supplies customers start and end their purchases on different devices. The good news is that this doesn’t have to be an operational headache. Following the steps below will get you ahead of the competition and give you competitive strength. Comprehensive – but simple. Don’t view mobile 22 | RETAIL OUTLOOK JANUARY 2018

as a ‘lite’ version of your e-commerce, make sure your customers can access the same features and item information, as well as the order process, on mobile. Accessing their account information should be as comprehensive as the desktop experience, but the number of clicks should be reduced and screen layouts simplified. Remember. Your customers are always on the go, on site, in the car, running around from one place to the other. You can make their lives easier by making sure your system remembers what’s in their basket across multiple devices and sessions. You should also plan to promote products they

have purchased before to increase basket size and to add value to the customer. Real time availability. Providing that comprehensive picture means real time availability is crucial, your customers are making promises to their customers, and you don’t want to be the reason they let them down. It is essential to make sure you have what they need, when they need it. One touch payments. Your customers are likely to be in a hurry, providing access to one touch payments, such as PayPal, makes it easy and fast for them to place the order.


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SOCIAL MEDIA

By Rebecca Smith – www.starbright.co.za

My favourite social media related quote is a line from Erik Qualman, an American motivational speaker and author, “We don’t have a choice on whether we do social media, the question is how well we do it.”

for brick and mortar retailers

A DIGITAL PRESENCE is no longer a competitive

choice you may be asking ‘where do I start?’

advantage but a pre-requisite to making it in this

For brick and mortar retailers the best place to

a lot of customer service issues or those working

day and age.

start is Google My Business, although many argue

in media. Pinterest is mostly used by creative and

that this is no a social media platform, Google My

makers – so this can be very beneficial in the DIY

WHY YOUR BUSINESS NEEDS DIGITAL PRESENCE

Business will play a vital role in making your

industry, and Instagram only works if you have

That said it is important for businesses to understand

business searchable and then locatable.

visually appealing content. LinkedIn is best used

how to ‘do’ social media for their particular type of

Google My Business makes it easier for people to

Twitter is great for larger companies that deal with

for B2B marketing. Each platform has its cons and

business and industry. In the case of brick and mortar

find valuable information about your business on

should pros and considered carefully but for retailers

retailers many believe that it is not necessary to

Google search and Google Maps, including directions

Facebook is a no brainer.

have a strong digital presence and be on social media

to your company, trading hours, ratings and pictures

if their offerings are purely offline. Others believe

of inside and outside the store.

that simply creating a profile on every social media platform will do the trick. Neither are true.

To claim your business on Google My Business

This year Facebook announced that it has reached over two billion users. With this reach potential and Facebook’s superior advertising capabilities you can

simply visit www.google.co.za/business/ and follow

be sure that your business will be in good hands here.

the instructions on screen. Do not be alarmed when

With Facebook as your focus point pick one or two

that a large number of your customers will have

they tell you to wait for a postcard with a verification

other, supporting platforms and create a social media

their smart phone in hand. Many of them would have

code – this is how Google verifies your location. Hang

strategy around those platforms.

done online research, read reviews on your products

in there it will arrive.

If you look around your store I can guarantee you

and customer service, and compared pricing before stepping into the store. We live in a world where time is limited and instant gratification is king. People are reluctant to drive to

If you already have a Google My Business listing

KEEPING THE BOAT AFLOAT

check that all of your information is up to date. You do

Once you have set up your social media profiles you

not want to lose foot traffic because Google Maps is

may find yourself at a loss of what to do next. Many

telling people your business is closed.

start off strong and then fade out as everyday life

a store ‘blind’ and would rather drive further to go

gets in the way. It is important to keep your social

to a store that they know provides good service and

WHAT PLATFORMS TO USE

media activity consistent. When clients see that you

has stock of the product they are looking for. The

The saying ‘Jack of all trades and master of none’

haven’t posted to Facebook in months they can get

days of phoning a store to inquire about pricing and

can be applied to choosing social media platforms for

weary and wonder if the business is still running.

trading hours are over. If I can’t find the information I

your business. Many believe that they have to be on

am looking for online I will simply find a store that can

every possible platforms, but running a business’s

who can ensure that posting is done professionally,

provide such information.

social media is time consuming and most of these

creatively, and regularly. You can either hire a

It is best to assign the responsibility to someone

platforms are often neglected. It is better to pick out

marketing agency to handle this for you or assign the

WHERE TO START

two to three platforms and manage them well. But

task to a staff member who is properly trained in the

Now that you understand why social media is not a

which do you choose?

company policies and social media best practices.

