September 2011

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Contents September 2011

Newsline Small Domestic Appliances South Africa improves its global competitiveness 4 SDAs on upward trend in Europe 21 Kronotex appoints Aluvert as wholesaler in SA 6 Small appliances hold their ground in local market 23 HP partners with Dion Wired to open store-in-store 6 SodaStream joins in the fight against breast cancer 23 Tedelex acquires distribution company 7 Not all coffee makers are created equal 24 First new-look Hi-Fi Corp opens in Centurion 7 Luxury pressure cooker defines simplicity 24 Retail confidence still restrained, survey reveals 8 Best tasting chips without the oil 25 Wintec Solutions acquires distribution rights for three new brands 10 Product Showcase Hisense drives sales with a z-card 10 Four new colours added to Van Dyck Diplomat Unilever named SA's best large-sized and FMCG range 26 employer 11 Electrolux brings a sense of luxury to everyday Closed loop cash system attracts attention 11 cooking 26 400th Clicks store opens in KZN 12 Toshiba unveils world’s first glasses-free 3D laptop 27 Massmart results indicate possible improved Kodak brings innovative consumer inkjet printers consumer environment 12 to SA 27 Newsline International Fair Report Sony, Toshiba, Hitachi agree on small LCD business IFA 2011: Retailers and industry confident of good merger 13 end-of-year business 28 HP dumps tablets, phones, computers and CEO 14 Samsung, Apple tablet row heats up in Australia 14 Diary Samsung receives top rankings in sustainability Thousands expected at debut India International index review 15 Furniture Fair 30 Electrolux acquires Chilean appliance company CTI 15 Australian International Furniture Fair returns World furniture outlook – report now available 17 in 2012 30 Special Report Publisher's Comment Philips journeys across Africa to improve access to What is leadership? 32 mother-child care, solar lighting 16 Talking Points SA business not exempt from global financial crisis 18

5 1122 1177 2288 HGR Team Publisher & Editor-in-Chief Ian Hughes Email: [email protected] )PNF
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Editor Aurette Bowes A slight improvement, Email: [email protected] partnerships aplenty, and what's coming out of Berlin National sales manager Frances Venter The news that South Africa's global competitiveness ranking has improved somewhat Cell: 072 607 5134 since last year is encouraging, but the country continues to occupy a lower position Email: [email protected] than the 45th place it held in 2009. Although improvements in the accountability of private institutions, strength of investor protection and technological readiness have Design & Layout been made, clearly much work still needs to be done. Aurette Bowes The increasing number of partnerships currently being forged among industry Email: [email protected] players in the home goods market is noteworthy. HGR carries news on no fewer than four this month, including an acquisition, two distribution agreements and a retailer- Special Projects supplier partnership. It indicates a positive sentiment in the industry, despite a recent Taryn Haley BER survey indicating "restrained" retailer confidence. Email: [email protected] That said, our Talking Points column warns local businesses they are not immune to the current global financial crisis, and need to take appropriate steps to ensure their Administration & Subscriptions company does not fall prey to the volatile economic climate. Loveness Banda The above articles, together with a special report on Philips' recent Africa roadshow, Email: [email protected] a comprehensive feature on the state of the small domestic appliances market – both locally and internationally – and feedback on the latest home appliances trends Office emerging from the recent IFA trade show in Berlin make for a cover-to-cover-read 203 Melrose Place, Willowbrook Close, September issue. Melrose North Until October. PO Box 41632, Craighall 2024 Tel: (011) 447 9326, Fax: (011) 447 9838 Email: [email protected] www.hgr.co.za

Printing Park Avenue Sattar Motani Copyright on all editorial in Home Goods Retailer is owned by the publisher and reproduction without permission is It was with deep dismay that HGR learned of the recent and untimely death of Sattar prohibited. The opinions expressed in Home Goods Retailer are not necessarily the views held by the editor or publisher. Motani. Sattar was a true stalwart of the furniture industry, a co-founder with his brother We reserve the right to edit – for purposes of space and Omar of the hugely successful Motani Industries, and subsequently the proprietor and clarity – all editorial material and letters submitted for publication. founder of Aristocraft, which he set up and ran with his son Faizel in response to the growing inability of local manufacturers to compete successfully with Far Eastern imports. Although Sattar had been ill for some time, it was understood that he was making Subscribe, connect significant progress, so his sudden relapse and death was a tremendous shock to his family and many friends. The industry will be the poorer for his passing. HGR will prepare and FAX 11 issues for publish a fuller and more comprehensive obituary on Sattar Motani in the October issue. your details to R264-99 011 447 9838

Make cheques payable to email Home Goods Retailer and post to PO Box 41632, [email protected] Craighall, 2024 Made for the South African home. Right here, at home.

At Calgan, we pride ourselves in knowing value most is that our furniture is made on our South African customers better than South African soil. There is nothing quite like anyone else and that’s because we are one the South African spirit that proudly flows of them. Yes, the quality of our furniture through each one of our products. And it is exceeds international standards and yes, we this spirit that makes a Calgan suite truly feel offer the best price out there, but what we like home.

Handmade in South Africa Newsline

South Africa improves its global competitiveness

South Africa has fared remarkably well in Report’s narrative, Matola remarks that the most recent World Economic Forum’s this is highly indicative of trust in South Global Competitiveness Index. Africa at a time when it is returning only First released in 1979 the annual slowly in many other parts of the world. Global Competitiveness Report has “These combined attributes make South evolved into the prime authority on Africa the most competitive economy in relative competitiveness among most the region.” of the world’s nations. Respondent In line with the improvement in South numbers have grown over the years, Africa’s overall ranking, its absolute score with the 2011-2012 report covering 142 remained at 4.3 (on a scale of one to countries and some 14 000 respondents. seven). After slipping nine places last year South Africa’s 50th overall ranking – from 45 to 54 – South Africa’s overall is sub-Saharan Africa’s highest. The ranking recovered to 50 in 2011-2012, country’s 54th position in 2010-11 was thanks mainly to impressive gains in not high enough to earn it the top accountability of private institutions, continental accolade because of Tunisia’s strength of investor protection and 34th place. However, owing to that technological readiness. country’s political upheaval it has slipped “Since these factors are categorised back to 40th. South Africa is second only by the World Economic Forum as to China among the BRICS economies. Miller Matola – the long-term outlook for sustainability issues, their superior “We could have fared considerably South Africa is highly positive. ratings are indicative of a highly positive better had we not lost further ground long-term outlook for the South African in the categories in which we scored competitiveness in South Africa is economy,” observes International poorly last year – labour policies, health improving at a pace ahead of that Marketing Council CEO Miller Matola. The and education,” says Matola. “We need of many other countries. The World International Marketing Council of South to improve our rankings in these criteria Economic Forum derives about 60 per Africa was established in August 2002 if we are to continuously move up the cent of its score values from actual to help create a positive and compelling rankings. market data and 40 per cent from brand image for South Africa. “The results are an indication perception. That South Africa has scored Referring to the World Economic that the reality and perception of well on both counts is both highly gratifying and encouraging. “Of importance, too, is our third ranking for protection of minority shareholders’ interests,” Matola continues. “South Africa’s strong performance in the financial market and corporate governance dimensions is an indication that the country is deemed a safe destination for business and investment. This is a positioning the country will have to work hard to maintain amid florid debates about open market policies.” South African Institute of Chartered Accountants senior executive Ewald Müller says that these standings further enhance the country’s competitiveness in attracting foreign direct investment. “Given a clear account based on international standards, backed by strong regulation and robust corporate governance allows investors open and easy access to assessing the risks and rewards associated with corporate South Africa.”

