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June 2018 // Volume 6 No 6&SHOPPING

Southern Africa

shopping & retail SA // June 2018 Cover Continued on page4

The Impact of Technology on the Retail IndustryT

here is no doubt that traditional brick-and-mortar shopping remains the backbone of the South African retail industry, but new ways of purchasing are fast becoming standard practice in retail markets around the

world, says Malcolm Horne, CEO of Broll Property Group. He was speaking on the occasion of the company’s release of its latest retail research paper entitled From E- to M- to A-Commerce: The Impact of Technology on the Retail Industry.

While E-commerce is well-entrenched in the market globally and the use of mobile devices (M-commerce) to conduct retail purchases is increasing steadily, A-commerce - also known as augmented commerce - is hovering in the wings, according to Broll’s research paper. Augmented commerce relates to retail that utilises augmented reality, enabling consumers to visualise products virtually in the real-world environment before purchasing. In general, South African consumers have yet to become more fully acquainted with these new retail practices, but local retailers need to keep up to speed if they don’t wish to be caught “sleeping on the retail watch”.

“There is enormous pressure on major retailers to acquire brands which meet

their consumers’ expectations and demands”

New trends and products are emerging daily, making the retail environment volatile and exciting. “Technology has been the driving force behind these radical advancements,” says Horne. In

addition, there is enormous pressure on major retailers to acquire brands which meet their consumers’ expectations and demands, while integrating new technologies into their day-to-day operations.

Are these relentless technological innovations driving brick-and-mortar retail towards an eventual retail apocalypse? It’s hard to say. Transforming a traditional retail business digitally and technologically can be an overwhelming task, but may be a necessary one for many retailers as end-users demand improved, instant and simpler shopping transaction experiences. In some cases, retailers have taken the leap of converting their “bricks into clicks” by closing under-performing stores and creating e-commerce fulfilment centres to beef up their online income stream.

The South African online shopping marketplace is still very much in its infancy but an increasing number of retailers are incorporating the convenience concept of “click-and-collect” into their businesses. Larger national retailers such as Dis-Chem, Clicks, Pick n Pay, Mr Price Group and Cotton On amongst others, now offer this convenient shopping service to assist time-strapped consumers.

Broll’s research paper paints a vivid picture of the scope of technologies which could become part of the retail landscape in the near future and which are already being used in some marketplaces.

Alibaba’s supermarket, Hema, for example, has revolutionised mobile app shopping. Within nine minutes of receiving an order

via the Hema app, staff hand-select the specific goods and send a personalised shopping bag to the delivery warehouse where it is packaged for delivery and delivered within 30 minutes in a 3 km radius. Furthermore, their app allows shoppers to purchase their goods via facial recognition technology.

Malcolm Horne, CEO of Broll Property Group

An increasing number of retailers are incorporating the convenience concept of “click-and-collect”

Page B shopping & retail SA // June 2018

shopping & retail SA // June 2018 Page 1

Front coverThe Impact of Technology on the Retail Industry

The masters of signage in SA re-brands

Should SA retailers do away with 'best before' dates?

Redefine attracts big box retailers to its centres Pargo partners with The Body Shop and grows pick-up point network to 1 500 stores Clover launches first of its kind Whistling Chef mealsCanal Walk innovates real connection with its shoppers

Ballito Junction sets first year trading records

Mastercard to make “tap and go” standard in the next five years

Buyer appetite for Neighbourhood Retail Centres remains high

The Next Big Thing in Retail Development

5 Reasons Why In-store Radio and Audio Solutions are a Hit

Unique, innovatiove and integrated in-store customer media experiences

In-store media – pleasure or pain?

Amongst the contents of this issue of Shopping & Retail SA is the sometimes contentious topic of

in-store media, be it audio (radio or PA system), visual, tactile or experiential.

There can be no doubt that at a professional level, such in-store media as those designed and implemented by Smart Media in Dis-chem stores and the innovative solutions offered by Moving Tactics, are indeed appealing enhancements to the customers' retail experience and are conducive to enticing not only purchases – but return visits to the store.

The danger with in-store media is when it's either intrusive, unappealing, distasteful or excessively loud – or all of the above.

This is often seen (or heard) in supermarkets and more often-than-not in many of the independent fashion and shoe stores – where we either have the constant public address announcements: “Craig, Craig – from the bakery section – please come to the front office...”. Yes you know what I mean. Or as a non-millenial, you walk into a shoe store to try on that good-looking pair of boots on display in the window – and promptly get blasted by the latest heavy metal or rapper release at full volume.

In both instances I make a hurried exit never to return again.

Yet many retailers in these and similar situations remain blissfully unaware of the damage being done to their businesses – let alone taking the time to consider the ease of rectifying this – even if it's a simple DIY solution driven by an own customer survey.

All it takes is due consideration and a little application of the grey matter and problem solved: Wallah! – more customers!

John

editor's note

contentsCover

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June 2018 // Volume 6 No 6

News

Retail

In-Store Media

Printed editions of Shopping & Retail SA reach decision makers in the following arenas, which is complemented by our electronic reach in these categories: Shopping centres and malls• Property owners• Shopping centre management• Facility management companies• Property fund management

companies• Leasing Agents• Financial institutions•Mall marketing and theme

concept originators• Listed property portfolio managers•Market research consultants

• Property developers• Project managers• Security, technology and ITC

managers (including analytics)

Retail sector• Locally based regional and

international retail groups• Store managers• Restaurateurs and restaurant

groups• Franchising groups• Buyers and procurement

managers• Security managers•Merchandising, marketing and

promotion managers• IT managers• Financial managers•Warehouse and logistics

managers

OR

shopping & retail SA // June 2018 Continued on page 3

News

The masters of signage in SA re-brands

Previously known as AE Plastics, this renowned family business, designer and supplier of specialised signage to the retail and commercial sector, recently re-branded at a lavish function held at its premises in Wadeville, Germiston – and will now be

AE Signage.

The launch function was a well planned fun-filled afternoon event attended by the company's many long-standing clients and suppliers, with all staff in close attendance throughout.

Clients, suppliers and staff of AE Signage enjoy the re-branding launch in the style of old family friends

The AE Signage team – it's all about family Brendan and Des Geraghty, MD and founder of AE Signage respectively


News

Sushi and a chowmain dish were on the menu and waitresses circulated with food trays to serve the guests, whilst entertainment was provided by the Seven Side Story band.