24 | RETAIL OUTLOOK JANUARY 2018


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INSURANCE Source www.santam.co.za

Insurance is essential to protect your business assets and finances, but many business owners view it as a complicated and expensive responsibility.

Get the right insurance for your small business

CHECKLIST FOR COVER THE GOOD NEWS is that you can insure your

African businesses. Business owners often fall into

business cost-efficiently and without difficulty.

a trap of underinsurance because they are unaware

But you need to choose the right insurer and cover

of the repercussions. If your equipment is worth

that suits your pocket and business needs.

R500 000 and you only insure it for R400 000, only 80% of your loss will be paid out when you claim.

CHOOSE WISELY

The last thing you need is to have to outlay additional

You must be able to rely on your insurer to pay your

funds following a loss during soft economic times,

claim, assist you in the claims process and give you

so it is critical to ensure that the value of your

good business insurance advice. To build a sustainable

possessions is updated regularly,” says Shehnaz.

business you need the best advice you can get. Never

“We understand that commercial businesses are

assume that the cheapest premium offered is your

under enormous pressure to produce results even

best option. It may cost you dearly in the end as

in times of reduced income, and this is where the

the cover could be quite restricted. Always compare

value of an intermediary comes in. We support

the cover, exclusions, excess and all the terms and

our network of intermediaries with unique client

conditions before deciding on an insurance provider.

risk profiling techniques, ongoing training, and an unmatched geographical presence and advice;

UNDERINSURANCE IS A CHALLENGE FOR THE

it makes complete sense to use professionals to

SOUTH AFRICAN BUSINESS SECTOR

help mitigate commercial risks.”

The South African commercial sector is traditionally

Santam also shares its legislative, commercial and

underinsured, and it gets worse during hard

scientific risk modeling expertise and insights with

economic times.

its intermediaries to help them better manage the

“Commercial insurance continues to come under

potential risks and advise clients appropriately.

pressure due the slow recovery of the economy

“A good intermediary will guide commercial

as well as the fact that commercial clients remain

clients, by helping them manage and prepare for

cautious when purchasing new items such as

changes to the environments that affect their

vehicles, plant and machinery,” says Shehnaz Somers,

business and ultimately, help manage risks to

Santam’s head of commercial underwriting.

ensure their business’ sustainability.”

“Underinsurance is a key challenge for South 28 | RETAIL OUTLOOK JANUARY 2018

“The insurance industry is complex. Commercial

Most important cover to consider: Liability insurance: This is a must. Every business, no matter how small and even home-based, needs it.  It protects you if you, your employees or your products or services cause or are alleged to have caused injury or damage to a third party. Property insurance:  If you own your building or just the office equipment, your policy should protect against perils such as fire and floods as well as other risks such as theft and vandalism. Remember that the building and its contents should be insured for its replacement value. That is, how much it will cost you to replace the building or equipment with similar, new structures or items. Commercial vehicle insurance: You can insure your business vehicles against damage, theft, hijacking and collisions. Vehicles should be insured at market replacement value. If you’re wondering what your business vehicles are worth, Santam has put together a car calculator to help you work out the reasonable market value of your car and it is available on its website. Business interruption/loss of revenue insurance: You may want to consider this to protect your revenue if the business is unable to operate. 