4 Home Goods Retailer – September 2011

Newsline

Kronotex appoints Aluvert as wholesaler in South Africa

Kronotex, a member of the Swiss Krono Group and manufacturer of high-quality laminate flooring in Europe, has appointed Aluvert as wholesaler of its German- manufactured laminate flooring products in South Africa. “Aluvert is renowned for its wide distribution footprint in South Africa and offers Kronotex the opportunity to reach markets and consumers who have been beyond our reach in the past,” says Kronotex South Africa key accounts manager Alan Calder.” As the largest supplier of blinds in South Africa, Aluvert will distribute Kronotex products through its current distribution base and to flooring distributors and fitters. “The partnership allows us to distribute one of the world’s top laminate brands,” says Aluvert managing director Ian Meltzer. Kronotex is well-known for its superior laminates and wide choice of designs and colours, while Aluvert specialises in the production and distribution of top quality made-to-measure blinds and components, and supplies laminate flooring through its Floorquip division. Kronotex products are manufactured in Germany to exacting European Standards and Aluvert will be importing directly from the Kronotex factory in Heiligengrabe, Germany. The extensive range of Kronotex Aluvert will distribute Kronotex products through its current distribution base and to flooring products will be available from Aluvert. distributors and fitters.

HP partners with Dion Wired to open store-in-store

HP has opened a store-in-store (SiS) of technology goods and products to The Beat Audio feature is a product inside the Dion Wired in Woodmead, one where customers prefer to engage of the collaboration between Jimmy Johannesburg, where most of its new face-to-face with technology before they Levine and Dr Dre, who created a unique laptops equipped with Beat Audio are put their money on the counter,” HP SA and refined sound as originally recorded being sold. PSG country manager Thibault Dousson in the studio. The Beat Audio feature "Dion Wired, which positions itself as explains. “The decision to select Dion includes fine-tuned audio optimisation a destination store, was chosen because Wired as HP's SiS partner is a result of technology, amazing crystal clear sound this type of experience matches their it being one of the country's premier and an amplified sound experience with offering," says HP SA marketing manager consumer electronics and appliances an audio console equalizer. for personal systems group (PSG) Terina stores.” “Despite the unique feature giving our Pillai. "We have the best laptops, fitted company an edge, it will be up to the “The SiS concept embraces the with Beat Audio, which offer sound consumers to compare between what notion that consumer buying habits are as the original artist intended it," Pillai they get from HP and its rivals,” Pillai changing from internet-based purchases continues. adds.

6 Home Goods Retailer – September 2011 Newsline

Tedelex acquires distribution company

Tedelex Trading, part of the Amalgamated Appliances stable, has acquired the consumer electronics distribution agency Spectrum Multimedia for an undisclosed sum. A subsidiary of Technogroup, Spectrum Media manages the supply and sales of nine multinational and global brands in the consumer electronics and home entertainment sector, including TDK, One Touch, XoniX, Case Logic, Sentry and Bell Phones. Tedelex managing director Des Oliver says Spectrum Media is the ideal complement to Tedelex’s existing product range. “We have been looking to acquire new brands that are aligned to our offering for some time now and Spectrum Media was the perfect fit. “I was involved with TDK during the eighties and nineties so this is like a homecoming for me,” he adds on a personal note. Spectrum Media general manager Ockert van Niekerk, Technogroup chief executive Mike Technogroup CEO Mike Braude is Braude, Tedelex chief financial officer Bruce Drummond and managing director Des Oliver at equally excited. “The deal will enhance the signing ceremony of Tedelex’s acquisition of Spectrum Media. opportunities and growth potential for the company dramatically. Spectrum Braude, who has been with new chapter in my life.” Media’s brands and principals will Technogroup since its inception 15 years Spectrum Media general manager benefit significantly from integration ago, says the deal will enable him to Ockert van Niekerk will join the into the Tedelex stable, which is a move into semi-retirement. “While I am Tedelex staff and will operate from large, well resourced and successfully saddened to be exiting a full and active the company’s offices in Fourways, managed company.” business life, I am eager to embrace a Johannesburg.

First new-look Hi-Fi Corp opens in Centurion

Hi-Fi Corp has opened its first earth and approachable brand,” explains that bridges the gap between the two.” new-look store reflecting marketing executive Neil McLean. “This "We're moving beyond a purely price- its rebranding in sentiment is also carried through to the based value proposition to offer customers Centurion. new logo. We didn't completely reinvent a more informative, valuable and relevant After 18 years it; we simply evolved the identity to shopping experience,” McLean continues. as one of South ensure it could live in a high-street brand “We aim to be South Africa's one-stop Africa's leading environment. shop for electronic and electrical goods budget-beaters in audio "Added to that we've developed a with the widest range of products available and visual products, the new brand promise, 'switched on', which at everyday low prices, complemented company has shortened its name from demonstrates our commitment to talk by knowledgeable 'switched on' staff that Hi-Fi Corporation to Hi-Fi Corp, evolved the to our customers in a language they can help our customers make informed existing logo to mirror the new focus, and understand, remain relevant and up-to- purchasing decisions. Simply, it's tech adopted a new brand promise. date and instill a sense of confidence in shopping made easy." "We were most commonly referred to as our customers so they don't feel we're Over time all Hi-Fi Corp stores will Hi-Fi Corp by our customers and staff, so ripping them off or wasting their time. reflect the rebrand, with a new in- it made sense to shorten the name, which It means we understand our customers' store look-and-feel to support the new also more accurately reflects our down-to- needs and our products, and offer a service positioning.

Home Goods Retailer – September 2011 7 Newsline

Retail confidence still restrained, survey reveals

The percentage of retailers reporting that they are satisfied with prevailing business conditions increased by only one point to 48 during the third quarter, after slumping from 58 to 47 during Q2, this despite the results from the latest Bureau for Economic Research (BER)/ Ernst & Young Retail survey that suggest that retail sales growth remained solid during the third quarter of 2011 and that the overall profitability of retailers improved. According to Ernst & Young retail and consumer products sector leader Derek Engelbrecht, relatively subdued confidence levels suggest that retailers are concerned about the outlook for retail sales during the fourth quarter of Furniture retailers are managing to hold their own in a tough sales environment. 2011 and beyond. Nevertheless, retailers remain substantially more optimistic higher compared to the impressive input prices in the non-durable goods about prevailing business conditions volumes recorded during the 2010 category are still increasing at a compared to wholesalers, manufacturers Soccer World Cup months. Furthermore, substantially higher rate compared to and building contractors – the BER's semi-durable goods retailers have also selling prices, and hence profitability survey showed that less than 40 per been able to increases their selling remains under pressure. cent of respondents in these sectors prices. "While rising food prices should were satisfied with prevailing business bolster turnover growth, the slow conditions during the third quarter of pace of job creation in South Africa, 2011. “Retailers in furniture and coupled with lower real wage increases household appliances are able compared to last year, will in all Furniture and appliances remain to sustain high volume growth likelihood weigh on non-durable goods strong sales volumes during the months ahead,” In the durable goods category, sales by lowering their selling prices says Engelbrecht. of furniture and household appliances and improving aff ordability” remained strong during 2011 Q3, Future still slow but hardware, paint and glass sales According to Statistics South Africa, the contracted. "The poor performance of "While rising wages and high cotton growth in retail sales volumes eased hardware sales volumes correlates with and other commodity prices have from 5.7 per cent year-on-year during the slump in the domestic property also led to a substantial increase in 2011 Q1 to 4.1 per cent year-on-year market and the fact that the building purchasing prices, the combination of during 2011 Q2. While the results from and construction industry is still in the strong volume growth and higher selling the latest BER/Ernst & Young retail survey doldrums," says Engelbrecht. “On the prices saw a significant improvement in suggest that sales growth still remained other hand, it appears as though retailers the profitability levels of semi-durable sturdy during 2011 Q3, most retailers in furniture and household appliances goods retailers," says Engelbrecht. report that business conditions have are able to sustain high volume growth The BER's index for the overall started to deteriorate and therefore by lowering their selling prices and profitability of semi-durable goods expect volume growth to ease in improving affordability.” retailers is currently at a decade high. coming months. "Given the recent hikes in food and Semi-durable goods see high volume Profitability under pressure in non- fuel prices, coupled with lower real wage growth durable goods increases, as well as due to the high base Retailers in semi-durable goods (textiles, Retailers in non-durable goods (food, created by the strong growth in retail clothing and footwear) saw the highest beverages, tobacco, cosmetics and sales during 2010, retail volume growth volume growth during 2011 Q3. Boosted pharmaceuticals) also reported higher is expected to slow further over the by very low interest rates and an uptick sales volumes compared to 2010 Q3, next six months,” Engelbrecht predicts. in retail store credit growth, the vast but volume growth in this category “However, rising food and clothing majority of semi-durable goods retailers remained lower compared to that prices in particular should underpin reported that sales volumes were even of semi-durable goods. In addition, turnover growth in the retail sector."