AE Signage – staying ahead of the curveEstablished some 42 years ago by Des Geraghty with a staff of four, the company focused on “point-of-purchase” products, where vacuum formed packaging and creative display shelving was the main priority.

“As our primary business has for many years now been directly focused on the design and supply of signage in southern Africa we took the decision to re-brand with a subtle yet meaningful name change – to AE Signage,” explained Brendan Geraghty, who joined the business 20 years ago and is now Managing Director.

“The new name is very specific as to the type of service and product we offer – and thus will be more appropriate in the marketplace,” continued Brendan.

Today AE Signage is proud of its unparalleled set of in-house skills, coupled with a modern well equipped 10 000 m2 factory complete with overhead cranes, warehousing for bulk storage, and offices located in Wadeville, Gauteng.

As a family business, the term “family” naturally extends to encompass not only all staff, but is loosely seen in the culture of the organisation to ultimately include suppliers and customers alike. This was evident at the launch function where it was clear that all at AE Signage don’t just supply signs – but build close business relationships as well. ■

AE Signage is proud of its unparalleled set of in-house skills, coupled with a modern well equipped 10 000 m2 factory complete with overhead cranes, warehousing for bulk storage, and offices.

shopping & retail SA // June 2018

TechnologyAmazon Go, a partially-automated, cashless and till-free store in Seattle allows patrons to shop in the store using the Amazon Go mobile app. Now the same concept is geared to shake up grocery retail in Chicago and San Francisco.

The research also highlights “endless aisle shopping” as fast becoming the latest retail buzz-phrase. As retailers look at downsizing their brick-and-mortar portfolios, the concept of providing in-store kiosks where customers can order products that are out of stock or not sold in-store is growing. Once ordered, products are dispatched from off-site warehouses to customers’ homes. “Showroom” or “bag-free” stores take this a step further. A range of product items is showroomed in-store but not kept in stock. Instead they are ordered online and delivered directly to customers.

If retailers are opting for more warehouse capacity, improved efficiency and speed is vital and this is where robots step to the fore. Various models of autonomous robots are already in operation, such as LocusBots that work alongside warehouse staff and assist in locating and transporting products, while Sure Sort excels at a small-item sorting system.

7Fresh supermarket in China already offers autonomous shopping carts. These types of carts guide shoppers to the exact aisle and location of the products needed, display advertising and accept payment. The carts even follow customers to their cars with their purchases and are programmed to return to the store completely unmanned.

And if that’s not mind-blowing enough, here come autonomous self-driving stores.

Toyota’s e-Palette, Moby Mart and Robomart are some of the autonomous self-driving convenience stores that could potentially roam the streets 24/7 once they have been fully developed. Essentially, consumers will use a specific app to request a visit from an autonomous self-driving store. Once the store arrives, the app can open its doors, consumers can select the products they want and are charged automatically upon exiting the store.

It seems clear from Broll’s research that the practice of retail is destined to be increasingly dominated by technology. “Adapting and keeping abreast of this uncertain landscape is a challenge that retailers will need to embrace,” concludes Horne. ■ Robomart, the autonomous self-driving convenience store

<<< From the cover


Should SA retailers do away with 'best before' dates?Citing confusion about the difference between “best before” and “use by” dates, UK retailer Tesco said research had found less than half of respondents knew what those dates meant and has announced that it will be removing “best before” dates from some pre-packaged products to combat food waste.

Should SA retailers follow suit?

Tesco, one of the largest grocery retailers in the UK and the third largest in the world, this week announced it would remove “best before” dates from 70

pre-packaged products because customers were throwing away “perfectly edible” food before it was spoilt.

The fruit and vegetable products include potatoes, lemons, tomatoes and apples.

Citing confusion about the difference between “best before” and “use by” dates, the retailer said research had found less than half of respondents knew what those dates meant.

The move is seen as part of a global effort to reduce food waste, which is estimated to be between 30% and 50%. That, while more than a billion people in the world suffer from chronic hunger.

Global non-profit Business for Social Responsibility estimates that to feed a world of 9 billion people by 2050, to ensure people do not go hungry, and to safeguard food security, “significant changes need to occur throughout the current food system, from crop management and harvesting, to processing and consumption”.

It says around 30% or more of food is discarded in processing, transportation, the retail environment such as supermarkets and restaurants and in home kitchens.

The rest happens before products even hit the shelves or fridges supply chain factors.

Food waste is not a Western problem alone: Dr Suzan Oelofse, principal researcher at the Centre for Scientific Research, noted in a presentation that food waste from local production only accounted for a 9.04 million tons a year - or 31.4% of average annual production, while South Africa is one of the driest in the world and total water loss as a result of food waste in the country accounted for nearly 22% of the total water used for crop production.

That was in 2013, before the onset of the country’s devastating drought.

A 2016 study by researchers at Stellenbosch University monetising cabbage wastage found

that it amounts to over R16 million a year, and wastes enough water to meet the needs of more than 195 000 people annually.

The study, published in the British Food Journal, is the first research effort of its kind in the country to monetise wastage and to calculate the environmental impacts of a specific type of food after it has been harvested or produced. The researchers extrapolated that about 103 000 tons of cabbage never ends up on the dinner table.

Tesco’s move has been welcomed by campaigners both at home and internationally. Food donation organisation Oz Harvest told news.com.au it was a “bold move” and encouraged Australian retailers to do the same, calling for a reassessment of food labelling regulations.

In South Africa, labelling changes need to come from the very top. Retailers and manufacturers are constrained by regulations that have been in place for a long time, says Adele Krogh from Food Focus, but the present definition of “best before” is from 2010.“It was introduced in 2010 with Regulation R146 (March 1, 2010), which makes it compulsory to put date stamps on food with

the exception of a few items such as unprocessed honey, unpacked meat, vinegar, sweets and fresh produce,” explains Krogh.

With high-risk products such as perishables, RTE (ready to eat, such as polony and pre-washed salad) products, it is for food safety reasons, so shelf life validation tests need to be done to confirm these dates.

