SHOPPINGshoppingandretail.co.za/Magazines/2018/may/Shoppingmay...shopping & retail SA // May 2018 Page 1 editor's note contents May 2018 // Volume 6 - No.5 SA Retail sector under siege

May 2018 // Volume 6 - No. 5&SHOPPING

Southern Africa

shopping & retail SA // May 2018 Cover

Changing South Africa one youth at a time

Known as the professionals in unlocking retail potential, Ancora Group has a profound 360 degree retail and leasing capability - and an unusual mission

The story continues on page 4...

shopping & retail SA // May 2018 Page 1

editor's notecontents

May 2018 // Volume 6 - No.5

SA Retail sector under siege

Moves are afoot at the highest level to arrest and disable the scourge of cash heists across the country.

This emerged at a press conference in Johannesburg at the end of May which addressed the debilitating effect of cash-in-transit heists as well as cash crime in general. The new book by Annelise Burgess called “Heist!” was also launched at this platform.

Consensus is that, should cash crime be allowed to continue unchallenged and unabated at present levels, then there is no doubt that very soon it will begin have a greater and more profound direct negative impact on all aspects of the retail sector – fundamentally changing our daily lives and freedom of movement.

Presently shopping centres and cash points are high profiletargets, where heavily armed brazen criminals in gangs of up to 15 to 20 strong raid crowded centres heedless of life or damage to property.

One member of the panel correctly terms this a form of terrorism. “As

communities and business we have to become directly involved. These people are known to someone, somewhere and need to be flushed out – their photographs published as wanted criminals. Many of these individuals are actually known to the police,” he continued.

If we as a nation are to permanently eradicate this scourge and threat to our freedom - then the time is now for us all as individuals, communities, businesses and retailers alike to heighten our awareness and work closely with the authorities by reporting any suspicious behaviour and any known useful information

See page 12 for the full story

EditorJohn ThoméCell: 072 848 0299E: [email protected]

PublisherKen NortjeE: [email protected]

Advertising/SalesKyle BurgessTel: 011 726 3081 Cell: 081 402 5176E: [email protected]

Sales ManagerSophia NelE: [email protected]

Subscriptions and CirculationMarius NelTel: 011 726 3081E: [email protected]

ProductionJohan MalherbeAntoinette van Rensburg

Design and layoutAntoinette J.v RensburgC: 076 914 2887E: [email protected]

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News

Into Africa - Choppies ups the ante.......................................................................2Serco launches new innovative solutions for its cold-chain customers.....................3Ancora - changing South Africa one youth at a time.......................................4Nestlé to pay Starbucks $7.15bn in global coffee alliance......................................6The meaty side of Retail........................................................................................8

Retail

Keeping disruption top of mind in Retail..............................................................10

Secuity

SA Retail sector under siege.................................................................................12

Waste Management

Food for thought: How big is the Recycling Industry.............................................14

Brands

Kellogg tops profit estimates, makes west Africa investment................................16

Risk Management

Shopping centres need to buy into complaint fire-prevention strategies...............17

Property

Solar powers Redefine's sustainability efforts.......................................................19

Commercial Property Leasing - It's all about the Customer Experience.........................20

Page 2 shopping & retail SA // May 2018

News

Into Africa - Choppies ups the ante Choppies' expansion programme in Southern Africa and East Africa is in full swing

The Choppies Group has operations in Botswana, South Africa, Zimbabwe, Zambia, Kenya Tanzania and Mozambique

Choppies Enterprises Ltd is expanding its presence into new regions as it recently begun operations in Namibia.

The grocery retailer is also gaining

market share in South Africa. Namibia is

the eighth country in the Southern

African region where Choppies

expanding its operations.

Currently, the group has operations in

Botswana, South Africa, Zimbabwe,

Zambia, Kenya Tanzania and

Mozambique. Choppies Enterprises Ltd

is listed on both Botswana Stock

Exchange and the JSE.

During the six months to end December

the group opened 33 new stores, to

take its total to 235 stores in the

continent, the company said recently.

This number is compared to

31 December 2016.

It generates 40% of its revenue in

Botswana and it reports in Pula

currency. In the results, it reported a

22% increase in revenue to P5.8 billion (R7.15bn), while gross profit was up by 23% to P1.1bn.

“Despite the subdued economic environment in the country (Botswana), we maintained our market share and continued to improve our efficiencies,” the group said.

In South Africa, the group said significant improvement in the North West stores resulted in like-for-like revenue growth of 43%.

“This growth has brought us to profitability in this region and we expect this trend to continue in the second half of financial year 2018.

"Segmental revenue increased by

43% and earnings before interest, tax, depreciation and amortisation (EBITD) was up by 33.5% compared to the corresponding period,” the group said.

In South Africa it is taking on retail giants Shoprite and Pick & Pay, which have also been expanding their presence in the rest of Africa.

In KwaZulu-Natal Choppies acquired a further eight stores effective from November 1, 2017. “Increased benefits of scale and other efficiencies will improve further as we expand our footprint in this region.” The total retail space for the group increased by 17% to 340 973m².

Zimbabwe also recorded encouraging improvement, and the company said it

continues to perform better in that

region despite the depressed economic

conditions. “Revenue grew by 25%

and EBITDA by 12% as compared to

last year.

It said overall performance had

improved in the other regions, but it

had yet to achieve profitability.

“The opening of new stores and

distribution centres in other regions is in

accordance with strategies adopted by

the board. In the six-month period,

three stores were added in Zambia,” the

group said. The group did not declare a

dividend as it declares it once a year on

annual results.■

During the six months to end December Choppies opened 33 new stores, taking its total to 235 stores on the continentIn South Africa Choppies is taking on retail giants Shoprite and Pick n Pay


News

Serco launches new innovative solutions for its cold-chain customers

Specialist designer and manufacturer of insulated and dry freight truck bodies and trailers for the cold-chain

transport sector, recently launched a range of new innovative solutions for its customers.

Tempwall 60The Tempwall 60 is a temperature separation bulkhead, made with a reinforced closed cell insulating core, wrapped in a strong outer skin of PVC.

These panels have a thickness of 60 mm and an insulation value of 0,53W/m2.K which is the highest in this product segment. It is lightweight and easy to handle and can be used as a sliding partition or a bi-folding or triple folding load divider.

LoadlokSerco Loadlok range of cargo securing accessories for bakkies and light delivery vehicles is designed to serve the growing trend for home deliveries of parcels and mobile workshops.

Fittings include an aluminium rail with a variety of straps and attachments.

Isoclear fixed shiftDuring multiple drop offloading, it is often hard to maintain product temperature. The norm is to use a PVC fixed air-curtain, but this is prone to damage and cumbersome to use. The solution is the new Isoclear PVC curtain which has a three-piece side shift mechanism. The three panels can be moved to either side for access to the load and then simply closed to reduce temperature loss. The Isoclear solution keeps the cool air inside of the vehicle and avoids warm air from entering. This will not only save money, it is also eco-friendly.