INSURANCE Source www.santam.co.za

AVOID INSURANCE PITFALLS For business clients, an

The financial gross profit often

underinsurance shortfall can be

takes account of various direct

disastrous. When clients experience

manufacturing costs, for example,

business interruption they often find

wages, factory overheads, water

their cover falling short, which may

and lights etc. The Insurance gross

mean they are unable to continue

profit, however, takes account of the

trading and they could be forced

uninsured costs as chosen by the

to close their business. According

client. These uninsured costs would

to Karin Lombard, manager in

be indicated on the policy schedule,

the Santam Complex Claims Unit,

and as standard would include

underinsurance is the biggest reason

“purchases; bad debts; and

for unhappiness at claims stage.

discounts received and allowed”. By calculating the insurance gross

businesses and their management

best suited to mitigate the risks

don’t necessarily have the time

that are specific to your business

or expertise to navigate the wide

and your industry, and they are in

spectrum of insurance products

tune with an evolving risk climate.

available, and this is why the

All of this, put together, saves time,

intermediary is so important.

money, and effort and, in many

He or she knows your business,

cases, ensures the continued success

knows what insurance products are

of the business.”

WATCH OUT FOR THESE THREE

profit based on only the uninsured

COMMON PITFALLS:

costs, the rate of gross profit

1 Calculating gross profit correctly

would be higher, enabling the

The most common errors that are

client to pay the on-going expenses

made when insuring for business

such as wages, factory overheads,

interruption occur when the gross

water and lights.

profit of a business is miscalculated. The client is insured against applying

3 Ensuring that an adequate

the rate of gross profit to the

indemnity period is chosen

reduction of turnover, not against the

The indemnity period chosen needs

total reduction in turnover.

to be sufficient to allow for the building re-instatement, sourcing/

Branch Manager A well established national hardware wholesaler requires an operationally minded manager at its branch in Meadowdale, Johannesburg.

Requirements • B.Com degree of similar qualification with Accounting as a subject • Substantial managerial experience in a similar environment  • Be pro-active by nature and the ability to perform well under pressure • Have good staff relations to maintain a productive working environment  • Have a decent level of computer literacy.

Remuneration will depend on the candidates work experience, qualifications and abilities.

Please submit your CV to jobs@on-top.co.za 30 | RETAIL OUTLOOK JANUARY 2018

The gross profit sum insured should:

ordering and commissioning of a

• Include VAT

new plant, equipment, machinery

• Reflect a 12-month period where

etc. as well as returning to the

the maximum indemnity period

pre-loss production and turnover

is 12 months or less; or the

levels – in other words, the recovery

appropriate multiple of the annual

period. The length of the period

turnover where the maximum

would need to be sufficient to

indemnity period exceeds 12

cover from the date of the incident

months

until the business is no longer

• Cater for trend, taking cognisance of a loss that may occur close to or at the end of the insurance period.

affected by the disruption. It is important for intermediaries to fully understand the nature of a client’s business. You may have

2 Understanding the difference

to call upon your client’s auditors

between financial and insurance

or accountants to provide further

gross profit

insights and information.


BUSINESS IF YOU ARE THINKING OF STARTING YOUR OWN BUSINESS OR RECENTLY OPENED A START-UP, HERE ARE SOME OF OUR TOP TIPS FOR A SUCCESSFUL VENTURE

Advice on running a successful business

Running a small business in South Africa remains an exciting adventure. A recent study found that small business is actually big business for our country. IT IS ESTIMATED that start-ups contribute between

Enter a small business award. Even just being

52% and 61% to the countries GDP. The same study

a finalist is something to mention – for example,

found that small businesses are also relatively

Entrepreneur of the Year, 702’s Small Business Awards

entrepreneurs. Keep an eye out for free events

successful, of the 400 business owners surveyed,

and The South African Small Business Awards.

such as MyBizExpo where you can hear inspiring

three out of four believe they are making more money than they would have working for someone else.

even if it’s a weekly or monthly phone call. You could also hang out with like-minded

talks and attend networking sessions. DON’T OVER-CAPITALISE ON EQUIPMENT Think carefully about each purchase you make for

STAY FOCUSED

or recently opened a start-up, here are some of our

your business. Take advice from Bos Ice Tea founder,

Time is a precious commodity for a small

top tips for a successful venture.

Grant Rushmere, “Don’t create anything that has

business owner so you have to be clever in how

only one use. Before you spend any money, ask the

you spend it. Get an overview of all your projects with

SPREADING THE WORD

question, ‘Can we use this in multiple places? Create

an easy-to-use project management tool such as

Marketing your new business can be time

assets that aren’t wasteful by being disciplined and

Trello or Basecamp.

consuming and expensive but if you work smartly,

putting thought into every spending decision.”