“However, there is also a quality issue - quality can deteriorate and so brands will want to protect their reputation in this regard,” she notes.

Krogh says consumers often misunderstand date mark terminology and throw away good food, which contributes to food waste because they discard food that is still edible.

Your grandmother’s advice to conduct a quick sniff test, cut off the “bad bits” and toast stale bread is not all wrong. Sometimes though, food spoilage or contamination might not be perceptible.

I asked two of South Africa’s biggest retailers about their views on the Tesco food labelling issue:

David North, group executive of strategy and corporate affairs at Pick n Pay, said: “We are bound by South African legislation which requires date codes to be specified, and the circumstances in which best before, use by and sell by are required."

Checkers said: “While South African labelling regulations do not require a date of durability to be displayed on whole fruit and vegetables, Shoprite Checkers does indicate a sell-by date on certain shorter shelf-life items to ensure timeous stock rotation in stores for quality control purposes and to minimise wastage. Cut fruit and vegetables carry sell-by dates in accordance with regulations.

“It is not viable for the retailer to predict the durability of fresh produce by using an indicator such as ‘best before’ after the item leaves its environment.

“Furthermore, produce may still be fresh when reaching a best-before date but many consumers may believe that the food should not

be consumed after that date, which will contribute to wastage in the home.”

Checkers added that it would begin trialling the use of sell-by and use-by dates on its Ready-to-Cook convenience range, with a reduced price applied on the day the product reaches the sell-by date.

In the dark about date marks?Best-before: These have nothing to do with food safety - they are only about quality. They apply to found mostly on shelf-stable foods such as canned goods, pasta, coffee and biscuits, are about food quality and taste, not safety.

While still safe to eat and often perfectly fine after the best before date, quality can deteriorate, so you might well find crisps are slightly soggy, biscuits are not as crunchy and coffee doesn’t taste as fresh.

It is not illegal to sell products past this date, but consumers would rightly expect discounts.

Use by: These are about food safety, especially once you’ve opened the package. They especially apply to meat products and other perishable goods.

Do not to eat food that has reached its use-by date. Products are no longer guaranteed for their safety.

It’s illegal to sell products after this date as the product is not considered safe anymore

Sell by: These dates are created by retailers and are intended to help stock management.

They show the retailer when the supplier wants the items removed from shelves and give consumers time to use the product after it’s been bought.

Products that have reached their sell-by date are still edible thereafter, provided the food is stored correctly.

It is not illegal to sell a product after the sell-by date. ■

Georgina Crouth is a consumer watchdog with serious bite. Write to her at [email protected]

By Georgina Crouth

News


News

Redefine attracts big box retailers to its centresR

edefine Properties (JSE: RDF), a JSE listed diversified Real Estate Investment Trust (REIT), has finalised leases with two international big box

retailers set to début at its centres later this year. International retailers looking to open and expand their presence in the country have already snapped up more than 37 000 m2 of prime retail space across Redefine’s portfolio.

One of the world’s largest home improvement retailers, French based Leroy Merlin will open its first store in South Africa at Redefine’s Stoneridge Centre in Modderfontein while international sport goods retailer Decathlon will be opening at Centurion Lifestyle Centre and Wilgeheuwel, Little Falls to further grow its footprint in the country.

Leroy Merlin will occupy some 17 000 m2 of space at Stoneridge Centre covering two floors, parking and materials yard on the lower level and showrooms, trading floor, storage area, office space as well as a pick up zone on the upper level. Redefine’s development team

had to substantially remodel the specification document designed for an European environment to provide a new two level configuration to suit the South African environment and ensure consistency of look and feel across Leroy Merlin’s global stores.

Nashil Chotoki, National Asset Manager, Retail at Redefine Properties says, “The area surrounding Stoneridge Centre represents a prime location for an offering like Leroy Merlin. Over and above the established estates and precincts, massive housing growth is predicated for areas like Greenstone, Modderfontein and Linbro Park.”

Leroy Merlin stores offer a variety of internationally-sourced products with specialised advice and training for customers of any level of DIY expertise. Their stores normally carry anywhere between 30 000 – 60 000 products with Leroy Merlin’s customer focused employees able to offer sound advice on solutions, products and installations.

Cedric Sennepin, CEO of Leroy Merlin SA, says,

“It is important for Leroy Merlin to work with

serious partners such as Redefine and we are

confident that we developed a first store that

will attract customers from far.”

The run off benefits of bringing big box retail

to communities is more jobs for local people as

well as spill over traffic for other outlets in the

area. Directly and indirectly the home

improvement retailer will create jobs for more

than 200 people.

“Big box retail solutions offer a greater

diversity of options for shoppers. Consumer

trends point to greater support for such

convenience centres and we feel that retailers

like Leroy Merlin & Decathlon enhances the

“convenience” of some of our assets and

create a point of differentiation,” says Chotoki.

“Leroy Merlin in combination with other new

retailers at the centre will change the profile of

the node.”

Spending on home improvement continues to

remain resilient despite a sluggish economy as

consumers favour DIY options to save money.

Millennials and baby boomers are choosing to

update their homes instead of trading up and

in the process fast fashioning a new trend.

“Technology has inspired DIY projects.

Millennials today simply Google a solution, buy

products from home improvement stores to save time and money,” adds Chotoki.

“We are proud to be leasing space to global brands like Leroy Merlin & Decathlon. The combination of top quality assets and unique locations is an irresistible proposition for tenants in any economic cycle. We hope to further build a lasting partnership with these brands and are currently exploring other opportunities in the Redefine portfolio.”

Redefine’s two lease agreements with Decathlon cover approximately 5 000 m2. The sports lifestyle category has been the fastest growing retail category in terms of sales and is largely driven by a healthier lifestyle being adopted by South Africans.

“Decathlon’s offerings - products and price points, suit local tastes while the in-store “experiential” environment like mini football field and netball courts is fast proving to be a crowd pleaser,” says Chotoki in conclusion.

“Retailers continue to seek new neighbourhoods where they can achieve great revenue and our projects in burgeoning nodes like Modderfontein and Little Falls offer that density of new traffic that can support their businesses.”

Redefine is also in talks with H&M and other international retailers across the larger retail formats. ■


Pargo partners with The Body Shop and grows pick-up point network to 1 500 storesP

argo, South Africa’s leading smart logistics company, today announced a partnership with The Body Shop that will enable consumers to use the The Body

Shop stores as parcel drop-off and pick-up points.