8 Home Goods Retailer – September 2011 Newsline

Mobile shopping app set to shake up the retail sector

A new mobile shopping app a major evolution for DigiPoS, from point of sale (POS) solution which has historically specialised provider DigiPoS “will do for retail in point of sale hardware and what the ATM did for banking,” software. says SA general manager Dione Le “We’ve recognised that the Roux. point of sale is moving away Le Roux says the MobileShopper from the till,” says Le Roux. app, recently launched to “If customers want the point consumers in the UK and now of sale to be on their mobile available for demo in South Africa, phone, we need to make that is a radical departure from the happen. current approach. "Stores can still control “At the moment, retailers are security in specialised packing mostly limiting their mobile and detagging areas, but these presence to an optimised version of benefits in terms of increased turnover can be made a lot more pleasant for the their website,” he says. and customer loyalty can be immense. customer than the old queue for the till.” “But if the customer is in store and “If your customer checks in to your Importantly, notes Le Roux, the the product they want is out of stock, mobile app as they enter the store, customer is in control of the app. your marketing is only going to frustrate you can offer them vouchers or other “This is a 100 per cent opt-in channel,” them. What’s really useful is to let the deals based on their personal shopping he says. customer use their mobile to check the history,” he says. “It enables relevant, tailored and stock levels in your other stores, then “Likewise, if they’re scanning every timely personal marketing via a medium phone to reserve the item.” item that goes into their basket, you which is always on, always available and Allowing customer access to retail can alert them to specials they might has a built-in purchase mechanism. backend systems may seem a daunting otherwise miss, at exactly the right time.” "It makes for highly measurable return prospect at first, says Le Roux, but the The move into mobile apps marks on investment.”

Epson wins prestigious award from EISA

Global digital imaging specialist Epson The Epson Stylus Photo R3000 is an colour LCD. has won the European Printer 2011-2012 A3+ photo printer that makes professional The high-capacity, 25.9ml ink cartridges award for its Epson Stylus Photo R3000 quality output accessible, with its allow medium print runs to be completed from the European Imaging and Sound convenient high capacity inks, perfect for while optimising cost per page. Association (EISA). medium print runs. The EISA panel was impressed with A front-loading fine art paper feed the accessibility of the printer as well makes insertion easier, reducing the as the high-quality, low-cost prints it likelihood of misfeeding and reducing produces. “This is an ideal printer for both the need for space behind the printer. professional photographers and advanced Viewing media feeding amateurs,” the panel said. instructions and checking Epson product manager Marc Boehmer ink levels is simple says: “The Epson Stylus Photo R3000 was with the 2.5-inch launched after listening to customers’ feedback, and incorporated features such as high capacity ink cartridges and improved fine art paper feed as requested. “This award is testimony to our success and expertise in producing high-quality professional products.”

The award-winning Epson Stylus Photo R3000.

Home Goods Retailer – September 2011 9 Newsline

Wintec Solutions acquires distribution rights for three new brands

Johannesburg-based Wintec Solutions Solutions has provided Southern African reflected in the cheerful and eclectic has added three new brands to its territories with revolutionary technology range of colours, prints and styles. The distribution portfolio, namely Joby, and unrivalled service delivery since our accessories add a refreshing accent to Skech and Wowee. inception in 2007,” says general manager the technology that is essential to our “Although we're one of the younger Nina Moten. “We are rapidly becoming day-to-day lives.” distribution companies in a leading distributor in Southern The WOWee ONE is a travel speaker South Africa, Africa, with 2011 forecast as our most that turns any surface into a bass Wintec evolutionary period to date. speaker. It works with mp3s, iPods and “Joby is a range of well-designed mobile phones. “In fact, anything with products, which inspire the creative a 3.5mm headphone socket, even a and active lifestyle,” she continues. laptop or PC,” Moten adds. “Gorillamobile products unlock the The WOWee ONE CLASSIC is a full potential of the feature-rich compact portable speaker unit that iPhone and iPad devices with provides a full range frequency sleek protection, ergonomic response. “It is intended for use as both positioning and improved a fixed and portable solution for all iPod, productivity solutions, while iPad, mp3, mp4, mobile phone and Gorillatorch hands-free lights computer applications,” Moten explains. are powered by brilliant The WOWee ONE CLASSIC is available LEDs to tackle any task, in four different styles: Polar White, from emergency roadside Classic Black, Sophisticated Chrome and situations, or middle-of-a- Pretty Pink. party sink repair, to DIY Also available from Wintec Solutions projects or an outdoor is its flagship brand, Powertraveller, adventure.” with its line-up of high-end innovative The Skech range portable chargers, Sox, a range of comprises tablet and funky, colourful, and elegant covers smart phone covers for personal electronics, Alcosense that Moten says are portable breathalysers and SKROSS The Joby GorillaMobile Ori for the iPad2 is now on the cutting edge travel adaptors that adapt to over 150 distributed by Wintec Solutions. of fashion and function. “This is countries worldwide.

Hisense drives sales with a z-card

Consumer electronic company Hisense marketing executive Chris Cilliers. "We South Africa has contracted PocketMedia use the z-card as an educational tool Solutions to produce a unique, custom- for our brand and make use of it on a sized (204mm by 111mm) z-card to point-of-sale level, as well as distributing provide consumers with the specifications it in stores and at various consumer and features for the company’s large range electronics expos." of LCD and LED televisions. The card also drives consumers to Within the eye-catching cover Hisense South Africa’s website and the z-card includes a panel-by-panel Facebook page for more information specifications guide and features about the company and its products. legend, which enables consumers to “The numerous web driving easilly read up on all that each model applications enable Hisense to use has to offer. new and emerging digital technology “We wanted to accommodate all the to share the latest updates on their essential information in an easy-to-read products and services,” says PocketMedia layout," explains Hisense South Africa managing director John Davis.

10 Home Goods Retailer – September 2011 Newsline

Unilever named SA's best large-sized and FMCG employer

Unilever South Africa has been ranked number one Large-sized Employer and number one FMCG Employer at the Corporate Research Foundation South Africa Best Employers Awards 2011. The company also ranked fourth on the Overall Best Employer. HR vice-president Antoinette Irvine received the award on behalf of the company at an awards function in Johannesburg. In 2010 Unilever was ranked fifth in the Large-sized Employer category and was placed eleventh in the overall Best Employer category. “People are at the heart of our business and we believe they are the reason for our success," says Irvine. "We are very proud to see that this is now being acknowledged externally as well. We have worked very hard to get here, and we will continue to do our best to improve our scores next year.” A total of 69 organisations were accredited as Best Employers in 2011 – a 20 per cent increase from 2010. The certification index identifies choice employers through administrating the international HR policy and practice research survey, proprietary of the CRF Institute. The index is a result of research with findings independently audited by Grant Thornton South Africa. Organisations were rated in the following areas: organisation strategy, the HR function, communication, diversity management, corporate social responsibility, knowledge management, talent management and engagement, performance management and rewards and recognition.