If you are thinking of starting your own business

you can get great results. Here are some cost effective

Block out an hour when you need to – no phone calls, no instant messaging, no checking emails –

CALL THE PROFESSIONALS

and put time aside in your diary to actively do

Something that is worth splurging on is the

marketing, get some exercise, come up with new

a business listing on Google. It will ensure that your

right professional advisor, from a tax expert and

ideas, etc. Apps like Evernote and Wunderlist can help

complete business infomation appear when people

accountants to a knowledgeable insurance broker.

you keep track of all your tasks and ideas,

are searching online.

The former can help you work out your tax liabilities

while RescueTime will show you exactly how much

to help prevent a cash shortfall, and point out ways

time you spend on each activity and show you where

Use testimonials. Don’t be shy to ask for feedback for

to save money in your business. Small business

your time is being wasted.

a job well done and display these soundbites on your

insurance may feel like an optional extra but could

website, LinkedIn profile and email signature.

mean keeping your doors open should disaster strike.

Work the power of word of mouth. If it suits your

MAKE CONNECTIONS

Anat, went from a R600 food trailer to being the owner

business, start a customer referral programme by

A mentor truly helps you on your journey. Decide

of more than 25 franchises around the country. For

offering a free product or other discount for every

which former colleague, boss or client you’d like to

Anat, starting small, selling only the very best and

new customer that is introduced.

learn from and make time for regular advice sessions –

keeping things affordable paid off.

marketing ideas. ‘Google’ your business, in other words complete

KEEP BELIEVING IN YOURSELF Anat Apter, founder of Falafel and Schwarma franchise

32 | RETAIL OUTLOOK JANUARY 2018


OPINION

By Adēle Maritz – www.ambrand.co.za

Plan your marketing strategy It’s that time of year again and retailers are probably giving deep thought to targets and budgets. DO YOU GET to the ‘marketing’ line item and really

are potential new customers? Spend some time thinking

and customer events. The sooner you get in a habit

give thought to the amount you allocate? The old

how to reach them best: What do they read? Where do

of measuring traditional product and price advertising

adage is true, ‘You have to spend money to make

they spend time? What would interest them?

campaigns the easier it gets.

money.’ But how much and where should it be spent? Many businesses have failed because they did

What is your goal for the upcoming year, attracting

There are various different ways to measure your

new customers, getting current customers to increase

return on investment - that we will discuss in future

not properly budget for and plan marketing

sales or maybe re-positioning your business in the

columns – the easiest way however is just measuring

activities. Companies can grow to a certain point

minds of customers? It goes without saying that your

sales quantities during promotional periods to

via word of mouth, but then hit a threshold and

marketing and business strategy should align perfectly.

previous months.

stand the risk of stalling.

When starting to allocate money towards different

Another quick way of evaluating the different

channels keep in mind what has worked well in the

mediums you are using is to be vigilant about tracking

past and what are potential avenues to reaching new

how customers find you or heard about a promotion;

Old rules of thumb have it that the amount you

customers. The size of your budget will also influence

salesmen can ask customers and give input in what

spend on marketing each year should range

your plan. Bigger budgets will allow for mass reach

is working and what not. You could even include a

anywhere from 1% to 10% of sales, or even more

mediums such as radio and certain magazines to

question on your website enquiry form.

depending on the industry.

be included in your plan. Smaller budgets will

1 BUDGET

It is also important that if something you

probably rely more on local press, leaflets aimed

experimented with is not working as well as you

Factors to include when deciding on your budget include variables such as:

at a smaller local market.

thought it might; tweak it, until you find the recipe that

• How established is your business? (if not everybody in your catchment area has heard of you, you should probably be spending more)

I do in the value of huge marketing budgets. A well

the great advantage over bigger chains in that they

planned, directed, interesting and perfectly executed

are able to adjust and change on the fly.

promotion could be way more valuable than thousands

I live by the saying, ‘failing to plan is planning to fail.’ I

• What type of industry are you in? (retail businesses in a competitive environment usually spend more that business to business type companies)

being spent on, for example radio advertisements.

dare you - think outside of the box, budget and plan to

• Does your business operate on high or low profit margins?

budgets. Remember when a potential customer visits

• Does your product or service require high or low involvement when a purchasing decision is being made?

however ‘make the sale’ and ensure that the image

• How active is your competitors? • Will you be launching a new product or service in the coming months? • Do you just want to maintain your current position or grow market share? In uncertain times it’s easy to – and completely acceptable – cut back on spend and wait for things to stabilise. The reverse is also true that while competitors are hurting you could make a move and ramp up spend. Keep in mind that there are so many cheap, but highly effective web options available today that you do not have to ‘spend yourself into a hole’.