Online retailers such as OneDayOnly, Spree and bidorbuy use Pargo’s click-and-collect delivery service to allow their shoppers to buy online and collect their parcels from Pargo pick-up points established at retail stores across South Africa. The partnership allows Pargo to grow their network of pick-up points to over 1,500 stores.

Pargo’s alternative delivery service, better known as click-and-collect, was launched early 2015 by founders, Lars Veul and Derk Hoekert in response to the growing South African online landscape and lack of available delivery options.

“Delivery is recognised worldwide as a friction point and major deterrent in e-commerce and it is a key enabler for the growth of the internet-based economy,” says Lars Veul.

“This is especially true in the South African environment as many people live in areas where delivery is very challenging. People that live in

small towns and rural regions often have trouble receiving their goods. This is the case for people in certain townships, security living estates and major office buildings too.”

With this in mind, Pargo has created an extensive network of drop-off and pick-up points. Pargo is already operating parcel points at trusted retail chains like Clicks, Spar and Freshstop at Caltex, as well as hundreds of independent retail stores, and now has a Pargo point in every town and suburb in South Africa. The addition of these The Body Shop stores will only strengthen this already extensive network.

Online retailers use Pargo’s alternative delivery method to service those consumers who cannot easily be reached.

Bernard Oberhofer, director at e-commerce store OneDayOnly.co.za, said they have been offering the Pargo service for a number of years as an additional option to the traditional courier service being offered to their customers. During this time they have seen a considerable increase in the number of satisfied customers opting to use the service.

“Pargo’s click-and-collect offers us a fantastic opportunity to further improve the customer experience. Not only is it convenient for our existing customers, it also enables us to cater to customers for whom home delivery is not a viable option. Without the Pargo option, we would miss out on potential orders,” says Oberhofer.

The Body Shop, a global beauty brand, has identified the Pargo solution as a valuable

addition to the variety of services they provide to their customers.

“We know shoppers are busier than ever and are looking for greater convenience and ease in everything they do. This new service will help them make best use of their time by removing the need to wait at home for a parcel to arrive. Pargo pick-up is just another way we are able to help our customers with convenient solutions that suit their individual lifestyles,” says Carlos Jardim, CEO of The Body Shop. ■

Clover has just unveiled its latest mouth-wateringly innovative offering in the Ready to Eat (RTE) category, complete with first-to-Africa

FreshVacSeal™ packaging technology, under the Whistling Chef brand. The packaging technology allows consumers to enjoy a fresh meal with an extended shelf life.

This latest range from Clover is completely unique as it’s the first time this packaging technology has been used in South Africa. The FreshVacSeal™ technology is a patent unique to Clover’s Whistling Chef range that guarantees freshness every time. The meals are preservative

free, a source of calcium, colourant free and has protein from nine amino acids.

The Whistling Chef is not just a clever brand name – these nutritious and delicious meals that offer family favourite recipes, actually whistle in the microwave when they’re perfectly heated! What’s more is that each meal undergoes ten quality checks, has an innovative ‘tray plate’ for easy eating and a first to market ‘no pierce’ film.

Launched at Melrose Arch with the help of local celebs Pearl Thusi and Ntokozo Dlamini who lead an intrigued crowd to the tasty offerings,

Clover’s latest products promise delicious convenience with quality ingredients.

“We know what a struggle it is for families, Moms who want to take the night off, and executives and students to rustle up a dinner that is nutritious, containing real, fresh ingredients that is ready in just a few minutes. It’s for this exact reason that we’ve created The Whistling Chef range,” says Marketing Manager at Clover Mone Gerryts. “Made with only the best and freshest ingredients, the Whistling Chef range contains real Clover cheese, milk, butter and cream to ensure a quality, preservative free product.”

The Whistling Chef offering has launched with five initial variants including Creamy Macaroni & Cheese; Cottage Pie; Creamy Alfredo; Beef Lasagne and Spaghetti Bolognaise.

“Our RTE meals contain FreshVacSeal™ technology which means a pasteurised, longer

shelf life,” says Mone. “And with the unique whistling packaging there’s no need to pierce the film on the meal either, your meal will literally whistle and let you know when it’s ready.

The Whistling Chef range is completely Halaal, and has been developed by food technologists and specialists. It’s been available from the 14th May at select retailers and forecourts nationwide. The product’s fun pay off lines perfectly sums up the range’s appeal across target markets: ‘Working late again!’, ‘Mom’s night off!’ and ‘Cooking for one made fun!’.

“We’re really excited to release this new range into the market and initial feedback has been incredibly positive,” she says.

The Whistling Chef range is available at select retailers and forecourts. ■

Clover launches first of its kind Whistling Chef meals

Marcelo Palmeiro, Executive, Brands and Corporate Development and Pearl ThusiClover's new offering under the Whistling Chef brand RTE Range

News


Canal Walk innovates real connection with its shoppers

Centre News

This super-regional shopping centre in the Western Cape steps away from the traditional norms of marketing and shakes things up with an innovative

initiative to speak to its shoppers.

My Story My Style is the most recent campaign presented by Canal Walk Shopping Centre, which features a selection of South African heroes; each with their own unique style and story. Each hero is intentionally completely different from the other, and each has become successful in their own right while always staying completely true to who they are and what they stand for.

“In line with the trend towards self-love and celebrating uniqueness by breaking away from societal norms, it’s time that Canal Walk embraced the diversity of its consumers by

supporting individuality across the board,” says

Camilla Lor, Regional Marketing Executive for

Canal Walk. To achieve this, the decision was

made, by the Canal Walk Shopping Centre

management and marketing teams, to step

away from past campaigns that utilised models

as protagonists and to focus on using role

models – or in this case brand heroes – that

would no doubt resonate more with shoppers.

Enter the seven brand heroes selected for the

campaign, who all hail from the Western Cape.

They are:

Aqeelah Harron-Ally - the Visionary Fashion and

Beauty Blogger who has dominated by making

a huge name for herself as one of the original

fashion bloggers in Cape Town. She has a big

following with her modest style of portraying

beauty and fashion. She speaks to thousands of

women from all walks of life through her blogs and online content.