Isoclear is made of high quality PVC transparent strips which can easily resist temperatures of -25. The PVC strips have a 50 mm overlap to reduce heat loss.

Cargo WebThe Cargo web is attached to the Loadlok rails for securing of uneven loads during transport.It is also suitable for improving security by dividing the load. The Cargo web is constructed from heavy duty webbing with an over centre buckle tensioning device which reduces lateral forces on the Loadlok rails.

Tempwall 60

Cargo Web


Cover Story

Ancora - changing South Africa one youth at a timeKnown as the professionals in unlocking retail potential, Ancora Group has a profound 360 degree retail and leasing capability - and an unusual mission

In our previous discussion with the CEO of Ancora Group, Marianka Victor, in June 2017 Shopping & Retail SA shared the erudite vision

of this retail specialist group and its mentor-driven internship programme.

Today we delve even deeper, learning more about the team, its passion to share knowledge and grow people - and we follow the development of the current interns and reflect on the success of the recently 'graduated' interns – coupling this to the continued exponential growth of the Group.

BackgroundThe Ancora Group, founded by Marianka Victor in 2016, offers its clients in the retail sector a full spectrum service. With the primary focus being on leasing, this 360 degree scope encompasses research and feasibility right through to centre design and collaboration with architects, partnerships with developers, tenant mix selection and placement of national tenants and brands.

The Group is active across the country, from Limpopo to the Western Cape, Gauteng to KwaZulu-Natal. Their team also offers detailed professional advice to potential franchisees and retailers, analysing viability, best location and related market factors. The staff of the Ancora Group comprises 12 people, all of whom are under the age of 40.

Feasibility is keyAncora’s key offering is a one month basic viability study of the development, in which Ancora examines preparation requirements and undertakes market research for a proposed retail development in order to arrive at an implementation strategy. At this point a Go/No-Go decision can be taken. “We

can then very quickly tell the property owner or landlord – as well as potential tenants – of the viability or otherwise of the project,” says Marianka.

“Test the market before you spend money”

“It's crucial to have a vision for the area,” she continues. “And I travel a lot to see potential retail properties at first-hand, as land only means something to a developer if it is paired with a scheme.”

Research undertaken on each project by Ancora is essential to enable informed decision-making. For example, timing for the project may be favourable for immediate commencement – or research may show that it may be preferred to put the development on hold for up to four or more years before implementation of the scheme.

Ancora will also recommend and collaborate closely with the architects, quantity surveyors and project managers appointed to the development through to project completion.

Ancora also runs a detailed feasibility study on the property in order to understand the yield required to develop a property in the current market. The team will look at various alternative income solutions which increases the bottom line for developers, such as media, fibre and solar. Having fostered strong relationships with national retailers, Ancora understands the rentals per tenant, per demographical area. The client will then have at its disposal all the knowledge required to make a realistic decision on whether the development will be feasible or not as

well as actually having tested the market with prospective tenants.

“Many little things make projects successful – right down to defining the shopping centre entrances and positioning of stores and restaurants. We bring in national and local tenants and focus on creating strong business opportunities,” explains Marianka.

On the operational side, Finlay Mall Leasing, a division of Ancora Group, manages all aspects of leasing, advising property owners and landlords which tenants are most suited to the region and the centre and how much space should be allocated to each.

As part of its integrated leasing services, Ancora provides expert and professional assistance to clients in facilitating the conclusion of lease agreements on behalf of its clients, including the negotiation of lease agreements with national tenants and the formulation of hybrid lease agreements. In addition, the company also manages acquisitions, including the sale of shopping centres and collaborates closely with a host of well-known national brands.

In addition, Ancora’s Retail Partners division has the depth and capability to negotiate favourable deals for tenants. One of Ancora's many inherent strengths is building close relationships with its tenants, taking them under its wing by providing ongoing and personal advice and guidance.

Importantly, this division works closely with the developer and tenant in creating a win-win scenario in the lease agreement. To achieve this the developer meets the tenants' returns, thus encouraging long term occupancy and minimising losses resulting from

tenant turnover. The result is deals which are mutually beneficial to both parties, a stable tenant base - and a successful centre.

Nurturing new talent into the retail industryIt is against this strength and background that Marianka operates her youth mentorship programme, in which Ancora selects graduates with a passion for retail and prepares them for a career in retail and leasing management.

“First and foremost is my passion to identify young, ambitious talent and nurture them into the real world of retail operations through our internship programme,” says Marianka. “This is achieved through experience in our business which offers the ideal platform, complete with our directors’ and managers’ hands-on mentorship.”

Marianka firmly believes that when young professionals learn to be successful and realise their potential at an early age they will continue to be successful in life. She is passionate about training up our youth! It's in her DNA.

Ancora – a leading SA award winning Group

In 2017 Finlay was nominated for the Standard Bank Top Woman Award and has been nominated again for the same award for 2018.

In 2016 Marianka Victor was announced as the Regional Winner – Gauteng of the SA Women in Property Awards:• Young achiever Award: This award highlights the outstanding achievement of a young female professional who has contributed to the organisation’s positive success and performance through innovative strategies and solutions. This is a woman to watch – who has shown great potential to lead, has a proven track record, excellent business acumen, strategic foresight, and will be recognised for her contribution to the economy and growing employment in their enterprise.

Umlazi Station is the busiest station in the greater Umlazi area with around 54 000 commuters passing through the station on a daily basis. The 50 000 m2 Umlazi Satation Mall is positioned in the third largest township in South Africa. Extensive research has shown a high demand for the specific retail needs this Mall provides. The sod turning

for this project took place on 1 June and construction has now commenced with completion due by late 2019

Exciting news as we broke ground on 1 June 2018 at Umlazi Station Mall


Each year, Ancora's core staff of five mentor and groom up to seven interns, each on a one-year internship, equipping them to go out into the retail environment with confidence to build their new careers.

This creates very exciting opportunities, not only for the interns, but for new and existing businesses in the retail sector. Once the interns have completed their intensive 12-month hands-on internship, they have the exposure, capability and expertise that way surpasses that of many other job-seekers.

“Our selection process all hinges on attitude, enthusiasm and ambition” explains Marianka. “We look for people who are hungry for success and have a keen drive with the goal of being ’the boss of the business’”.

“Many young professionals in the field are over-priced and sometimes do not meet their employer's expectations in terms of capability. And as there is a limited number of young people entering the market, we choose to groom them from scratch.”“One of our current interns has reached the stage where she is actually running three developments entirely on her own.”

The mentorship programme“Our aim throughout this internship programme is to ensure that each intern will be a success for the rest of his or her life. The business and life skills we instil in them are such that this will indeed be the case,” continues Marianka.

There are always at least three interns actively in progress at Ancora at any given time, receiving close guidance from the core team in the leasing, marketing and administration disciplines. The company is presently

canvassing for a fourth intern in its leasing division. Since the inception of this unique mentorship programme, no fewer than four series of interns have already “graduated” through the company.