Closed loop cash system attracts attention

New technologies showcased at the recent Retail Risk conference displayed the potential for developing closed loop cash recycling solutions, where cash can be securely collected, counted, sorted and redistributed on site without the need to transfer cash to banks. This circumvents the risk of transporting cash between financial institutions and commercial outlets and significantly protects retailers from the risk of cash in transit heists and ATM bombings. Global Payment Technologies sales executive Andries de Kock says the need for cash recycling solutions for retail centres attracted strong interest at the conference. "The market is changing and we are on the brink of a complete change in how cash flows in South Africa," he says, adding that the company is currently piloting a closed loop cash recycling solution at a shopping mall in Gauteng. "The project is delivering positive results and we plan to launch this solution to the market shortly. "Closed loop cash recycling solutions have the additional benefit of reducing the need for armed security personnel in the vicinity of retail premises and it means fewer weapons in a shopping precinct, de Kock continues. "These solutions also result in efficiencies which have a measurable return on investment with a positive impact on the bottom line. Furthermore, they can be applied across the entire retail sector, from individual stores, to malls and shopping centres, or any other institutions that handle cash.

Home Goods Retailer – September 2011 11 Newsline

400th Clicks store opens in KZN

Health and beauty retail chain Clicks has developed a unique formula for has opened its 400th store in the Tiffany southern Africa that incorporates the best Shopping Centre in Umhlali on the of pharmacy, health and beauty retail KwaZulu-Natal North Coast – 43 years internationally. after the first one opened in the centre of “Every town and suburb could Cape Town. eventually have a Clicks store, and with Now Clicks is aiming to reach 500 each one creating 15 to 20 jobs, we are stores in the next three to five years, with an employer that is touching the lives of between 20 and 30 planned for 2012. It ordinary South Africans.” he adds. also has stores in Namibia, Botswana and Already the chain employs 6500 people, Swaziland. and mostly promotes management from Clicks managing director Michael within – training and developing staff Harvey says the long-term success of the for senior management positions, in retailer shows it is a strong brand with procurement and for its stores. good people, which offered value for “There is a lot of scope for growth and money to its customers in health, home progression within the company,” says and beauty. “The format of Clicks touches Harvey. on the core of the way we live now. We In store, Clicks works hard to meet its Cutting the cake to celebrate the opening sell health and beauty, give advice on customers’ needs and expectations. Even of the 400th Clicks store are store manager healthcare and provide medicines.” the layout of stores is designed with the Chantal Govender and managing director Harvey says the Clicks team constantly customer in mind, enabling them to easily Michael Harvey. researches international trends and find what they want while shopping.

Massmart results indicate possible improved consumer environment

Despite an uncertain trading environment Both Massbuild and Massdiscounters, and one of the most eventful years in its which are largely exposed to general history, Massmart has delivered a robust merchandise, benefited from the low operational performance, underpinned by interest rate environment. strong sales growth, market share gains, Massdiscounters, which includes Game a healthy increase in operating profit and and DionWired, reported a 9.6 per cent effective cost controls. increase in total sales, despite product Additionally, the group has successfully deflation of -7.3 per cent and an 18.4 per settled most of its collective wage cent increase in trading profit. Game Africa’s agreements for the 2012 financial year. improved sales performance (in local currency terms) reflects a tentative recovery Financial review in African economies. The group reported an 11.6 per cent Commenting on the group’s prospects increase in sales as well as a 10.3 per cent post the Walmart transaction, Pattison says increase in trading profit to R2 059 million he expects the benefits of the relationship and a 10 per cent increase in headline to only show through in the group’s 2013 earnings, excluding transaction costs. Grant Pattison – the economy has been financials and beyond. Operating profits declined by 13.7 per cent difficult. “The process of integration with Walmart and headline earnings decreased by 22.5 per has just begun, but there is certainly plenty cent. made interpretation of recent internal and of medium- and long-term opportunity on Massmart CEO Grant Pattison is satisfied: external data difficult. the African continent to save people money “We are pleased to report solid results “We believe we will only have a firm view so they can live better. achieved in a difficult environment,” he says. following the first three months’ trading of “Despite the difficult and uncertain socio- “The economy has been difficult to read for this new 2012 financial year,” he continues. political and economic environments, both the past few months – the different Easter “Early indications, however, are that the locally and globally, we believe we have trading periods in 2010 and 2011 and the consumer environment is perhaps slightly the plans in place to deliver another solid base effect of the 2010 FIFA World Cup have better than we may have thought.” performance in the year to June 2012.”

12 Home Goods Retailer – September 2011 Newsline International

Sony, Toshiba, Hitachi agree on small LCD business merger

TOKYO – Japan's Sony, Toshiba and Hitachi are to merge their liquid crystal display (LCD) operations using $2.6 billion of government-backed funds to fend off growing competition from rivals in South Korea and Taiwan. The merged entity will be the world's largest maker of small panels used in smartphones and tablet PCs, leapfrogging leaders Sharp Corp of Japan and Samsung Electronics of South Korea, and keeping at bay the likes of Taiwan's AU Optronics. Sony, Toshiba and Hitachi were all making losses on small panels until last year so the merger will allow them to focus on their main operations. However, the 90 per cent government- INCJ president Kimikazu Nomi, Toshiba president Norio Sasaki, Hitachi president Hiroaki owned fund, set up in 2009 to promote Nakanishi and Sony executive deputy president Hiroshi Yoshioka shake hands on their innovation in Japanese industry, could agreement to integrate their businesses on small and medium-sized LCD panels for come under fire for using public money smartphones and tablet computers. to prop up a volatile business in its biggest investment to date. in the current financial year. They had firms to take the lead. hesitated about investing in a new line "The decision reflects a growing sense to compete against Sharp, which is due of crisis in Japan in light of its falling “The decision refl ects to receive a $1 billion investment from market share in the global chip and Apple Inc, or South Korean rivals LG display markets," says a South Korean a growing sense of crisis Display and Samsung Mobile Display, government official, who declined to be in Japan” which have supply agreements with key named. clients. Sony has been weighed down by chronic losses in its TVs, Toshiba is The Innovation Network Corp of Japan speeding up plans to shrink its chip “Analysts predict the (INCJ) will invest about $2.6 billion in business, while Hitachi has been looking the merged unit for a 70 per cent stake, to distance itself from the volatile panel industry will be while the three firms will each take a ten business to focus on infrastructure over-supplied next year” per cent stake. They aim to complete operations. the merger by 2012 and list the merged Increasing demand from smartphone entity, to be called Japan Display, by the and tablet PC makers has prompted financial year ending March 2016. panel makers to shift their focus to The INCJ will lead the recruitment A shakeup has been long expected smaller screens. DisplaySearch says of new executives to run the company, because harsh competition and weighted average prices for mobile while external directors will be drawn advances in technology require phone panels were 30 per cent higher in from Sony, Toshiba, Hitachi and INCJ. producers to make regular large-scale the first quarter of 2011 compared with How the three firms, which use two investment. The three firms together a year earlier. However, analysts predict different types of display technology, controlled 21.5 per cent of the market the shift means the industry will be over- will merge operations is unclear. The for small and medium-sized displays supplied next year. announcement did not include details of last year, larger than Sharp with 14.8 how they intended to deal with business per cent, or Samsung Mobile with 11.9 Restructuring overlaps either. per cent, research firm DisplaySearch The INCJ is supervised by Japan's trade The new display company will focus estimates. ministry, which had been criticised for on developing next-generation displays, While all three had been loss-making not supporting Japan's chip and display including thinner organic light-emitting in small panels until last year, they industries in the early 1990s, a failure diode displays with higher resolution. were expected to pull into the black critics say allowed US and South Korean Source: Reuters