2 PLAN Once you have an amount you are comfortable with in mind, putting a marketing plan in place is of critical importance. A plan enables you to track the performance of your spend and helps you to stay on track during the course of the year and make adjustments where needed. The best starting point when putting together your annual marketing plan is to decide who it is that you want to target. Who are your current customers? Who 34 | RETAIL OUTLOOK JANUARY 2018

I believe stronger in the value of good content than

Make sure to allocate money towards keeping your website up to date and including social media in your plan. These are cost effective mediums for smaller your website, they’ve already found you! You must of your business and information you convey makes them take the next step. Remember to include related expenses in your budget such as potential research work, attending trade shows, functions, brochures and training.

3 MEASURE Your marketing plan defines how you connect with your customers. If you are doing it well you should be able to measure the success. Some marketing initiatives are difficult to measure immediately, such as brand awareness campaigns, sales collateral, sponsorships

works best for your business. Small businesses have

make this a year to remember!


COMPREHENSIVE RANGE. APPLICATION SPECIFIC SOLUTIONS. INNOVATION. Through our extensive range of products, Ruwag is able to supply tailor-made-range solutions, ensuring you always stock exactly what your customers require to get the job done well.

Precision Tools Original Ruwag Quality Guaranteed

tel: 0861RUWAGT, email: sales@ruwag.co.za, www.ruwag.co.za


SUCCESSFUL RETAIL

Decades of successful hardware

A highly successful hardware business Kwa-Mnqandi Mica, located in the heart of KwaZulu-Natal is jointly owned by George Bond and John Carter boasts a history that dates back many decades. NORMAN BOND – A long time resident of

pregnant with her son, Brad, when the store opened

solely for hardware, they took the plunge and

Nongoma has been a trader in this part of

but this did not deter her. She was in store packing

expanded the store from 1 000m2 under roof, to

KwaZulu-Natal for many years. In the 1970’s the

shelves up until she went into labour – even in hospital

3 500m2 under roof – and the yard was also made

government wanted all whites out of Nongoma

she was signing documents for the store.

larger. The store front was now on the main street,

and started buying all white owned stores. Norman

George Bond, Norman’s son, worked in the

something the hardware had never offered before.

had a good relationship with both the King (King

wholesale operation from its inception. In the mid

This road frontage provided much needed visibility to

Goodwill Zwelithini) and the leader of the Inkatha

80’s they made a decision to split the wholesale

lure in more business, which added to their continued

Freedom Party, Prince Mangosuthu Buthelezi and

and hardware into two separate stores. George

growth and success.

managed to get permission to continue trading.

took over the management of the hardware store

John Carter in the meantime was working on his family farm near Pongola, but decided to move to Nongoma in the mid 70’s and approached Norman

In early 2017, Norman passed away at the age of

and John remained with the wholesale division –

89 and was given a hero’s funeral from the Nongoma

now solely focused on food.

residents who held him in extremely high regard. The

George became a partner in the hardware

entire town came to a standstill with a donkey cart

with the view to open up a new wholesale and

business in the early 90’s. As the years went by

funeral procession travelling through the centre of

hardware business alongside Norman’s trading store.

it became evident that the hardware store was in

the town in his honour.

On a handshake the agreement was concluded and

demand but the margins in the wholesale section

With the death of Norman, John and George

in 1981 John started the wholesale and hardware

were very small, so they decided to do away with

became equal partners. The business joined the

business focusing mainly on food wholesale. Denise

the wholesale division.