As a working mother herself, Marianka has earned the respect of the captains of the retail sector, as well as of the staff surrounding her in this exemplary business. “We lead by example,” she says, “and we convey to all our interns that by following your dream you will also be a better parent, especially the moms. It may be hard to do with kids but it is certainly possible and most rewarding.”

“Our main objective is to provide our interns with the correct advice and skills to achieve success, and to this end we offer a platform to help our graduates into responsible positions within the industry.■

Cover Story

Ancora - changing South Africa one youth at a timeKnown as the professionals in unlocking retail potential, Ancora Group has a profound 360 degree retail and leasing capability - and an unusual mission

Lesego Kwatlhai – Marketing Intern

As an ambitious and goal-driven young lady who is passionate about marketing design, Lesego is a firm believer in the power of a strong concept with an unexpected execution – challenging herself to explore any given task. Lesego has graduated with a Diploma in Computer-Based Graphic Development in 2016 from Rosebank College, and is a wonderful and fresh new addition to the team.

Matimba Baloyi – Leasing Intern As a young professional who works independently, Matimba holds a BSc. Urban and Regional Planning degree from Wits University. He is passionate about new developments, having co-ordinated various projects as a Junior Town Planner and freelancing on property-related projects along the way. Matimba’s interests include career networking, and he loves indulging in his favourite sport and music in his spare time. His personal drive to see a project through to completion is what motivates him to look at creative solutions.

Ancora Group comprises the following three companies:

Finlay Mall Leasing: Managing all aspects of leasing of developments

Ancora Retail Partners: Tenant representation

Ancora Alternative Income: Focuses on generating additional and/or alternative income for property owners

Ancora Group offers developers and retailers comprehensive 360 degree retail solutions – from leasing off-plan developments and existing shopping centres to tenant representation, legal assistance, alternative income solutions and acquisitions. The Ancora team has gained vast experience in the local market, grounded by in-depth knowledge and insight into the retail development industry and the communities they work in. Whether you’re a local or global organisation, landlord, developer or tenant, you can be sure of expert solutions to all your retail property needs.

Following her appointment as Managing Director of Finlay Mall Leasing in 2016, Marianka Victor proceeded to acquire the company and subsequently established the Ancora Group.

For more information contact Ancora Group at:

✆ 087 057 0487✉ [email protected]

Marianka Victor, CEO of the Ancora Group, is passionate about training up our youth! It's in her DNA

Mall of the North West is located along the N14 between the Vryburg CBD and Kuruman. Established nationals and dual anchors will cement this development as a

one-stop destination, servicing all income groups. The centre opens in 2020

Early 2020 193 611 51 436 ±14 000 20 000m 2

825

Completion Date Households Populatio n Household Income GLA Parkin g

Mall of the North West


News

Nestle to pay Starbucks $7.15bn in global coffee alliance

Reuters reports that the Nestle /Starbucks deal for a business with $2 billion in sales reinforces Nestle’s position as the world’s

biggest coffee company as it tries to fortify its place atop a fast-changing market:

Swiss-based food giant Nestle will pay Starbucks $7.15 billion in cash for the rights to sell the US coffee chain’s products around the world, tying a premium brand to Nestle’s global distribution muscle.

The deal for a business with $2 billion in sales reinforces Nestle’s position as the world’s biggest coffee company tries to fortify its place atop a fast-changing market.

It is a bold stroke by new Nestle Chief Executive Mark Schneider, who has made coffee a strategic priority as he tries to convince uneasy shareholders, including activist Third Point, that he can boost the sprawling group’s performance.

Bernstein analyst Andrew Wood said that Nestle’s third-biggest acquisition would allow the Swiss company to expand the brand through its global distribution network.

Nestle shares rose 1.4% by mid-session, having fallen by more than 8% so far this year. Starbucks stock was indicated 2.8% higher.

Seattle-based Starbucks, the world’s biggest coffee chain, said it will use proceeds to speed share buybacks and the deal would add to earnings per share (EPS) by 2021 at the latest.

Nestle said it expects the deal to sell Starbucks bagged coffee and drinks adding to earnings by 2019. It will not

involve any of Starbucks’ cafes or ready-to-drink products.But it does let Nestle sell Starbucks coffee in individual pods - as it does now with Nespresso and Nescafe - and expand sales of Starbucks soluble coffee, a key market in Asia. Starbucks now sells single-serve coffee in Kuerig K-cup pods.

The Nestle name will not appear on Starbucks products. “We do not want the consumer to perceive that Starbucks is now part of a bigger family,” a Nestle source said.

Starbucks, strong mostly in the United States, will have the final say on expanding its product range.

“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle,” said Starbucks Chief Executive Kevin Johnson.

Nestle and Starbucks are joining forces in a highly fragmented consumer drinks category that has seen a string of deals lately.

JAB Holdings, the private investment firm of Europe’s billionaire Reimann family, has fuelled the consolidation wave with a series of deals including Douwe Egberts, Peet’s Coffee & Tea and Keurig Green Mountain, narrowing the gap with Nestle.

Richer brewCoffee is popular with younger customers who have grown up with Starbucks. A willingness to pay up for exotic beans and speciality drinks means companies can brew up richer profit margins than in mainstream packaged food.

Starbucks said it now expects to return approximately $20 billion in cash to

shareholders in share buybacks and dividends through fiscal year 2020.

It said the transaction was expected to add to earnings per share by the end of fiscal year 2021 or sooner, with no change to the company’s currently stated long-term financial targets.

Nestle said it expected the business to contribute positively to earnings per share and organic growth targets from 2019.

The company source said it would also pay market-linked royalties to Starbucks. It will not buy any industrial assets as part of the deal, but could step in to produce in markets where Starbucks is not present.

Nestle, which will take on about 500 Starbucks employees, said its ongoing share buyback program remained unchanged.

The agreement will strengthen Nestle’s position in the United States, where it is the No. 5 player with less than 5% of the market. Market leader Starbucks has a 14% share, according to Euromonitor International.

“In the US, Nescafe is seen as a downscale brand for older people, and the Nespresso system as a niche product. Starbucks is the quality, mass-market leader,” said Erik Gordon at the University of Michigan’s Ross School of Business.

“Nestle is far and away the largest hot drinks company globally, with more in sales than the next five largest hot drinks companies combined,” Matthew Barry, an analyst at Euromonitor, said when the tie-up was first mooted on Friday.

“However, Nestle’s leadership position is less secure than it once was.”

Coffee in focusOther big players are growing as well, including Italy’s Lavazza, which is now the world’s No 3.

Nestle CEO Schneider last year identified coffee as an area of investment.

It bought Texas-based Chameleon Cold-Brew in November and took a majority stake in Blue Bottle Coffee, a small up-scale café chain, in September 2017.

Starbucks, which in April reported a global drop in quarterly traffic to its established cafes, has been revamping its business amid competition in its key home market.

It sold its Tazo tea brand to Unilever for $384 million and closed under-performing Teavana retail stores.