Home Goods Retailer – September 2011 13 Newsline International

HP dumps tablets, phones, computers and CEO

NEW YORK – Eleven months after he joined California-based Hewlett-Packard, the company has ousted CEO Leo Apotheker in favour of Meg Whitman, who was instrumental in building EBay into the world’s largest Internet auctioneer, with a market value of about $40 billion. Whitman joined HP’s board in January after she failed to become California’s governor last year. Additionally, Ray Lane has moved from non-executive chairman to executive chairman of the board of directors. "We are fortunate to have someone of Meg Whitman's caliber and experience Leo Apotheker – out. Meg Whitman – in. step up to lead HP," says Lane. "We are at a critical moment and we need renewed largest manufacturer of personal Systems Group (PSG), which makes leadership to successfully implement computers will discontinue its personal desktop, laptop and other personal our strategy and take advantage of the computer business, TouchPad tablet computers. market opportunities ahead. Meg is computer and webOS smartphones. HP's low-margin PC business has a technology visionary with a proven "HP will continue to explore options to been the subject of separation rumors track record of execution. She is a strong optimise the value of webOS software for months and HP shares have slumped communicator who is customer focused going forward," the company said in a this year amid investor concerns that the with deep leadership capabilities. statement. company is being overtaken by younger, Furthermore, as a member of HP's board It also acquired UK enterprise software nimbler rivals. of directors for the past eight months, firm Autonomy, which makes software Whitman says she plans to stick by the Meg has a solid understanding of our for companies to search and manage strategies set in motion by Apotheker, products and markets." huge databases, in a $10 billion. believing that investors prefer steady The board shake-up comes after The company says it is looking at leadership to another unsettling change Apotheker announced that the world’s "strategic alternatives" for its Personal of course.

Samsung, Apple tablet row heats up in Australia

SYDNEY: Electronics giant Samsung says ensure that consumers have a wider and tablet computers in the US, with it will launch a counter claim against US selection of innovative products to both sides filing infringement claims firm Apple in Australia as part of a dispute choose from.” against the other. between the rival companies over tablet Apple is seeking to permanently Legal action is also ongoing in computers. ban the sale or promotion of the latest Germany and South Korea. Samsung has The American company launched legal Galaxy, which will compete with its iPad, so far released its touchscreen Galaxy Tab action against South Korea's Samsung in Australia, saying it infringes Apple 10.1, which it says is the world's thinnest Electronics in Sydney earlier this month, patents. Samsung disputes this. tablet at just 8.6 millimetres, in at least accusing it of infringing its patents with It says it intends to file a claim against five overseas countries, including the US. its Galaxy Tab 10.1 tablet. Apple Australia and Apple Inc "regarding "Samsung will continue to pursue Samsung says it had agreed to the invalidity of the patents previously all possible measures, including delay the product's launch in Australia asserted by Apple and also a cross claim legal action to defend its intellectual pending a decision by the Federal Court against Apple regarding violation of property rights and ensure its innovative in September, but would defend the patents held by Samsung by selling its products remain available to consumers case. "Samsung will continue to actively iPhones and iPads". throughout the world," the company defend its right to launch the Samsung The companies are already embroiled says. Galaxy Tab 10.1 in Australia in order to in a patent dispute over smartphones Source: AFP

14 Home Goods Retailer – September 2011 Newsline International

Samsung receives top rankings in sustainability index review

Samsung Electronics has been Electronics executive vice president more than 1150 locations in North named the world’s most sustainable and Partner Collaboration Center America. technology company in the 2011 head Byungsuk Choi. “This result is a In the economic dimension, Samsung Dow Jones Sustainability Index (DJSI) reflection of Samsung’s belief that we received the technology super-sector’s annual review, reflecting its industry- can deliver positive value by protecting top assessment for product quality leading performance across a range of the environment and contributing to and recall management, risk and crisis economic, environmental and social communities in which we operate, while management, as well as customer criteria. generating economic performance.” relationship management. Samsung received a total score Recognising Samsung’s enterprise- Samsung was first listed in the DJSI of 86, the highest sustainability wide eco-management initiatives, the in September 2009 and received a gold assessment of 52 companies listed in DJSI review particularly highlighted the class listing in the semi-conductors the technology super-sector, which company’s leadership in climate strategy, sector in September 2010, indicating its combines five sectors, including semi- environmental reporting and product total score was within five per cent of conductors, communication technology, stewardship. As of the first half of 2011, the sector leader. computer hardware and electronic Samsung has reduced its greenhouse Launched in 1999, the DJSI is a widely office equipment. The company gas emissions at its manufacturing accepted global assessment of the led the technology super-sector in facilities by 38 per cent on a sales- sustainability performance of the world’s the environmental and economic normalised basis against 2008 levels, leading companies. Selection into the dimensions – two of the three key putting it on-track to exceed its target DJSI World is based on a comprehensive sustainability areas assessed. of a 50 per cent reduction by 2013. The analysis of economic, environmental “Samsung is delighted that our company also operates recycling and and social performance by sustainable sustainability efforts have been take-back programs in more than 60 asset management (SAM), an investment recognised in the Dow Jones countries worldwide, with its Samsung specialist group focused exclusively on Sustainability Index,” says Samsung recycling direct program now spanning sustainability investment strategies.

Electrolux acquires Chilean appliance company CTI

As part of its strategy to grow in Somela, also listed on the Santiago strengths of Electrolux and CTI emerging markets, Electrolux will Stock Exchange, for CLP 325 per share, and provides significant growth acquire Sigdo Koppers' controlling stake with CTI committed to tender its 78.5 opportunities that would be difficult to in Compañia Tecno Industrial (CTI). The per cent stake. CTI's net income from achieve by either company individually," acquisition makes Electrolux the largest the sale of its shares in Somela will be says Electrolux president and CEO Keith supplier of appliances in Chile. distributed to its shareholders through McLoughlin. “Together we will generate Sigdo Koppers and certain associated a pre-closing dividend of CLP 4.39 per significant revenue synergies and cost parties have agreed to sell their share. synergies relating to purchasing and controlling interest in CTI to Electrolux, In Chile, CTI manufactures production. Latin America is important corresponding to approximately 64 per refrigerators, stoves, washing machines to our growth plans and we believe cent of the outstanding shares. CTI is and heaters, sold under the brands there will be a successful path ahead for listed on the Santiago Stock Exchange. Fensa and Mademsa, and is the leading the combined forces of Electrolux and Under the terms of the agreement, manufacturer with a volume market CTI." Electrolux will commence a cash tender share of 36 per cent. Through its wholly "Electrolux has very strong roots offer to acquire 100 per cent of the owned subsidiary Frimetal, it also holds in Latin America, and we have been outstanding shares in CTI at a price a leading position in Argentina with partners with CTI in certain Latin of 34.87 Chilean Pesos per share with the GAFA brand. Somela is the largest American markets for the past 15 Sigdo Koppers and certain associated supplier of small domestic appliances in years," says Electrolux president parties committed to tender their 64 per Chile. major appliances Latin America Ruy cent stake. CTI has 1 200 employees, two Hirschheimer. “We are committed to Electrolux will also commence a manufacturing sites in Chile and one the strong brands of CTI, which are cash tender offer to acquire all of the site in Argentina. aimed at segments of the market that outstanding shares of CTI's subsidiary, "This acquisition builds on the complement those of Electrolux.”

Home Goods Retailer – September 2011 15 Special Report

12 countries • 12 000km • 62 days Philips journeys across access to mother-child

Over 62 days between May and July Philips South Africa travelled to 12 countries from Cape Town to Cairo – a journey of 12 000km – raising awareness about how mother and child healthcare and lighting solutions can improve the quality of life across the continent.