Chris Bertish - the Ocean Pioneer, Inspirational Speaker and Author who is the ideal role model for Canal Walk. Apart from his quirky, laid-back and relaxed style he has become an inspiration for all South Africans.

Chad Saaiman - SA's Soul Man and an award-winning singer and songwriter. He has a smooth and sophisticated style that is a household name for many Capetonions. He is a true hero who is passionate about making his mark on the local scene and inspiring people as he does so.

Candice Boucher - Model Mom and Entrepreneur – the first face of Canal Walk and has now evolved from being a FHM, GQ, Sports Illustrated and Elle magazine model to a model mom entrepreneur. She is a supermodel who is relatable and fun-loving being both a sexy goddess and a mother.

Jimmy Nevis - King of Cool and a true Cape Town success story. He has numerous hit singles and has received extensive commercial radio success. While his voice is well recognised across the country he has a unique sense of style, always pushing the envelope with fashion.

Jade Hubner - Adventure Seeker and TV Presenter whom is multi-talented and extremely versatile. She is a recognised face as a Top Billing television personality, fitness fanatic and singer. She is a superwoman warrior in her own right, who is taking on the world and making something of it.

Tony Gum – an Artist in Learning as an upcoming fashion and art influencer. She is known for her thought provoking creative self-portraits. She has been dubbed as “the coolest girl in Cape Town" and is featured by Vogue magazine.

Lor adds: “More so now than ever before, brands want their customers to feel as if they are being catered for no matter what shape, size, age, race or demographic they may be, and as a shopping centre that believes in being able to cater to everyone’s needs, offering shoppers the opportunity to express their unique stories and style under one proverbial roof is of utmost importance.”

My Story My Style, which was introduced as a campaign in October 2017, is an emotive journey the shopping centre will be taking its customers on, and will, month-by-month until March 2019, give shoppers a more in-depth look into each brand hero’s life to better understand their individual stories and their unique style by means of in-centre marketing touch-points as well as via its direct marketing, digital and social media platforms. ■

Jimmy Nevis Tony Gum

Jade Hubner

My Story My Style


Geraldine Jorgensen, CEO of Ballito Junction

Twelve million people spent nearly R2 billion at Ballito Junction Regional Mall during its first year

Ballito Junction sets first year trading recordsTwelve million people spent nearly R2 billion at Ballito Junction Regional Mall during its first year.

This iconic young shopping centre is already outperforming in its industry, market segment, and region, and has become a firm favourite in its immediate

market and beyond.

The 80 000 m2 world-class shopping centre opened in March 2017 and, since then, Ballito Junction has quickly become the darling of shoppers from the Dolphin Coast as well as from Durban and beyond.

The mall’s figures show that half of its shoppers come from its immediate core catchment area of Ballito and its surrounds, and over one third (34%) come to the mall from the Durban area.

A breakdown of its Durban shoppers shows that while it is some 62km away from the mall, Durban itself accounts for 16% of Ballito Junction’s shopper market. Around 13% of its

customer pool drive the 28kms from Verulam to the new mall. Umhlanga, which is 31 km away, represents 4% of its total shoppers.

Another 12% of Ballito Junction shoppers travel even further to visit this uniquely compelling mall, coming from the KZN Midlands, Zululand and Highway areas.

All-in-all, KwaZulu-Natal shoppers make up 77% of Ballito Junction’s customers, but holidaymakers have also flocked to the new mall. Over the last year, Gauteng visitors accounted for 19% of Ballito Junction’s shoppers.

CEO of Ballito Junction, Geraldine Jorgensen, says: “The vision for Ballito Junction was always to be a mall that is designed for and sustained by its regional shoppers, with spend from holidaymakers being a bonus. Our shopper

figures show that this has, in fact, proven to be the case. We are very pleased with the positive trends that we are seeing”

“With an average of nearly 1 million visitors a month, Ballito Junction's best performing month so far was December 2017 when it attracted some 1,4 million shoppers”

Owned and developed by investment consortium of Menlyn Maine Investment Holdings and Flanagan & Gerard Property Development & Investment, Ballito Junction Regional Mall opened during one of the toughest economic periods South Africa has seen. Despite this, the mall is showing strong trading that is growing from strength to strength.

Even after a short time in its markets, Ballito Junction and several of its retailers are outperforming other, more established, comparative retail elsewhere in the region.

The mall’s trading is expected to continue on its upward trajectory. Located at the heart of a burgeoning community, residential developments representing over 3 000 new homes are currently under construction or planned for development in its growing immediate catchment market.

Jorgensen, says: “Ballito Junction’s first year of trading has been remarkable. We are extremely positive about our future and appreciative of the support we are receiving from our wonderful community.”

The mall represents a major private investment that benefits its community with increased economic prosperity by creating jobs and keeping retail spend local. However, it has also become very involved in other meaningful initiatives for positive community benefits.

She adds: “Looking back on the past year, we have embodied our commitment to making a positive contribution to Ballito and the Dolphin Coast, not only with the best shopping and entertainment, but also by supporting community, cultural, sporting, welfare and business organisations and events. Ballito Junction is incredibly proud to be a member of this community and will continue to lend our support to the area and its people.”

“Ballito Junction, the Dolphin Coast, KwaDukuza and the entire iLembe District are becoming a greater focal point in the KwaZulu-Natal province as a place where retail, entertainment, business, and people come together. We are excited about the future and committed to continuing to be an asset that our community can be proud of,” concludes Jorgensen. ■

News


Mastercard has announced an initiative to create greater payment consistency by making “tap and go” standard in the next five years. The changes underway ensure that consumers, merchants and governments around the world will be able to take advantage of next-generation digital technology which deliver greater security and convenience.

Beginning later this year, Mastercard will require a series of card and terminal upgrades across the Middle East, Africa, Europe, Latin America, and Asia Pacific, to bring secure and convenient contactless card payment technology to more people in more locations around the world. This move means that every

cardholder will be able to “tap” their card or device to pay, in these regions and every day.

The speed of contactless payments, coupled with its dynamic EMV grade authentication protecting against fraud, is transforming everyday commerce and benefiting merchants and consumers alike. It also helps issuers by increasing card usage and displacing cash, and powers unique use cases for governments like public transportation in some of the world’s biggest cities.