Starbucks is rapidly expanding in China, which it expects to one day be its largest market. It also plans to open 1,000 up-scale Starbucks Reserve stores and a handful of Roastery coffee emporiums to take on high-end coffee rivals such as Intelligentsia Coffee & Tea and Blue Bottle

Starbucks has long farmed out the retail distribution of its packaged products to a company more specialised in that process, but the partnerships have not always been smooth.

Nestle, the world’s largest packaged food company, is also not shy when it comes to partnering with rivals through licensing deals or joint ventures, having reached arrangements with General Mills’ and Hershey, among others.■

Mark Schneider


The best butcheries both nationally and regionally were recently announced by senior members of the meat

production and retail industry. This is the thirteenth year that the Cleaver Awards, which are proudly supported by Freddy Hirsch, have taken place. Launched in 2005 to meet the needs of the consumer by raising standards amongst butcheries, these Awards have time and time again proven to do just that, with feedback from consumers showing that the majority perceive the Cleaver Awards to be a seal of approval, most importantly because a butchery cannot enter themselves, they have to be nominated by their customers. Nominations were open between October and December last year for consumers around the country to vote and nominate their best butchery. Over 30 000 public nominations were received via SMS or online. Of these, 105 finalists were individually and anonymously assessed against a 212 point checklist, with some of the National Winners scoring up to 99,8 %.

One of the guest speakers at the Awards ceremony was Rudi van der Westhuizen, Executive Director at The South African Meat Industry Company (SAMIC), a quality assurance company which was created by the Red Meat Industry of South Africa to ensure the quality and safety of meat.

SAMIC is responsible for conducting all the provincial audits on the top nominated butcheries.

Van der Westhuizen reflected on the history of the Cleaver Awards. One of the reasons for starting these Awards in 2005 was the industry’s concern over legislation and quality of meat products once they reached the consumer.

Legislation, including hygiene matters, were in place in the abattoirs and de-boning plants with really high measurable standards, but once the carcasses or meat cuts left the abattoir premises, they were no longer under the jurisdiction of the Meat Safety Act.

The Cleaver Awards were launched to improve the quality of the end product, especially with regards to hygiene, consumer quality assurance, service and value for money.

Butchery owners and retailers have been instrumental in taking up the challenge to guarantee their customers a better product measured against the 212 point check list used to assess nominated butcheries.

A trend which seems to be happening

more and more each year is that

franchise butcheries are winning

multiple awards, another way these

Cleaver Award winners are showing

their commitment to service excellence

for their customers.

Kings Meat Deli Castle Walk,

Erasmuskloof won a National Gold

Award and its Lynnwoodbridge branch

won a provincial Gold for Gauteng.

Similarly, Boma Vleismark Olympus from

Faerie Glen, Pretoria won a National

Gold Award with Boma Vleismark from

Moreleta Park taking home a Platinum

Provincial Award in Gauteng.

News

The meaty side of Retail South Africa’s top butcheries: Cleaver Award winners announced

Kings Meat Deli


Vleislapa Marshal street and Vleislapa Grobler street, both from Polokwane in Limpopo, once again walked away with a Platinum and Gold Provincial Award respectively.

A similar situation has taken place in Mpumalanga with Frank’s Meat Supply Retail City taking a Platinum Award and Frank’s Meat, Panorama Centre taking a Gold. In Durban, Bluff Meat Supply from the Bluff as once again awarded Platinum with its Pinetown store awarded Gold. Spar Meat Markets continue to perform remarkably year on year, with 2017 being no exception. An initiative of the South African Red Meat Industry Forum, these Awards acknowledge butcheries which meet consumer expectations on in-store hygiene, the supply of quality assured roller marked South African Beef, their level of competency in offeringthe best advice on meal preparations and perceived value for money.

Butchers were judged according to three categories namely; 1. Butcheries with four or more till points,2. Butcheries with three or fewer till points and, 3. Food market / Supermarket butcheries. ■

News

Scooping the national accolades in the three categories of the competition (butcheries with four or more till points, butcheries with up to three till points and food market/supermarket butcheries) were Impala Vleis, Brits (Platinum), Kings Meat Deli, Castle Walk, Erasmuskloof (Gold),

West End Vleismark, Kimberley (Platinum), Boma Vleismark, Faerie Glen (Gold), The Grove SuperSpar, Nelspruit (Platinum) and Karaglen SuperSpar, Edenvale (Gold) espectively. Pictured here with the awards for these top butcheries are, in the front, Marius Jordaan (Karaglen SuperSpar),

Rudi Oosthüyse (The Grove SuperSpar) and Walter Rossouw (Impala Vleis). At the back, Eloff du Toit (Kings Deli) José de Klerk (West End Vleismark) and Bertus teenkamp (Boma Vleismark). (Photograph by Yolanda van der Stoep)

Congratulations


McDonalds UK follows the lead shown by the chain's global counterparts in South Africa, Australia and the

Middle East and elsewhere in recent years

by "disrupting" their own markets to

survive, changing the look of its restaurants and introducing delivery services.

This is according to a recent report by Adam Parsons, Business Correspondent for Sky News.

CEO of McDonalds UK, Paul Pomroy, says it is vital that UK firms continue to innovate and "disrupt" their own markets to survive as Britain's retailers are facing "a perfect storm" that will see businesses squeezed and more corporate failures.

Pomroy went on to say he had made the "bold decision" to keep investing in restaurants and staff since Brexit, but said conditions were getting ever tougher.Describing a "perfect storm of challenges, Mr Pomroy said: "I am really concerned by the amount of inflation that companies are carrying at the moment.

"Food inflation is running at between 4% and 7% across retail, there's pressure on wage inflation, interest rate movements and now you are seeing businesses becoming less brave in their decision-making.

Paul Pomroy says firms are becoming 'less brave in their decision-making'

"They're not making the investment decisions they would normally make and that will affect their business.

"You're seeing that up and down the country - businesses who are failing, and others who are becoming really tight and squeezed."

Mr Pomroy said one of the most important challenges for British businesses was to keep innovating at a time of economic nervousness, but he believes companies that stand still run the risk of being overtaken by new, dynamic rivals.

"You will be able to spot those brands that have listened to their customers and disrupted their own markets," he said.

"For retailers, to be successful, you have got to keep changing and look to disrupt the market yourselves before you are disrupted.

"Other people will undercut you, or disrupt the market that you're in. So it's going to be a tough three or four months, and unfortunately there will be closures. We need to make sure we're doing the right things, and be bold in our decision making."

Mr Pomroy has overseen a transformation of restaurant design at McDonald's, with red and yellow plastic furniture replaced by stripped wood, touch-screen tablets and table service.

He has introduced a 'gourmet burger' range in an effort to widen the brand's appeal and has also started a delivery service.

He also took the decision to offer staff a choice between remaining on a zero-hours contract or switching to full-time jobs (the vast majority have remained on zero-hour deals).

Mr Pomroy has also had to deal with a small but high-profile strike that he maintains was to do with a very specific disciplinary issue rather than a reflection of wider working practices.

But at its heart, his job is about keeping a lot of customers happy.

"We serve 3.8 million customers a day, and 90% of the population come to us at least once a year," said Mr Pomroy.