This is Philips’ second Africa road these goals in sub-Saharan Africa alone of care. “There is a major training show, geared to creating dialogue and will equate to the saving of four million requirement across the continent and an cooperation between governments, lives a year.” urgent need for continuous education local healthcare workforces, non- In each country the Philips team to advance and maintain clinical governmental organisations, visited they engaged with customers, competencies,” says van Dongen. “We foundations, healthcare professional governments, NGOs and media to promote the benefits of breastfeeding associations and research institutions to discuss experiences and insights for but also provide alternative solutions for help women, mothers, newborn babies addressing key challenges facing mothers who are unable to breastfeed. and children obtain better access to Africa, “specifically what Philips can do We also educate mothers to increase healthcare. to develop products to help support awareness of hygiene routine. Bacterial “Mothers, newborn babies and these initiatives,” says van Dongen. diarrhea is one of the major causes children represent the well-being of a of infant mortality in Africa, but with society and its potential for the future proper sterilization routines of feeding and their health needs cannot be left equipment the risk of infection in babies unmet without harming the whole “The more we dialogue can be significantly reduced. of society,” says Philips senior director the better we are able and general manager JJ van Dongen. Solar lighting solutions for healthier “Even in the 21st century, we still allow to help address and and safer environment eight million children and close to half help resolve challenges” Philips also introduced new solar a million mothers around the world powered lighting solutions aimed at to die each year from preventable providing a healthier and safer home complications related to pregnancy and environment. child birth. Around 70 per cent of these “Everywhere we went we were struck “An estimated 560 million Africans deaths is due to conditions that could by how important health care is to the still live without electricity,” says van be prevented or treated with access to respective government, but its efforts Dongen, “and in some areas women simple, affordable interventions. are severely hampered by an acute lack about to give birth are requested to “With just four years left to achieve of facilities and infrastructure. The more bring a candle with them to the hospital the United Nations’ 2015 Millennium we dialogue with them the better we because there is no electricity. Development Goals (MDGs), we at will be able to address and help resolve "The road show helps us to show Philips are working hard to intensify the challenges they face.” that solar lighting is a solution that can efforts to improve women’s and During the road show Philips change lives in Africa by making child children’s health so that goals four (child delivered customised training modules birth safer and thus help reduce the health) and five (maternal health) can on mother and child care in all key continent’s very high infant mortality be met; the successful achievement of markets to help improve standards rate.”

16 Home Goods Retailer – September 2011 Special Report

Africa to improve care, solar lighting

At the Johannesburg leg of the road show Marlon Burgess of Philips (right) signed a memorandum of understanding with Professor André Swart, executive dean of the Faculty of Health Sciences at the University of Johannesburg (left) to establish a mutually agreeable framework to Philips executive vice-president and global head of markets and innovation Dr Gottfried cooperatively address the healthcare skills Dutiné and senior director and general manager JJ van Dongen launch the Philips Cape shortage in South Africa. Town to Cairo tour.

Numerous highlights achieved along the way

Cape Town – Philips announces new solar powered lighting Kenya – Nairobi Hospital goes digital in perinatal care by solutions which can help improve the quality of life for families implementing Philips OB TraceVue, a perinatal information system living in areas without electricity. that ensures comprehensive coverage for maternal and fetal Botswana – Philips introduce the first MRI scanner in the public surveillance. sector Ethiopia – Philips commits to the installation of state-of-the- Mozambique – With local partner Tecnologia Hospitalar e art magnetic resonance imaging (MRI) technology in two of the Laboratorial (THL), Philips holds discussions with the Ministry of leading public hospitals in Addis Ababa. Health on upgrading the radiology department of the Maputo Nigeria – Philips promises to provide state-of-the-art CT scanners, Central Hospital to a digital environment. mammography and ultrasound systems in hospitals across the Tanzania – Philips commits to facilitate the training of future country. healthcare professionals. Egypt – Egyptian Ministry of Health and Population and Philips DRC – Philips partners with Prodimpex to build sustainable cooperate closely to raise awareness about the importance of early healthcare infrastructure. diagnosis of breast cancer.

Home Goods Retailer – September 2011 17 Talking Points

SA business not exempt from global financial crisis

South African businesses are not immune from the ill- fated doom and gloom affecting Europe and America. Its affects are more far-reaching than the banking crisis of 2008 and of course, the resultant credit crunch, which shook governments, business and consumer confidence.

18 Home Goods Retailer – September 2011 Talking Points

As fears mount in Europe of a double-dip recession amid a global meltdown, South Africa has to prepare itself for the knock-on domino effect, and apply even greater business prudence if it is to come out the other side intact. The Euro zone's and America's debt crisis has shaken the foundations of trust, business ethics and future global predictions for medium-term growth.

Undoubtedly, some businesses in Looking for safe havens up all for all businesses to get their own South Africa will weather the financial The construction industry, real estate, house in order to weather the storm," storm better than others, however, the consumer durables such as electronics, says Trifector Capital CEO Tim Marshall. uncertain shape of the global stock cars, luxury goods and the retail sector "With increasing uncertainty on what the markets, coupled with severe austerity are all expected to take a hit, as people market will do next and how the global measures, government and other tighten their belts in what many feel is an economy will react, it's a question of institutional intervention such as those uncertain future, over the next few years. bolting down the hatches and ensuring from Europe's Central Bank and the Investors will look to safe haven assets businesses have the correct procedures IMF, will have an impact that will be felt such as gold, Swiss Francs and bonds in place at the right time, to ensure their globally. - the risk element no longer being an longer term profitability and ultimately The unstable scenarios of the West option upon which they are prepared survival." have seen some gain and some loss. The to gamble. As such, they will look to The road to recovery is going to be a JSE has felt the pressures of investors businesses that have embarked on their bumpy and uneven one, with nothing selling stocks and shares mirroring the own solid risk limitation strategies, and in the short term guaranteed, owing to pattern across Europe, America and Asia will take a lot more convincing to part the considerable risks and uncertainties with billions being wiped of the value with their cash. globally. If inflation gathers pace, the of those stock markets in a matter of Governments of the West and in current financial crisis could be worsened days. On the other hand, people looking particular, the Euro Zone will have less further by a hike in interest rates, which to invest in secure commodities have in their coffers to help with overseas aid. will undoubtedly have considerable helped gold reach record prices per As such, aid programmes to developing consequences for businesses, the investor ounce, with other precious metals also and the consumer. seeing healthy gains such as silver and platinum, which is of course good news Survivability will depend on ability to for Southern Africa. However, even recent “The construction industry, manage resources growth in precious metals, such as gold, real estate, consumer durables While the UK has been applauded in could also carry a risk as an investment, and the retail sector are all some circles for getting its own debt as people look to hard cash and bonds in in order through acknowledging its these troubled times. expected to take a hit” debt burden and embarking on severe austerity measures and cuts in the public Tourism not the only casualty sector, its very success is dependent As people have little spare cash, other countries will be under extreme on what happens elsewhere, as the EU sectors will feel the pinch. Tourism, pressure as governments look closer president has already warned – the debt already accounting for just over eight per to home while the ceiling on spending crisis in Europe is spreading. Portugal, cent of South Africa's GDP and already takes effect. Places like Malawi and Ireland and Greece have already seen suffering a post World Cup downturn, will Mozambique will feel the pinch, and with hefty bailouts, but there isn't enough be squeezed further as people reassess that comes a host of social issues coupled money to bail out Spain or Italy in the holiday options and associated costs, with a possible influx of immigration same way. with many looking to holiday closer to from other countries in Southern Africa, America's debt trillions also has the home. South Africa's tourism industry will as people from neighbouring countries rest of the world feeling nervous, as have to adopt more aggressive pricing seek a perceived more prosperous light companies adapt to an ever-changing policies to make it competitive globally shining in South Africa. The knock-on new business climate which has the if it is just to maintain, let alone grow its effect here is also a dangerous one that potential to change the way we have market share of international visitors. could potentially create another kind understood business over the past three Tourism won't be the only casualty. of crisis for South Africa to deal with, as decades. With less money available, banks unemployment increases due to lack The survival of companies and indeed, struggling to make profits and lines of of available jobs in light of cut-backs in countries in their entirety, in the wake credit under severe pressure, there will be manpower, and boardroom attempts to of a new wave of business culture, will less available to invest overseas. Investors curtail diminishing profits. depend on their ability to manage their and shareholders have already started to own resources and business conduct, if instigate their own austerity measures, Economic climate 'volatile' they are to survive the global impact and which are now no longer the reserve of "The economic climate is volatile and instability of the financial crisis. governments. now more than ever, it's a serious wake- Source: Bizcommunity.com