Today, millions of consumers are able to pay with a simple tap in over 8 million locations across 111 countries. Across the Middle East and Africa, there was a 27-fold increase in contactless transactions in 2017, with the volume spent growing 18x.

The demand for contactless payments is strong and growing, with 15% of all in-store purchases globally using the technology. Recognizing the opportunity to accelerate adoption, Mastercard has established a roadmap that sets out the following requirements:

•After October 2018, all new acceptance terminals in the Middle East, Africa, Europe, Latin America and Asia Pacific will have EMV chip and contactless enabled;

•After April 2019, all new cards issued in the Middle East, Africa, Europe, Latin America and Asia Pacific will have EMV chip and contactless technology; and

•By April 2023, all merchant terminals in the Middle East, Africa, Europe, and Latin America will be EMV chip and contactless enabled.

“Our vision is a world where everyone can simply and safely tap their card or device when paying in a store and quickly be on their way,” said Ajay Bhalla, chief security solutions officer at Mastercard. “This marks a significant step towards greater consistency, security and speed for everyday payments while laying the groundwork for future innovation.”

Markets across the Middle East and Africa have already undertaken and embraced the journey to contactless payments. The momentum is expected to receive a further push with the evolution of the acceptance landscape in the region.

Dispelling the Myths: The Reality about ContactlessFor many people, paying with a card is still associated with a “swipe” or a “dip”. However, the owners of more than 370 million contactless cards accepted in over eight million locations in 111 countries can today pay with a simple tap.

South Africans, too, are starting to enjoy the benefits of ‘contactless’ payments. You simply tap your card against the card machine at the point of sale for transactions of up to R500 – no swiping, signatures or PIN codes required; for transaction above that amount you can still tap and enter your PIN. Mastercard’s contactless technology is giving you the reassurance that it is both safe and easy to pay with a tap.

The cards and devices contain an embedded chip and a radio frequency (RFID) antenna that provide a wireless link with the contactless reader. When the card or device is tapped against the reader, information is securely transmitted within a fraction of a second. Here are three ways Mastercard ensures that contactless payments are safe:

Contactless payments require different information to those made over the phone or

online. Your name, the three-digit security code on the back of the card, and billing

information like your address are never transmitted. Instead, along with the account

information, a one-time-only code is sent from the card or device to the reader to identify

each transaction.

Working with issuers, retailers and payment service providers, Mastercard uses robust

fraud detection systems and artificial intelligence to spot suspicious activity and stop

fraud in its tracks.

If your card is compromised, you are protected with a global zero liability promise and

will not be liable for unauthorised charges.

Let’s take a look at the myths and the realities of contactless payments:

Knowing all the facts (and seeing through the fiction) will help ease your mind if you have

a contactless card. ■-

MYTHS REALITIESA thief can easily electronically pickpocket your contactless card or device.

There are smartphone applications that enable the phone to read some data from a contactless enabled card or device, but they can only read the account number and expiration date. The thief would need to be physically close to the card to get this information.

If a thief intercepts your contactless information, they can create a counterfeit card to use in a store.

When a contactless transaction takes place, the card or device provides the reader with a dynamic, one-time-only number that identifies each transaction. It would be nearly impossible for a fraudster to copy the encryption technology used to generate this dynamic number and create a functioning counterfeit version of a contactless card.

Even if a thief can’t counterfeit your card, they can make purchases online or by phone.

For a purchase to be authenticated and authorised via phone or online, several pieces of information must be presented, including the three-digit code on the back of a card, and your name and billing address. Since the card or device does not send the code, billing address or postal code information or name over the contactless interface, the thief won’t have the information typically needed to conduct payment transactions, either in person, on the phone or online.

You are responsible for purchases made by thieves if they steal your card information

Mastercard protects consumers against fraudulent charges with a global zero liability policy. That means you are not held liable for unauthorised fraudulent transactions.

In addition to stealing your card data, thieves can also steal your identity.

Mastercard contactless cards and devices do not transmit information about the cardholder, such as name or address, so there is very little risk of actual identity theft.

Mastercard to make “tap and go” standard in the next five years

Every cardholder across the Middle East, Africa, Europe, Latin America and Asia/Pacific will be able to tap their Mastercard or device in stores by 2023

Middle East and Africa recorded a 27-fold increase in contactless transactions in 2017 season

News


Retail

Buyer appetite for Neighbourhood Retail Centres remains highI

nvestor demand for solidly-performing neighbourhood and community retail centres continues to outstrip auction supply; a trend unlikely to change in the medium

term.

That’s according to Joff van Reenen, Lead Auctioneer and Director of High Street Auctions, who says smaller retail centres have been a constant feature of their sales since the beginning of last year.

“Before that we saw perhaps one or two a year, but they’re now in the catalogues for almost every auction. The centres that are put up for sale tend to be more established neighbourhood strip malls with long-term tenants. They can range in price from extremely affordable to extremely dear and the difference is determined by a number of factors including tenant mix, location, footfall and convenience. Either way, there’s apparently bottomless buyer appetite for them.

“Two years ago it would have been unheard of for the hammer to fall above R100m on retail holdings in smaller metro hubs, but it’s been a frequent occurrence in the past 18 months and it’s been lucrative for both buyers and sellers,” says Van Reenen.

According to the SA Council of Shopping Centres (SACSC), South Africa has the 6th most shopping centres in the world.

Morgan Stanley Capital International (MSCI) Real Estate SA conducted a study last year on behalf of the SACSC and when the results were released MSCI Executive Director Phil Barttram specifically noted: “MSCI’s latest research, based on SACSC’s shopping centre directory, provides a unique perspective of the linkage between expected retail mall space, economic activity and population densities.

”Given a highly competitive environment for malls in specific nodes, we believe that centre selection within the retail segments will become increasingly important. There are fundamental drivers of mall defensiveness and it will be the malls that best exploit these factors that will prove to be more resilient.”

Van Reenen says that’s one of the main reasons neighbourhood malls continue to attract investors; they do not necessarily rely on large national or international anchor tenants but tend to be filled with smaller retail businesses owned by local entrepreneurs who understand their communities and how to service them. These are the rarer retail segments on the open market, though.