Mica stable some 20 years ago as their customers

Carter – John’s wife – was eight and a half months

In 2011 with the added yard and store space available

were brand conscious and joining Mica gave them

36 | RETAIL OUTLOOK JANUARY 2018


Continuous

Turbo

Segmented

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SUCCESSFUL RETAIL extra credibility amongst their already loyal clients. Brad and Greg Carter both joined the business in 2004 and are now very actively running it with George (John has basically retired and has interests in other businesses). Having been in this part of the world for much of their lives both Carter sons speak fluent Zulu and can converse with their customers, hear their needs and ensure they deliver. There is always at least one of them on the shop floor at any time. The success of Kwa-Mnqandi Mica Build is evident from the Mica Head office awards that the store has been achieving in the past couple of years. In 2016 it won ‘the Mica Growth’ award for the region

clients. Brad cannot stop singing the praises

unprecedented move by the hardware store owners,

and in 2017 it won the ‘Mica Growth’ award again –

of their suppliers and their willingness to help out,

they took the initiative to award its suppliers for

plus it won an award for being one of the Top five

deliver at short notice and call regularly (despite

their support and loyalty. The total value of the gifts

throughput stores – and recognised with the most

Nongoma being off the beaten track). Brad recognises

handed out that night were valued at R70 000, the

prestigious, ‘Store of the Year’ award – the top

that the suppliers are key to their success and

main prize going to Powafix as ‘Supplier of the Year’,

award for any retailer in the group.

acknowledges their input.

for which they won prizes valued over R30 000.

Brad and Greg Carter attribute their success

With this help and the marketing hype around the

to thinking out of the box, running innovative

day the promotion was a phenomenal success – way

promotions and to the support they have received

exceeding even the most optimistic expectations. The

from their suppliers.

store was abuzz, long ques forming at all the checkout

In 2017 they have already run three promotions.

points, but everyone in good spirits with boerewors

The first being the ‘Hamba Kahle’ promo, which ran on

rolls being handed out along with gifts from

30 June, the late Norman Bond’s birthday. They ran

participating suppliers. The yard was a hive of activity

another promo early in October and then the biggest

with bakkies lined up for hundreds of metres waiting

ever on 20 November – this promotion was widely

to collect. It appeared as if every Nongoma citizen was

advertised with broadsheet flyers being distributed

at Kwa-Mnqandi Mica Build on the 20th.

far and wide. The Carters enlisted the help of their

THE SUCCESS OF KWA-MNQANDI MICA BUILD IS EVIDENT FROM THE MICA HEAD OFFICE AWARDS THAT THE STORE HAS BEEN ACHIEVING IN THE PAST COUPLE OF YEARS

That evening the Bond and Carter families

loyal suppliers and secured phenomenal deals for their

hosted the suppliers for a celebration dinner. In an

Powafix won supplier of the year.

Happy customer.

Mark Reeves from Mica and Mark Reeves from Marshal.

Awards ceremony.

A hero’s funeral for Norman Bond by Nongoma residents. 38 | RETAIL OUTLOOK JANUARY 2018

Supplier support is important.


PROUDLY SOUTH AFRICAN COMPANY

Local is Lasher! The hardware industry in South Africa has over the past few years been inundated with inexpensive imports from around the globe. This has the potential of destroying local business despite the value for money offering being nowhere near what some local suppliers are able to offer.

THERE ARE A number of reasons to support local manufacturers. Look out for this regular feature in DIY & Industrial Trade News with special focus on local manufacturers. One of the most prominent local South African manufacturers, Lasher Tools, a brand that is under constant attack from counterfeit products, blatant copying and cheap imitations.

BENEFITS TO RETAILERS WHO SUPPORT LASHER TOOLS ARE: 1 Strength/weakness of the Rand to other currencies – not even the most astute economist seems able to hedge against or predict rand volatility, which leaves importers at risk. Dealing locally using local currency with the current economic turbulence makes absolute financial sense.

2 Short lead times – proximity and control of the manufacturing process is easily managed.

3 Capacity – the Lasher Tools Manufacturing facilities offer unrivalled capacity.

4 Continuity of supply – Lasher boasts an average 98% first time stock in supply rate. This equates to no stock outs on the entire range affording the retailer complete peace of mind with regards to on time stock availability.

5 Smaller orders can be placed and fulfilled – more and more retailers are holding onto their cash and need the flexibility of being able to place small orders and not take the risk of large stockholding and cash outlays.