Home Goods Retailer – September 2011 19 Kenwood Triblade.indd 1 8/14/11 4:48:22 PM Small Domestic Appliances

SDAs on upward trend in Europe

The European market for small domestic more money on the new appliances. appliances (SDA) has continued to stay on the growth path in the first six months of Czechs, Germans and Dutch like to buy the year. While western European markets online recorded a sales increase of five per cent in Both traditional retailers and online sales comparison to the previous year, eastern are contributing to the sales increase for European countries registered a staggering SDA. The share of online sales increased by increase of 25 per cent. For Europe as a three percentage points in both Western whole, this equates to growth of eight per and Eastern Europe, to 13 and eight per cent cent, reports GfK. respectively. Russia is the most important growth Europeans particularly like to purchase market in Europe, owing to its market high-value products such as kitchen size and the positive developments in machines, fully automatic coffee/espresso the first half of 2011. However, consumers machines, and robotic vacuum cleaners in Germany, France and the UK were over the internet. Among Western European consumers, online shopping is especially popular in Germany and the Netherlands, with 18 per cent and 19 per cent of sales “Russia is the most respectively attributable to online purchases. In Eastern Europe, internet shopping is most important growth market popular in the Czech Republic, where one in Europe” out of every five Euros was spent online.

Energy efficient vacuum cleaners more popular in the West also eager to spend on SDA products. In A closer look at individual product groups the first quarter in particular, the sector shows that vacuum cleaners continue to be reported business success and increases the driving force in the SDA sector and make in all European countries. Double-digit a significant contribution to its growth. sales growth was achieved in the Ukraine, Food preparation appliances, fully Poland, Russia and the Czech Republic, automatic coffee/espresso machines, which contributed to the upward trend of espresso pump portioned closed systems, the market as a whole. The economic crisis, water kettles, irons and electric toothbrushes which weakened sales of SDAs in 2009, have demonstrated similar performances. Coffee and espresso machines favored by appears to have been overcome. Two thirds of overall vacuum cleaner consumers sales in Europe continue to be generated When it comes to the daily cup of coffee, Which products are making the largest by cylinder vacuum cleaners. A large part fully automatic coffee/espresso machines contribution to this success? of growth in this segment is attributable and espresso pump portioned closed In the first half of the year, the sales increases to energy efficient appliances, though systems are currently the most successful, in Eastern Europe were primarily attributable consumers in Western Europe are more achieving double-digit growth. In contrast, to cylinder vacuum cleaners, water kettles, interested in these environmentally friendly sales of filter coffee and coffee pad machines food preparation appliances and steam products than those in the Eastern countries. have experienced slight declines. Last irons, as well as fully automatic coffee/ Some smaller segments are the most year’s downward trend for fully automatic espresso machines. In Western Europe, it is dynamic ones. coffee/espresso machines sales therefore principally sales of fully automatic coffee/ Wet and dry vacuum cleaners and seems to have been overcome. However, espresso machines, robotic vacuum cleaners, battery operated rechargeable handsticks 80 per cent of total sales in this segment food preparation appliances, electric recorded double-digit growth. The top in Western Europe are attributable to toothbrushes and espresso pump portioned performers were robotic vacuum cleaners, Germany. Consequently, the impact of closed systems which are responsible for which increased sales twofold and have increased purchasing by German consumers positive market developments. now attained a market share of almost five is important when analysing the overall There are two reasons for the growth per cent. At the moment, the popularity market. Sales also increased at a double- in both Western and Eastern Europe; of robots is extremely different around digit rate in Russia and Poland. consumers are purchasing a significantly Europe; in Southern Europe, especially Italy higher number of appliances than in the and Spain, there is a high demand for these previous year and they are also spending products. page 23 X

Home Goods Retailer – September 2011 21

Kenwood Triblade.indd 1 8/14/11 4:48:22 PM

Small Domestic Appliances

Small appliances hold their ground in local market

The small domestic only a small development over the same appliance (SDA) sector period last year, second-quarter (Q2) held onto its positive 2011 results demonstrate a positive ground after recording quarter over Q2 last year, increasing by single digit growth 3.4 per cent. in the first quarter of This small but steady development 2011, GfK reports. masked the sales unit performance of The company tracks the sales of this category; there were stronger unit Supporting the positive revenue consumer durables through monthly sales compared to revenue sales this trend for the category, the beverage retail audits done on model level. quarter. maker segment, which is composed This audit is carried out across all Signs of a slowdown in consumer predominantly of the kettles products, relevant channels of distribution. GfK spending have put pressure on market was the one of the key drivers, with a currently tracks and reports on over 60 promotions. 24 per cent growth in revenue over Q2 product categories within the consumer Strong promotional activity by 2010. electronics, domestic appliances, retailers as a counter measure has Vacuum cleaners and irons also telecoms, IT, DIY and gaming markets. resulted in a better-than-expected weighed in positively, tracking a volume performance relative to revenue, healthy 7.6 per cent and 5.1 per cent Slight growth over Q1 which was recorded at just under R380 respectively for the second quarter of While first-quarter (Q1) figures showed million for the quarter. 2011.

SodaStream joins in the fight against breast cancer

SodaStream International has partnered end breast cancer forever,” business with Susan G Komen for the Cure, development and partnerships vice- the global leader of the breast cancer president for Susan G. Komen for the movement. The company is introducing Cure Margo K Lucero. “When a woman a limited edition Pink Fizz soda maker dies of breast cancer every 69 seconds and will donate five per cent of the retail it’s imperative that we fund critical sales price for each product sold from 1 research, spread awareness and educate October 2011 through to 31 December women about breast health and breast 2012, in support of Komen for the Cure cancer.” and its promise to save lives and end The SodaStream Fizz home soda breast cancer forever. The Pink Fizz was maker is a countertop appliance unveiled earlier this year in Chicago at designed with a modern, artistic style for the International Home and Housewares a premium look, available in a variety of show. colors (white, black, green, metallic red “It is an honor to be associated with and shiny blue) and now in Pink, to fit Susan G Komen for the Cure, an inspiring any kitchen atmosphere. organisation that has accomplished so The Fizz features the interactive much in the fight against breast cancer,” Fizz Chip digital screen, a high-tech states Sodastream CEO Daniel Birnbaum. indicator designed to aid consumer “We are proud to have created a understanding of their individual charitable programme through the new carbonation technique and usage. SodaStream is using its new limited edition Pink Fizz soda maker, which will bring The patented Fizz Chip displays the Pink Fizz soda maker to support the fight the message of Komen for the Cure to amount of CO2 remaining in the against cancer. our consumers worldwide.” carbonator (which powers the home “SodaStream’s Pink Fizz offers soda maker) and also shows the strength and adds value to the user experience consumers a unique way to contribute of carbonation – or “fizz” – in the drink in a manner never achieved before in to and feel a part of the important (light, medium or strong). the home carbonation industry,” says work Komen is doing to save lives and “This new technology enhances Birnbaum.