“From what we’ve seen coming over across the podium in the past 18 months, most community retail centres tend to be fully tenanted with a low turnover because space isn’t expensive and customers pop in frequently, giving them fairly high footfall. Their

convenience appeal is second to none; everyone in the neighbourhood stops by to pick up grocery items they need urgently, see their local hairdresser or just have a quick cup of coffee. Parking tends to be free as well, adding to their appeal.

“That’s exactly what investors seek – stable tenancy and high footfall – which is why these centres are doing so well at auction.”

Van Reenen says smaller retail centres have come on the market more frequently as a result of large property funds actively reorganising and consolidating their portfolios; a trend that started in early 2017.

“And perhaps the most positive outcome of this trend is the exceptional investment opportunities these sale lots have provided for smaller, emerging funds. In the South African context, diversification is exactly what we want to see happening with long-term investments and for many new players in the market these malls will become the cornerstones of their growing portfolios.”

According to SACSC, retail supply in the small-town markets is likely to achieve double-digit growth until 2020. The Mpumalanga, Limpopo and Eastern Cape provinces combined contribute 82% of the overall retail pipeline in the small settlement-type markets.

The study conducted by MSCI also noted that as of July 2017, the SA retail development pipeline measured 1.9 million square metres across 68 centres - the bulk of which is planned for completion in 2018.

Van Reenen says with so much new retail development in the pipeline, it’s natural that smaller centres that have been around for a few years will float to the top in the process of corporate asset adjustment, which occurs through all economic cycles.

“Asset registers are assessed frequently for surpluses or redundancies and especially in flat economic periods the speed at which a property can be sold at auction compared to through traditional brokers is something corporates find very attractive.

“The sales model also better serves their needs, because once the hammer falls it is standard for the full purchase price to be paid within a month. The transparency, agility and speed are a transactional triangle that works for boards and shareholders, which is among the reasons so many of our clients have been with us for years.

“Buyers also benefit because they can acquire assets at fair market value as determined by demand on the day, and there are frequently exceptionally good deals to be found.” ■

The Mkhondo Mall in the Mpumalanga town of Piet Retief went under the hammer in the May multi-property sale by High Street Auctions. The community retail centre that includes a Cashbuild and a liquor store among its tenant mix,

sold for some R14 million and the new owner will reap a net annual income of around R2 million while deciding whether to expand the retail centre’s facilities by an additional 10 000 m².

The Mkhondo Mall in the Mpumalanga town of Piet Retief went under the hammer in the May multi-property sale by High Street Auctions. The community retail centre that includes a Cashbuild and a liquor store among its tenant mix,

sold for some R14 million and the new owner will reap a net annual income of around R2 million while deciding whether to expand the retail centre’s facilities by an additional 10 000 m².

Retail Knysna: The auctioning of community retail centres isn’t confined to the north of the country; several Western Cape neighbourhood shopping hubs have come under the High Street Auctions’ hammer in the past 18 months,

including this sweet building in Knysna on the Garden Route.


Country Mall

Tibani Mall

Retail

Bigger shopping centres. Better customer service. Shorter supply chains. More product offerings. Quicker turnaround times. Easier access. Simpler solutions. In the quest for the Ultimate Consumer Experience, retail

development is evolving all the time.

The much-anticipated transformation of Fourways Mall in Johannesburg into a 170 000m2 mega-mall is the subject of much discussion, but there are many other exciting developments driving the growth of retail. Gavin Tagg, who heads up specialist retail development and leasing company Retail Network Services, shares some of these…

An Experiential DelightToday’s consumer is spoilt for choice. Shopping centres must appeal to them otherwise they will simply go elsewhere. Retail today is all about the customer’s experience. Successful retailers are those who make the experience easy, enjoyable and memorable. “Developers and retailers are really upping their game and are responding to consumers’ ever-changing demands,” says Tagg. “The constant change in the landscape is forcing retailers to innovate and find new ways of doing things. The pressure is on continuously, but it is an exciting place to be!”

So ‘Last Season’…..“Today’s record is tomorrow’s standard - what’s ‘hot’ today will not be ‘hot’ tomorrow: that is the harsh reality,” continues Tagg. “Retailers constantly need to re-invent themselves and be creative in the things that they sell, the way that they sell them and how they involve the consumer. Retail needs to be exciting, social and fun.” With consumers constantly being bombarded with messages, the sensory overload makes it more challenging than ever to break through the clutter.

It’s a Feeling Thing“The customer experience remains king,” says Tagg. “And for retailers to retain their customers, they need to experiment, evolve and explore– continually!” Fortunately, there is an endless array of communication touchpoints available today that retailers can leverage - before, instore and after the customer’s shopping experience. Social media, smart technologies, personalised videos, instore apps, cross-channel marketing, SMSes and email are just some of the tools retailers are using to enhance the consumer’s journey to make it memorable and pleasurable, whilst driving profits. “Social media offers retailers a powerful tool to delight consumers and engage with them,” says Tagg. “What with Instagram stories, Facebook live and Messenger and similar apps, each platform

is an opportunity to create conversations”. Retailers can enrich the customer’s experience at any time and point in their retail journey whilst growing brand loyalty and trust. Personalised, multi-sensory experiences are what today’s shopper is looking for.

It’s all about ‘You’“Customers need to feel special and appreciated,” says Tagg. “This in turn will boost revenue”. In fact, research from the global management consulting firm Boston Consulting Group suggests that brands that integrate data and advanced digital technologies to create personalised customer experiences are increasing their revenue by 6-10% – two to three times faster than brands that don’t. “Communication needs to be tailored and unique offerings made,” agrees Tagg. “The days of only taking a mass market approach have gone for good.

Personalisation is the new approach. You have to talk to your customers”. “Technology is a great enabler and has allowed

retailers to leapfrog from personalised emails and targeted

offers – to an all-embracing customer experience that can

excite the consumer”. “Contrary to popular belief that online

retail will see the demise of bricks and mortar stores, just the

opposite is happening,” continues Tagg. “94% of all retail

sales in the USA still take place in a physical store and in South

Africa the percentage is probably higher. Consumers want to

be able to see, feel and tryout the item they are looking to

purchase, something that online retail will never be able to

offer”. “Online stores complement physical stores,” says Tagg.