"We work on lots of scenarios and, at the moment, there's a lot of change on the way. And businesses can only handle so much change."■

Retail

LOOKING FOR A LONG-TERMRELATIONSHIP?

Contact Tzarene Grobler,Cash Converters Southern AfricaSite Selection and Property ManagerCall 082 377 [email protected]

Finalist - Awards 2014, 2015 and 2016 Franchisor of the Year

We know how hard it is to find great tenants. Tenants who are committed enough to build a long-term relationship with their landlord. If you’ve got a space to rent between 250 and 400sqm, give us a call.

With a Cash Converters franchise, you get a tenant with a recession-proof business model and multiple revenue streams. Our business never goes out of fashion. We take a long-term view with our franchisees signing 10-year agreements. And because we deal in cash, we’re always ready with the rent at the end of the month

So if you’re a landlord looking for a great tenant, give us a call first. This could be the start of a long and satisfying relationship.

Keeping disruption top of mind in RetailMcDonalds - Global leader of disruptive marketing

McDelivery has been steadily introduced across the globe since 2004, although it has been available in

certain parts of the US from as early as 1993.

In South Africa McDonalds introduced the McDelivery service in 2014, and in 2017 in

collaboration with Auram Restaurant Company, launched the McDelivery mobile ordering app.

McDonald's Japan is adapting open kitchen concept in stores.

In Hong Kong McDonald's Next has opened - offering quinoa, touch screens and table service.

In Dubai McDonalds recently launched McDonalds Delivery.

McDonalds UK CEO Paul Pomroy

McDonalds Next opens - offering quinoa, touch screens and tabl-serveimage

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Security

Consensus is that should cash crime be allowed to continue unchallenged and unabated at present levels there is no

doubt that very soon it will begin have a greater and more profound direct negative impact on all aspects of the retail sector – fundamentally changing our daily lives and freedom of movement.

Presently shopping centres and cash points are high profile targets, where heavily armed brazen criminals, often in gangs of up to 15 to 20 strong, raid crowded shopping centres heedless of life or damage to property.

• Retailers & businesses have a 1 in 4 chance of armed robbery.• 72% of retailers have manual cash handling processes• Only 28% of retailers have some form of modern automated cash management system• Cash in Transit robberies have increased by 43%

There’s been six arrests in one week in what appears to be renewed resolve from the police, who have even apparently compiled an ‘interest list’ of more than 122 suspects. Is the net at last closing in on cash robberies?

Not good enough - said a panel of experts at a press briefing in May. “What’s needed are arrests and successful prosecutions of syndicates, based on intelligence-sourced information and proper co-ordination between investigators, prosecutors and the courts,” said the panel.

One member of the panel correctly terms this level of cash crime a form of terrorism. “As communities and business we have to become directly involved. These people are known to someone, somewhere and need to be flushed out – their photographs published as wanted criminals. Many of these individuals are actually known to the police,” he continued.

There have been over 140 heists in the past 140 days and retailers have a one in 4 chance of being hit, said Richard Phillips, joint CEO of Cash Connect, which manages money on behalf of the retail sector. But we shouldn’t ignore other cash robberies - 207 non-residential burglaries every day and 57 armed robberies at retail outlets.

“CIT’s should not be seen in isolation – the foot soldiers may change, but the gangsters and syndicates are the same.”

The spectacular nature of CIT heists attracts attention and dominates front page news.

Cash is critical to our economy and cash crime, of which CIT heists form a part, is the real issue here

84 per cent of all transactions are conducted in cash, with R136-billion in circulation at any given time, moving from the Reserve Bank and distributed to the consumer via banks and ATMS on CIT vehicle networks.

There are 59 500 cash collections per day and 2144 armoured vehicles on the road – moving targets and CIT heists aren’t new to the South African criminal landscape.

Dedicated police task teamsThere were 467 CIT heists in 2006/7, which were brought under control, thanks to dedicated police task teams. In 2016, the figure stood at 278 and jumped significantly to 378 in 2017.

According to Dr Mahlogonolo Thobane, who did her masters dissertation on CIT robberies, this breed of criminal is at the top of the food chain. They are regarded as heroes and providers in their communities and maintain a certain lifestyle, even boasted on social media. They operate in splinter groups and are recruited for their specific expertise: as drivers, or shooters – known as ‘madubula’ – and ‘off-ramp’ operators who wait nearby and drive the getaway vehicle.

Dr Thobane interviewed 40 cash robbers in prison and said of these only five didn’t consult sangomas, from whom they obtained muthi to become ‘invisible’. Some muthi is hallucinogenic, giving robbers an exaggerated sense of reality. Prison, she said, was no deterrent to cash robbers, merely an interruption to their criminal careers. After being released, most took up where they had left off, which questions the rehabilitative role of prison. Some robberies, she said, are even planned inside prison.

Anneliese Burgess, author of the recently published book HEIST! said very little stolen cash was ever recovered. Of

the R465 million taken in the ten heists she details in her book – all of which were prosecuted - only R63 million was recovered and the police stole R14 million of this. Robbers had little fear of being caught because invariably some aspect of the criminal justice system would fail.

The solution, panellists agreed, was not only for cash companies to increase security measures by further reinforcing vehicles, or by finding other innovative ways to guard cash. Although the technology is available, it’s simply too expensive for an industry that needs to balance what retailers can afford with the cost of cash collection and maintenance. Instead policing and crime intelligence needs to improve.

Crime specialist Dr Johan Burger from the Institute for Security Studies said crack police squads, like the Cato Manor Unit in KZN, which had helped bring down armed robberies to an all-time low in the province before it was disbanded in 2012, needed to be reintroduced.

Anti-crime activist Yusuf Abramjee said CIT robbers were currently able to run rings around over-stretched police, precisely because there are no dedicated teams to deal with sophisticated criminals. CIT heists are difficult to police because cash is transported over vast distances and there’s no way of knowing where they’ll strike at any given time. One minute there’ll be a heist on a busy Gauteng highway, the next on some rural byway in the Eastern Cape, or Mpumalanga.

Dr Thobane said research from incarcerated robbers indicated that there was no way to commit these cash robberies without inside information and police involvement.

“They all have insiders and intelligence from within the industry…they have even used police cars as getaway

vehicles because they knew no one would stop and search them.”

Dr Burger pointed out that there had been a sharp increase in all aggravated robbery crimes – ATM bombings; kidnappings and cash heists – but said Police Minister Bheki Cele was taking the right approach by speaking to the right people. With the appointment of a permanent Crime Intelligence head and a new head of the Hawks, things could begin changing.

“But the impact will be slow – there’s plenty of ‘internal fixing’ that needs to happen within the police. We need dynamism. We need priority committees to deal with priority crimes.”

Re-establish the Justice ClusterPhillips agreed: “There are solutions out there, we just need a coordinated response. We are waiting with huge anticipation to find out what plans Minister Cele has to combat cash robberies. But my call is that the Minister should consider the broader issue of cash crime as it affects, Banks, ATMS, Retail and Cash in Transit.