6 Engineering Development capabilities WHY SUPPORT LOCAL? Lasher tools have been in business for 113 years – a track record that not many South African companies can match. During this time it has never retrenched a single employee, which highlights the most important reasons to support local. It creates employment, something South Africa desperately needs. Lasher Tools boast a large manufacturing plant consisting of three, ISO 9000 SABS accredited factories situated in Wadeville, Germiston and Ladysmith and employ 650 staff.

– Lasher Tools is effectively an engineering development company which means that products can be and are custom made to top quality market specifications, thus making its products fit for purpose to work in the harshest conditions, hence the Lasher motto, ‘Tough reliable tools, guaranteed!’ New product development is ongoing translating to constant upgrades of products and producing many new product offerings.

7 Logistics – whether ordering bulk or break bulk directly from lasher or through the wellestablished wholesale network, Lasher Tools are able to offer a complete logistical solution.

8 Guarantees and Return policy – the Consumer Protection Act forces retailers to take returns and these are difficult to return to

40 | RETAIL OUTLOOK JANUARY 2018

international manufacturers by the container load. Lasher Tools support its brand and have confidence in the quality. Should there be a return this will be honoured and the retailer is covered.

9 Quality – Lasher Tools guarantees all its products against faulty manufacture and although this can happen from time to time, its return on faulty products runs on average at less than 0.75% per annum on total manufactured products.

10 Brand strength – is perhaps one of the most important reasons to support Lasher Tools. The brand is internationally recognised and is a market leader in many countries. Consumers demand quality brands and Lasher Tools rises to the challenge every time.

11 Support of other local manufacturers – Lasher Tools source all raw materials locally where possible, strengthening all aspects of the local economy. Where this is not possible, Lasher Tools employs a buy-out sourcing system that ensures that products are only bought from reputable suppliers who follow sustainable business practices.

12 Retailer product training and

merchandising support – lasher tools not only manufactures an unbeatable quality range, but it also follows its support through to the retail shop floor, assisting in the sell to consumers, thus giving the retailer complete peace of mind in stocking lasher products. Quality, continuity of stock, dedicated, passionate staff and brand loyalty will ensure ongoing customer support to the retailer. So next time you think of stocking your shelves or buying a fit for purpose, quality tool, think South African, think brands that are South African and think Lasher Tools.


PRODUCTS Agardo Urban PU Foam is a polyurethane PU FOAM

based insulation and construction

foam filler for industrial and building applications. It is specially developed for filling gaps between windows and door frames, loose tiles, boards, filling of joints between wallls, floors, ceilings and much more. Polyurethane adhesives and polyurethane sealants are finding increasing uses within the housing construction industry. The material offers good adhesion to numerous substrates, such as

CHECK IN AT HOME

The new Yale Home View IP Cameras offer peace of

concrete, wood, plastic, and glass

mind by allowing you to view inside your home from your

due to its elasticity and structural

Smartphone or Tablet in crystal clear HD720p quality.

properties. These features, along

Designed to suit modern lifestyles, the cameras, including

with continued technological

the Home View fixed and Pan Tilt and Zoom (PTZ) IP

improvement, have widened

cameras, connect wirelessly to an Internet connection, providing peace

the number of polyurethane

of mind for busy homeowners who want to check in on their property or

adhesive and polyurethane sealant

family at the touch of a button.

applications in residential projects.

DISTRIBUTOR: Yale Security (SA) CALL: 011-761-5000 | VISIT: www.yalelock.co.za

DISTRIBUTOR: Araf Industries CALL: 031-569-1961 | VISIT: www.araf.co.za

The versatile Dewalt DT7921B screwdriving and drilling set is an ideal gift. This 19 pieces set comprises of 2mm, 3mm, 4mm, 5mm, 6mm, 8mm Extreme 2 Metal Drill Bits, Ph 2x4, Ph2x50mm, Pz2x50mm, Slotted 5.5x50mm

SCREW AND DRILLING SET

screwdriver bits Marley’s Vynadeep range of

• Magnetic holder

half round gutters and round

• Magnetic drive guide

downpipes offers economical

• Supplied in tough case

installation, low maintenance requirements and proven performance, and can be easily connected to a water storage tank to provide your home with a reliable water supply. Backed by a 10-year guarantee, Marley Vynadeep products are manufactured using high quality materials that are heavy metal free, ensuring RAINWATER HARVESTING

long-term performance and environmental benefits.