“People still go to physical stores for a unique, instore

experience. Retailers who offer a unique instore experience will

thrive!”

Offer the Unexpected “Time is our most precious commodity” concludes Tagg.

“Shopping centres need to meet and exceed shoppers’ desires

to experience and enjoy what can sometimes be time spent on

grudge purchases. Socialising is a large element of the

experience. Make it fun! Make it memorable!”

The Latest at RNSRNS has several innovative shopping centre projects on the go

and an exciting pipeline of Retail over the next few years,

Rainbow Junction (92 000m2), Hebron Mall (22 000m2), and

Country Mall (20 000m2) to name a few. These include the

17 000m2 Thulamahashe Mall in Mpumalanga, scheduled to

open in October and community convenience centre Tibani

Shopping Centre in Polokwane, Limpopo which will open in

August, comprising 52 shops within 10 500m2. Our deep

analysis and thorough understanding of every retail

development we work on gives us the edge to plan and

position developments with the benefit of sharpened

consumer insights, concludes Tagg. It’s all about “Getting

Retail Right!”■

The Next Big Thing in Retail Development


5 Reasons Why In-store Radio and Audio Solutions are a Hit

The impact of music on consumer behaviour is well-known with research showing that consumers shop for longer, spend more money and have an

enhanced shopping experience if they’re exposed to music. Many local and international retail and restaurant brands are implementing bespoke in-store music and audio solutions to create a more fun, welcoming and brand-specific experience.

According to Chris Day, Managing Director at Moving Tactics, South Africa’s leading digital

signage solutions company, there are four reasons why in-store music makes sense.

1. Create a VibeThe idea of entering a retail or restaurant environment which is silent and has no ambience doesn’t appeal to the most ardent consumer. Shoppers and diners want to walk into a warm, welcoming atmosphere that would enhance their shopping experience. A good music selection can even be so appealing that shoppers return – even if they don’t have any intention to buy.

Music is an important part of any business and brands such as Wimpy and Steers are implementing customised in-store music with the capability of voice-over announcements.

2. Reduce Waiting TimesResearch has shown that when listening to music, people’s perception of time changes. A long queue or waiting time feels must shorter when listening to good music and it also reduces frustration. If shoppers are entertained, they are in much less of a hurry to move on.

3. Enhance your Brand ExperienceMusic is an important part of any business as it enhances the customer experience and reflects a brand’s personality. Through Moving Tactics, brands are able to choose a music genre such as

a family or urban contemporary selection or they can create their own unique package and tailor it over time to suit their local customers, a specific region or a store category.

Trials have proven that style and tempo of music has an effect on shopper behaviour and changes the atmosphere. Playing slow music leads to customers spending more time in-store and an increase in sales when compared to a faster tempo of music.

4. InteractionTechnology allows for customers to generate in-store content via the means of social media. Customers can use apps such as WhatsApp to send voice notes which can be edited and added to the in-store radio/audio solution’s on-air content and in this way have customers’ opinions heard.

5. Comply with the LawThe old days of retailers playing CDs in-store with no consequence are over. The Southern African Music Rights Organisation NPC (SAMRO) is clamping down on businesses playing music without paying the necessary licensing fees and tariffs. Brands must make sure to align themselves with fully-licensed suppliers to provide a customised in-store radio music solution. Moving Tactics is licensed with RISA, CAPASSO & SAMRO; and can assist clients with the licensing of needle-time right with SAMPRA. ■

Moving Tactics is a leading South African digital signage solutions company that develops customised digital signage technologies and is constantly creating innovative communication solutions.

Unique, innovatiove and integrated in-store customer mediaexperiencesD

is-Chem Pharmacies have partnered with in-store advertising innovators Smart Media to provide its stores with an integrated advertising experience

that enriches the customer journey. This unique in-store media mix places the shopper top of mind and is designed to convert branding into retail sales.

“We have created a world-class experience for Dis-Chem customers - from the moment they enter the store all the way through to the point-of-sale. With so many touch-points available to Dis-Chem, Smart Media has enabled Dis-Chem to introduce innovative technologies that position products in a fresh and exciting new light,” says Mark Uria, CEO of Smart Media.

He believes that the 360-degree integrated in-store advertising solutions which Smart Media provides to Dis-Chem perfectly enhances the traditional media currently in use. Even more so, these innovations uplift the quality, aesthetics, and consistency of visuals used in-store.

The journey starts with co-branded Smart Windows outside the store. With thousands of South Africans passing shop front windows every month, these tailored displays can position brands and products in exciting ways during peak promotional periods. Using creative designs and customised environments such as layered 3D backgrounds, brands can establish an immediate, intense brand presence even before a customer enters the store.

Upon entering a Dis-Chem store, customers pass by security barrier sleeves, also known as ‘Beepa Sleeves’. These provide highly sought-after opportunities that generate significant sales and can be customised according to the campaign messaging of any brand. As this is the

entry and departure point of all stores, it has tremendous footfall and public presence.

Furthermore, Smart Media provides unique ways to brand moving media such as baskets and trolleys which provide brand-in-the-hand

intimacy travelling throughout the store with the shopper. The journey continues with the use of high impact Dispensary posters that provide prime positioning at Dis-Chem stores nationwide and are our most popular medium.

“With more than a million customers waiting on average 12 minutes to be served at a Dis-Chem dispensary, we deliver a highly impactful poster display with many units illuminated from behind to give high brand impact during focused customer dwell time,” says Uria.

Building from there, Over The Counter (OTC) queuing rail posters supplement the displays at the dispensary with invaluable space that creates top-of-mind awareness for both the customer and pharmacist. The customer journey then concludes at point of purchase with till point signage. These prime spaces are ideal for reward programmes, third-party partnerships, promotions, and other relevant campaigns. Using Smart Media solutions, Dis-Chem and its partners are able to communicate directly to consumers at a critical time when they have their wallets in hand.

“Smart Media is focused on creating new ways of engaging with shoppers and converting products on shelves into sales. All our solutions are designed to build engagement and product recall, offering Dis-Chem customers a unique experience that increases excitement and spend. We’re currently piloting new digital opportunties and are already getting positive feedback from customers,” concludes Uria. ■

In - Store Media

Tibani Mall

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