“Cash crime, is a crime against the economy and thus the state. In my opinion, the only way to take control is for all components of the Justice Cluster to work together in a coordinated approach. It worked well once in the '90s and there’s no reason it shouldn’t work again,” he said. ■

SA Retail sector under siegeAnneliese Burgess, author of the recently published book HEIST!

Photo: John Thomé

Minister of Police Bheki Cele, who is widely commended as the “right man for the job”, is meeting the police national

management forum on June 4 to make "serious pronouncements" on how police will "turn around the crime situation in this

country". “South Africans soon will be safe,” said Minister Cele.Image: TimesLive


Waste Management

South Africa’s waste industry is massive and diverse covering a wide range of different sectors and industries. Shopping centres,

restaurants and all forms of retail are expected to – and indeed are – playing an ever increasing and responsible role in the recycling of food and other waste to international standards.

This article aims to provide our readers with the Bigger Picture of recycling in order to instil a better understanding of the importance of recycling at every level.

In terms of job creation the recycling industry is growing rapidly. A mere twenty years ago there was no recycling industry and now it appears that in terms of employment it will shortly be bigger than the waste management industry.

Few people are aware of the difference between the industries let alone the complex structures involved. The waste management industry collects and transports waste to various locations, usually landfills. It is capital intensive because of the high cost of purchasing or leasing specialized vehicles. On top of that are high maintenance and labour costs. It survives on high volumes and low margins.

In the main, the recycling industry avoids the capital costs and is generally manpower intensive instead. It might be more efficient to use imported equipment but our markets are too small and the distances too great to make it viable. Besides, we have an abundance of labour and a shortage of jobs. The latest statistics show that the waste management industry employs 29 833 people and generates more than 15 billion turnover per annum*. The recycling industry presently employs

fewer people and generates less turnover. But all that is changing.

The formal recycling sector comprises: collectors, wholesalers, traders, processors, consultants, and specialists in every material. This diverse group of people in turn support an industry which builds and maintains equipment such as bins and balers. Financiers and investors are involved as are some lobby groups. Not only is the industry diverse in skills but also in approaches to business which range from government to private to informal.

Collectors vary from large companies, which recycle on sites and operate recycling facilities, through many smaller companies - often operating bakkies with a few labourers - and include street and landfill pickers. Middlemen operate buyback centres, and large warehouses where cardboard, paper and plastic are delivered by large trucks to be baled and shipped off to factories.

Others re-engineer the materials, recycling old glass into new glass, converting plastic into re-engineered pellets, clothing, tables and chairs and a host of other products. Polystyrene is transformed into roof tiles and picture frames.

Farmers recycle large portions of their product not sold and convert grape seed into oil. The commercial sector is becoming more adventurous in finding ways of disposing of expired products and by-products. Food and engine oil can be reprocessed or converted into bio-diesel. Wood can be repurposed into all manner of articles.

Traders make up an important part of the industry, buying and selling excess waste products. There is an online

trading platform which works very well. Researchers collect and analyse data and put out papers. Some events and conferences are aimed solely at the recycling industry.

Steel is the easiest material to collect and recycle and scrap yards require a section for themselves. Having been around the longest, scrap yards operate independently and don’t generally associate with the rest of the recycling industry.

There are areas of specialization: vermiculture (worm farms), composting and pyrolysis. A new comer is fly farming as well as a waste to energy plant. Some people find ways of recycling dog faeces and a myriad other materials.

The majority of the recyclers are already organized into industry bodies and others are in the process of doing so. These bodies offer platforms providing support, information, training and market intelligence to their members and the public.

What makes it difficult to calculate the numbers employed in the recycling sector is the informal sector. This may be defined as those people who are unable to work in the formal sector or who choose not to. Never mind their status they provide a service – not only in SA but in large parts of the world.

With so much innovation and the energy being put into recycling world-

wide it makes sense that the government sees recycling as a major opportunity for job creation.

The number of jobs as well as the fact that the jobs are suited to unskilled workers and women make it an ideal job creation target.

There are several consultants and lawyers who specialize in the environmental laws, licenses and permits.

Some specialist recyclers, like Smart Waste, are expanding their services assisting organizations obtain permits and licences, develop chains of safe custody and design and implement their own recycling programs and waste management plans.

The large number of players raises the question whether the sector is already overcrowded. In some areasit is; too many players chase the same few clients.

However, economic cycles aside, the sector is still growing strongly as a result of a growing population, a growing middle class and an awareness that everyone needs to recycle and not waste any more.

Taken as a whole the recycling industry is huge and growing. Watch this space.

*GreenCape Waste Economy Market Intelligence

Report 2017. ■

Food for thought: How big is the Recycling Industry?


According to a report by Reuters, Kellogg Co’s (K.N) quarterly results topped Wall Street forecasts in

April, getting a boost from sales of snacks such as Pringles chips and protein bars, and strengthened its bet on growth in Africa with a more than $400 million investment.

Demand for breakfast cereals has been on slide in the United States over the past several years, forcing the company to seek other areas of growth.

It has focused on growing its snacks brands and expanding in international markets, while also cutting sugar in cereals to revive sales at its legacy business that makes Froot Loops and Corn Flakes.While sales of cereals continued to decline, strong sales of its snacks as well frozen foods such as Eggo waffles and MorningStar Farms veggie patties, lifted overall sales by 5% in the first quarter.

The report notes that Kellogg’s shares rose 2% to $57.74 in early trading.

“U.S. cereal remains a challenge - but we were pleased to see signs of stabilization

with declines lessening from last quarter,” said Edward Jones analyst Brittany Weissman.

The investment in Nigeria’s Tolaram Africa Foods will give Kellogg greater access to west African markets.

It is the latest in a handful of deals Kellogg has sealed in the past few years to diversify its business, including RXBAR and Brazilian snacks group Parati.

Overall sales of $3.40 billion topped analysts’ expectations of $3.30 billion, according to Thomson Reuters I/B/E/S.

Kellogg said it expects net sales to rise between 3% and 4% in 2018 on a constant currency basis. The forecast includes gains from the Tolaram investment and translates to sales of $13.31 billion to $13.44 billion.

The company also maintained its full-year adjusted earnings per share

forecast, in contrast to other food companies such as Hershey Co (HSY.N) and General Mills (GIS.N) that cut profit estimates, citing higher freight and commodity costs.

Kellogg also flagged higher freight costs but said they would be offset by savings from an ongoing restructuring program and a shift to warehouse distribution.

“You’re just not seeing the impact to Kellogg’s margins as much as you would in some of the other companies

just due to the shift in the business

model to the new warehouse

distribution model from the prior

direct store distribution model,”

continued Weissman.

Kellogg’s net income rose to

$444 million in the first quarter of

2018 from $266 million a year earlier.

Excluding one-time items, Kellogg

earned $1.23 per share, handily beating

the average estimate of $1.08. ■

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Imagine a fire breaking out in a densely-packed shopping centre. Are you sure you know where the nearest emergency exit is, or even if

that particular shopping centre has the necessary equipment and evacuation planning in place? ASP Fire CEO Michael van Niekerk argues that many shopping centres are not compliant in this regard at all.