DISTRIBUTOR: Marley Pipe Systems CALL: 011-739-8600 | VISIT: www.marleypipesystems.co.za

DISTRIBUTOR: Benray Tools CALL: 011-683-8350 | VISIT: www.benray.co.za JANUARY 2018 RETAIL OUTLOOK | 41


PRODUCTS Lawn Star presents another

fire proof massive air filter which

innovative and exciting product to the

keeps the ash dust from the motor

market. The latest product is the ash

and prevents it from returning to

vacuum, a1000 Watt lightweight

the room during the cleaning

vacuum cleaner that deals safely

process. Lawn Star has once again

with the dirty mess of cleaning wood-

made the job easier, safer and better

burning fireplaces, braais and fire pits.

for the environment.

No more shovelling ashes. Simply vacuum up the hot ashes in the 18l metal drum and dispose when full. This is the safest way of removing

NEW ASH VACUUM

ash debris. The most important part of this vac is the

TRITON STATION

specially designed

The Triton WorkCentre WX7 is a

simple surface level calibration

versatile woodworking station with a

result in a perfectly flat work

multitude of accessories for tackling

surface. Positioning wheels improve

any woodworking task. Built-in

manoeuvrability for small position

mains isolated switch connector for

adjustments. The Workcentre also

connecting power tools, with knee-

folds down compactly for

off stop button function. Includes

convenient transportation.

clamping table module with 40 x 20mm diameter holes for securing

Accessories available include:

workpieces.

Router Module, Side Support,

Easy-to-fit module inserts quickly

Rugged Transit Wheels, Protractor

tool desired by the operator.

Assembly, Rugged Transit Handle

Module levelling screws for DISTRIBUTOR: Lawn Star CALL: 0860-529-678 | VISIT: www.lawnstar.co.za

Outfeed Support, Rugged Transit Kit,

transform the workcentre into the

and Saw Table Module.

DISTRIBUTOR: Vermont Sales CALL: 011-314-7711 | VISIT: www.vermontsales.co.za

The Stanley 27” Roller Cabinet is perfect for any workshop. 4 DRAWER: SKU: STST74305-8 ROLLER CABINETS

7 DRAWER: SKU: STST74306-8

FEATURES AND BENEFITS • Lockable castors • Multiple drawer sizes for flexible storage options • Perforated side panels for vertical storage • PVC bumpers on corners

Timbalok 90° Truss Hangers are specifically designed to support truss-to-girder and girder-to- girder connections in prefabricated timber roof structures. Timbalok 90° Truss Hangers can also be used for truss or girder to

• Ball bearing slides for durable drawers and smooth operation

concrete or masonry connections as well as timber joist and rafter supports.

• Lockable drawers

Product Code: UH12

DISTRIBUTOR: Stanley Black and Decker CALL: 011-472-0454 | VISIT: www.stanleytools.co.za 42 | RETAIL OUTLOOK JANUARY 2018

TRUSS HANGERS

DISTRIBUTOR: Timbalok CALL: 011-397-4917 | VISIT: www.rooftruss.co.za


Our company started out way back in 1928 and we have a history in which every South African can take pride. Lasher Tools is the leading supplier of quality guaranteed hand tools for the DIY, gardening, agriculture, construction, industrial and mining industries in South Africa. We are immensely proud of being the only local manufacturer of hand tools in the country. We employ over 600 people, manufacture more than 1,200 stock tools and we stand behind every one of them

www.lasher.co.za

www.facebook.com/lashertoolssa


Bolts Nuts Washers

home & geNeral

rivets

our products are now

Wall aNchors & colour–categorised for easy shopping Wall Plugs and the range

roof

broader and better!

Wood

dryWall

www.eureka.co.za • 011 471 0800

Nails

DIY and Industrial Trade News Retail Outlook - January 2018  

Your definitive guide to the hardware retail environment

DIY and Industrial Trade News Retail Outlook - January 2018  

Your definitive guide to the hardware retail environment