With about 13 shopping centre fire-risk evaluations under his belt to date, van Niekerk is well-placed to comment on the regulatory and health-and-safety requirements for smaller shopping centres in particular, such as strip malls. He comments that the main reason that many of these smaller malls are not compliant is either because they were built a long time ago, or have had tenants leave and new ones move in.

The average shopping centre is very much an environment in flux, van Niekerk adds. However, if anchor tenants occupy a space in excess of 2 500 m2, then sprinkler systems have to be installed. Another problem in terms of fire risk is that, with constraints on storage space, retailers often exceed the stacking-height limitation. “We also find that basic requirements such as the correct number of fire hydrants and fire-hose reels are not adhered to.”

Even if fire-hose reels have been installed, the length of the hoses themselves is often inadequate, especially if the effective radius of the reel is obstructed by racking and shelving, for example. Proper fire-detection systems are therefore the first, and best, line of defence for shopping centres in terms of fire prevention.

“If you do not detect a fire in time, and cannot evacuate people fast enough, it can be a major issue resulting in fatalities,” van Niekerk warns. Shops larger than 250 m2 in area are required to have manual fire-detection systems in place, while shops in excess of 500 m2 require automatic fire detection and emergency evacuation systems. This also needs to be linked to the shopping centre’s building management system, so that patrons and other tenants can be forewarned timeously in the event of any emergency.

Even if such systems are installed, the fire panels are usually either faulty, or the emergency indicators are ignored. This leads to the critical issue of smoke ventilation, which is mandatory for any enclosure larger than 500 m2.

It is essential that such smoke is contained to at least 2.5 m above the highest occupied level, in order to allow evacuees

to see where they are going, and for

there to be sufficient oxygen as well.

Van Niekerk points out that the

recognition time for a fire in a

shopping centre ranges anywhere from

30 seconds to five minutes. This means

that clearly-demarcated evacuation

routes are essential. Buildings without

sprinkler systems have to allow for

evacuation within 45 m, while the

common escape path in multi-storey

buildings is 30 m. This escape path

increases to 60 m in buildings that are

equipped with sprinkler systems.

Emergency routes have to have concrete

floors and roofs and brick walls, with

fire doors giving access to these

protected thoroughfares. Buildings of

more than three storeys require two

emergency exit routes. If a designated

area has more than 60 occupants,

push-bar panic bolts are needed for

such fire doors.

Van Niekerk highlights that such emergency doors are often either locked, or protected by additional security doors that themselves are locked, thereby preventing escape in the event of an emergency.

It is a legal requirement that such exits remain unlocked or, if they are locked, can be opened with a single movement. Security doors may be installed, but have to be locked in the open position while the building is occupied. Another hazard is that emergency exits are often used as areas for storage overflow, while in-store branding can obscure emergency signage.

“We also find that occupants tend to

respond better to a verbal command

than what to a siren, which means it is

an excellent idea for a shopping centre

to have a functional public-address

system in place,” van Niekerk points

out. In addition, it is

important that all staff

Risk Management

Shopping centres need to buy into compliant fire-prevention strategies

Michael Van Niekerk, CEO of ASP Fire

Many shopping centres do not comply with basic fire protection requirements

›› pg. 18


Risk Management

are trained in emergency evacuation procedures, and familiarise themselves with the general layout of the shopping centre so they can assist evacuees in the event of an emergency.

Another regulation is that shops within malls are to be separated by fire walls, which have to extend to the underside of the roof itself. In terms of glass shopfronts, the glass edges have to be separated by at least 1 m to prevent flames from jumping the gap between shops. “Shops often do not comply in this regard because they are simply separated by dry walling, or brick walls that extend to ceiling height,” van Niekerk points out. Any ceiling voids higher than 800 mm require fire-detectors to be installed if the shop is

equipped with a fire detection system, as well as void sprinklers if there are sprinklers installed in the mall.

ASP Fire is able to conduct fire-risk assessments and Rational Fire Designs for shopping centres in order to determine whether the actual fire load exceeds the installed fire-protection system design. “We are able to advise a client accordingly, and assist them with a suitable fire-protection strategy and system design to cater for the likely worst-case scenario that could be faced in the course of normal operations,” van Niekerk elaborates. ASP Fire offers turnkey fire protection projects, which means it can also supply, install, and maintain fire-protection equipment in buildings.■

‹‹ pg. 17: Shopping centres need to buy into compliant...

ASP Fire has conducted 13 shopping centre fire risk evaluations to date

The recognition time for a fire in a shopping centre is 30 seconds to five minutes


Property

JSE-listed diversified real estate investment trust Redefine Properties’ (JSE: RDF) strategy on solar energy is delivering cost

efficiencies across the business and improving performance on key sustainability metrics. Redefine’s total installed solar photovoltaic (PV) fleet will produce approximately 35 754 600 kWh (kilowatt hour) of solar power per annum when fully operational.

“This equates to an indicative saving of 32 819 tCO2 e which is roughly equal to 12 million litres of diesel combusted. If offset against Redefine’s total scope 2 carbon emissions of 46 761 tCO2 e in 2017, it is a 70% reduction, assuming a like-for-like portfolio of properties.

Renewable energy is a major point in sustainability projects and besides the financial returns that accrue from these efforts, it is clean economy on the roof, says Ilse Swanepoel, Head of Utilities at Redefine Properties.

Redefine’s scope 2 carbon emissions are essentially calculated as electricity consumption not recovered from tenants.

Last year, 9% of electricity consumed at Alberton Mall, Boulders, 90 Grayston, 90 Rivonia, Black River Park, Observatory Business Park, Wonderboom Junction, Wembley and East Rand Mall came from renewable energy.

Redefine owns and manages some of the country’s major retail, office and industrial parks including the celebrated Black River Office Park in Cape Town. Black River Office Park is the first office precinct in South Africa to receive Green Building Council of South Africa (GBCSA) certified Green Star existing building ratings for all of its eight buildings, with a combined 75,000sqm of office space.

Last year, Redefine rolled out a series of rooftop solar PV projects bringing its total installed capacity to 7.8 MWp. Once the power plants come on stream over the next 18 months, its total installed capacity will grow to 22 MWp. To date 4.2 MWp of additional capacity has already come on stream delivering approximately 6 373 500 kWh annually.

Redefine Properties was recognised by the South African Facilities Management Association (SAFMA) at its recently concluded awards gala and received Gold for this technology implementation

Some of the key assets where Redefine has already installed rooftop solar PV plants include Langeberg Mall (Mossel Bay), Boulders Shopping Centre (Midrand), Centurion Lifestyle Centre (Centurion), Stoneridge Centre (Edenvale), East Rand Mall (Boksburg), Matlosana Mall (Klerksdorp), Moreleta Plaza and Wonderboom Junction in Pretoria.

“We believe in making sustainability integral to our daily operations for as much economic reasons as environmental and are proud to be the recipient of this award,” says Ms Swanepoel.

The total cost savings achieved from existing plants and plants commissioned during the course of the year will be over R32 million per annum.

Given the increasing significance of sustainability issues, Redefine also completed an additional 2600 smart meter installations, achieved 43 Green Star ratings for buildings across its portfolio amongst which a recently completed project certifying 20 of its existing office buildings for Green Star SA ratings.

Solar energy currently represents the cheapest and most sustainable way to generate renewable electricity.

Besides producing no emissions and being silent, the panels furthermore shield large amounts of roof space from direct sun, leaving it cooler and further lowering energy consumption. In addition, technologies to further sustainable smart micro-grids such as efficient and cost-effective energy storage solutions is well within our sights to further enhance the benefits of our Solar PV plants.

“Solar is no longer niche and is a well-entrenched renewable energy source underpinning the achievement of green-building goals. Demand has grown in recent years, with many large blue chip tenants prioritising their own sustainability efforts, expecting the developer to dovetail and help achieve their objectives,” adds Swanepoel.

Besides tenants, Redefine’s strategic intent is to make its properties attractive for both shoppers and employees by locating new projects in close proximity to public transport directly reducing the impact on environment.

Rosebank Link for example has a direct, convenient and safe access to the Gautrain Station through a ground level landscaped pedestrianised thoroughfare.

Redefine has been an index component of the Dow Jones Sustainability Index for over four years now.

Furthermore Redefine also participates in the Global Real Estate Sustainability Benchmark (GRESB). In 2017, it received an A+ rating for disclosure, well above the global average of a C rating.

GRESB asses how companies perform on environmental, social, and governance (ESG) indicators such as energy and water consumption, carbon emissions, employee satisfaction, health and safety, and the supply chain.■

Solar powers Redefine’s sustainability efforts

Boulders Shopping Centre, Midrand. Redefine’s total installed solar photovoltaic capacity across all assets will produce approximately 35 754 600 kWh when complete

Wins Gold at SAFMA 2018 for solar PV technology implementation


Property

With more than 2 000 shopping centres countrywide – over 23.4 million m2 at the

end of 2016 – retailers have unprecedented choices when deciding where to lease.

Despite the plethora of choices, there are some fundamentals that never change when looking for the best leasing option. With its exclusive focus on retail and shopping centres over decades, specialist retail company Retail Network Services (RNS) has built up unrivalled expertise and experience in this dynamic industry. CEO Gavin Tagg offers his insights into commercial property leasing….

Market Research “Market Research is the key determinant to success,” says Tagg. “We research the market potential and look at what consumers want. Our in-depth market research determines the size of the shopping centre, the required merchandise categories, the spending habits of the market and the level of sales it can achieve. It also reveals the kind of experience that shoppers are looking for.”

Market Research is on-going. Shopping centres need to be responsive to consumers’ constantly-changing expectations. “Consumer demands are changing on an ongoing basis,” says Tagg. “In order to respond to their needs we undertake regular surveys to ascertain exactly what their needs are – and respond to them.” RNS also monitors international trends and adapts these trends to local markets.

“It’s all well and good to have the research, but it’s how you interpret it and what you do with it that counts,” continues Tagg. “How RNS applies this knowledge is what differentiates us.

Our expertise provides the right insights to support clients at every stage.”The Right MixEach shopping centre is unique – and therefore a specific, carefully-crafted tenant mix needs to be created to suit the shopping centre’s footprint.

Over the years, RNS has built up an unrivalled reputation for crafting winning tenant mixes. “It’s in our DNA,” says Tagg. “It’s all about creating an exciting, varied and vibrant combination of shops, restaurants and services that attract customers from day one.” RNS uses detailed research to create a mix that will deliver high trading densities, and excellent returns for the developer and the tenants.

RNS is meticulous with its selection – assessing potential tenants’ products, their business plans, cash flows and all aspects of their business to ensure “the right fit”. “Sustainability of our tenants’ businesses is key,” says Tagg. “Successful shopping centres are ones where developers and tenants both prosper.”

“We always look for the best location for the tenant within the centre to ensure that there are no dead spots and that all shops are profitable,” continues Tagg. “RNS understands productivity and with our experience in the design and layout of shopping centres, we ensure that all shops are placed in their optimum size from the outset.”

RNS’s recent success is the hugely popular Groblersdal Mall in Groblersdal, Limpopo. Built by property developer Twin City Development, the 35 000m2 centre epitomises a modern centre that services the community - with all the successful ingredients of a wide range of quality retail, services and facilities – all within a safe, vibrant and convenient setting. Groblersdal Mall was 100% let from day one.

Our Focus Ensures Your Success“With RNS focusing solely on shopping centre development, we really understand consumers,” says Tagg. “Dealing with multiple teams on multiple projects means that we access vast insights from different perspectives at any given time. This is what differentiates us from our competitors – and enables us to deliver.”

RNS is known in the industry for their hands-on approach to projects: “That is what our clients love about us,” says Tagg. “We are there from start to finish. From concept to completion. We are responsive and find solutions to all the challenges. Our clients know we are there with them every step of the way.”

“We also fully understand tenants’ requirements – and integrate these into the requirements of the developer. That enables us to create the magic!”

This year RNS will be unveiling a number of new, exciting shopping centres countrywide - including Hebron Mall – 22 00m2 (Hebron – North West Province), Midwater Mall in Mpumalanga (18 000m2), Tibani Shopping Centre – 14 000m2, (Polokwane, Limpopo) and Thulamahashe Mall – 17 000m2 (Mpumalanga).

“Our philosophy is simple: to create an exciting, unique, memorable experience for consumers which is a win for both developers and tenants,” continues Tagg. “We want to bring back the excitement and the buzz that has disappeared from shopping centres.

This means including more of the independent shops that are driven by entrepreneurs – with products and ideas that are different, fun, and vibey. Our focus is on creating communities”.

It’s All About the Third Space Consumers around the world are

putting far more value on experiences

than they are on possessions. Says Tagg:

“Today’s consumer is looking for

convenience, ease, unique spaces – a

comfortable space to relax, mingle and

eat – away from work and home.

Despite the growth of online shopping,

people still want to touch, feel, see,

hear and experience and if the mix is

right at a centre, people will be there –

it is that simple!”

“The most effective way to stand out

from the crowd is by offering an

exceptional customer experience.”

With the strong growth in shopping

malls, increased competition and new

competitive forces, particularly online,

the basics still ring true. “Success in

retail property leasing is all about

creating the ultimate customer

experience,” concludes Tagg. “With

RNS you can always trust that we’re

#GettingRetailRight”.■

Commercial Property Leasing – It’s all about the Customer Experience

? Gavin Tagg

Retail Network Services

Contact Telephone+27 11 807 6995

Email [email protected]

Company Websitewww.rns.co.za

Documents

SHOPPINGshoppingandretail.co.za/Magazines/2018/may/Shoppingmay...shopping & retail SA // May 2018 Page 1 editor's note contents May 2018 // Volume 6 - No.5 SA Retail sector under siege