Home Goods Retailer – September 2011 23 Small Domestic Appliances

Not all coffee makers are created equal

Not all cups of coffee are created equal, nozzle is just as simple to dismantle and according to Miele South Africa deputy clean under a tap – important when it managing director Brennan Menday, comes to cleaning the machine after a who believes that choosing the right cappuccino in the morning before setting coffee maker can make all the difference off to work. Refill indicators remind the user between an exceptional and a mediocre to replenish coffee beans and fresh water cuppa. before they run out.” “While any coffee maker is capable of brewing an ordinary cup of coffee, some Customisation are capable of brewing an outstanding cup. Alongside a choice of four beverage By extending its range to include its first sizes (espresso, coffee, double espresso countertop coffee maker, the new CM5000, and double coffee), users of the CM5000 Miele is targeting those consumers who own can programme parameters to suit their kitchens where space is at a premium.” individual needs, including the grind, the This space-saving countertop design is Miele's CM5000 countertop coffee maker. quantity of ground coffee per cup, the also ideal for individuals who are renting, he volume of coffee and the temperature,” notes, so they can take the machine with run, and by not having to replace the unit Menday explains. “The pre-brew function them when they move. every couple of years,” says Menday. “The infuses the water with depth of flow, The CM5000 countertop coffee maker CM5000 Countertop Coffee Maker has increasing the aroma and ensuring the comes in black or white to suit practically been designed, manufactured and tested perfect crema. Adjustment is intuitive, any kitchen colour palette. “It boasts a high to last for up to 20 years. The key system requiring the use of only the rotary selector quality, modern design with a sleek and components in the CM5000 – the percolator, and the ‘OK’ button. In addition to the timeless appeal,” says Menday, and has pump and heater unit – are identical to beans container, which boasts a capacity its stylish stainless-steel spout gives the those used in Miele’s well-established of 250g, a portion of pre-ground coffee can product the distinctive Miele touch.” CVA 5000 range. All these components be processed to meet individual tastes or guarantee first-class taste and have passed the need for a decaf coffee late at night for Good quality Miele's excruciating endurance tests with example.” Today’s consumers are catching on to the flying colours – no fewer than 50 000 cups The CM5000 is able to prepare both hot benefits of spending a little more initially of coffee or espresso are made on test milk and dry to wet milk froth to create a to buy top-end products that not only last appliances to furnish proof of durability, perfect cappuccino or latte macchiato. The a lot longer, but deliver a more premium reliability and longevity.” height-adjustable spout adapts just as easily experience and boosted functionality. Coffee makers should be both simple to small espresso cups as to a 13cm latte “They understand that even though and convenient to clean, Menday continues. glass. The electronic controls on the steam they might be laying out a bit more for the “The percolator from the CM5000 can be valve allow milk and milk froth quantities to initial purchase price, they will save money removed in a series of simple actions and be programmed both simply and precisely. on maintenance and services in the long cleaned under running water. The frothing The active heater even preheats cups.

Luxury pressure cooker defines simplicity

Swedish appliance maker Electrolux’s latest luxury lifestyle kitchen gadget, the AEG electric pressure cooker, is aesthetically beautiful yet functionally brilliant. The energy-saving pressure cooker has a six-litre capacity, non-stick cooking pot and cool-touch side handles. It also offers programming options such as low and high pressure, browning, simmer, sauté and automatic keep-warm settings. Additionally, the cooking pot and rack are dishwasher-safe. The AEG electric pressure cooker allows users to prepare juicy, delicious and nutritious meals in a fraction of the time it takes to dish up a home cooked meal. To preserve the vitamins and nutrients, the pressure cooker uses steam from the liquids of the ingredients to cook the food.

24 Home Goods Retailer – September 2011 Small Domestic Appliances

Best tasting chips without the oil

The Philips AirFryer is a revolution in home choosing them over any other. cooking that doesn’t require oil in the The AirFryer requires no heating up cooking process, allowing users to fry a time, so busy parents can quickly and variety of tasty meals quickly, simply and easily prepare a batch of the best tasting healthily. chips in just 12 minutes. Additionally, the The AirFryer’s secret is its patented revolutionary AirFryer overcomes the odor rapid air technology which combines that traditional frying creates. Because it fast-circulating hot air with a grill to uses hot air rather than oil to fry food, it create chips with up to 80 per cent less emits fewer vapours, while the integrated fat – without compromising on taste. The air filter diffuses any smells. Cleaning Philips AirFryer cooks a variety of foods up after cooking with the AirFryer is and snacks from delicious chips to chicken also simple, thanks to the removable, nuggets, veggies and even tempura. dishwasher-safe parts and non-stick To prove that the AirFryer comes top on surfaces. taste for even the most discerning food The AirFryer features a timer which lovers, Philips tested the chips made in lets users pre-set cooking times of up to With the Philips AirFryer, fried foods are the AirFryer in two countries that lay claim 30 minutes. Cooking can be interrupted healthy and delicious. to being home of the French fry – France at any time to check on progress, to and Belgium. When polled, two-thirds of ensure perfect results.The adjustable to prepare every part of a meal, the people preferred the crispy taste of the temperature control enables temperatures Philips AirFryer includes a food separator AirFryer chips over those from another of up to 200oC to be pre-set, and cooks accessory which allows multiple foods leading brand. French schoolchildren food with steady heat to ensure crisp and to be fried at once without mixing the also loved the taste of the AirFryer chips, even cooking. Making it even simpler flavours together.

SDAs on upward trend in Europe

W page 21 previous year. Russian consumers in particular, are switching to electrical shavers and trimmers, generating a rise in sales for Body care segment booming in Eastern the segment. Europe The body care segment, which includes French market still vibrant electric toothbrushes, hairdryers hairstyling The French SDA market remains one of appliances, epilators, men’s shavers, hair the most dynamic in the home appliances clippers and trimmers, recorded an increase sector. However, some trends, even if they of seven per cent for the first half of the year are still positive, showed a slight decrease in a year-on-year comparison. due to a rather disappointing Mother’s Day. Sales growth is significantly higher in After strong performances for the last Eastern Europe than Western European five years, the food preparation market is no countries, at almost 18 and five per cent longer the leading SDA sector. Coffeemakers respectively. (especially espresso machines), on the other The main growth drivers in this region are hand, were stimulated by new product the Russian and Ukrainian markets. Electric launches and advertisements. toothbrushes, hairstyling appliances, men’s Barbecues and ice cream makers also Overall, the non-food categories shavers and laser/IPL-based devices for hair witnessed positive growth rates due to the demonstrated sound performances. Home removal have been selling particularly well, pleasant weather, and the epilation market comfort products led the growth thanks although laser/IPL devices are primarily also benefited from the warm climate. to the strong sales of vacuum cleaners, available in Western Europe. Men’s shavers saw an increase during the especially robot and handstick models. The men’s shaver segment has spring season as a result of innovation and After a disappointing 2010, irons and maintained the upward trend of the increased promotion. steam generators are back on track.

Home Goods Retailer – September 2011 25 Product Showcase

Four new colours added to Van Dyck Diplomat range

For a carpet that won’t fail, look no that will complement with any décor the bedroom or any small, cosy space. further than the Diplomat range choices, the Diplomat range will grace Lagoon comes in navy with a bronze manufactured by Van Dyck, a patterned any market with style and elegance. diamond pattern, while Emerald cut pile broadloom carpet available “Diplomat is now available in ten is found in darkest green, closely in the popular 3.66m width, which attractive colour ways that reflect associated with nature and of course has been extensively tried, tested today’s décor trends,” he continues. Van Dyck’s newly adopted brand vision, and trusted in various hospitality, “Among these are four brand-new sustainability. commercial and residential installations. ones, all with different shades of a cross “The other six colours, which have “This carpet has been on the market pattern.” been part of the range for the last five for almost 30 years and, as technology The colour Thames comes in brown years, remain highly popular among has advanced, has undergone several with a black diamond pattern, the designers and decorators, and anyone changes, all of which have provided standard pattern by which Diplomat has else looking to give their decor the great service so far,” says Van Dyck sales come to be known by. elegant, sophisticated and luxurious and marketing director Bernd de Smedt. Rhine comes in a rich grey shade, not style associated with Diplomat,” says de “With pattern and colour selections unlike that of a pencil, and is suitable for Smedt.

EmeraldRhine Lagoon Thames

Electrolux brings a sense of luxury to everyday cooking

Among Swedish appliance maker Electrolux’s latest luxury lifestyle kitchen gadgets is the AEG Avant-garde steam oven. The multifunction oven for fast and healthy cooking offers 13 heating modes with a comprehensive range of pre-programmed recipes, and proudly boasts an A-rating for energy consumption. All of the steam oven’s processes are managed digitally, making it easy to use. It can even accurately determine all the pre-requisites to cooking, including settings such as duration time, shelf level for the dish and precise required temperature. The AEG steam oven is easy to clean and sports a self-cleaning function. The Avant-garde steam oven helps users prepare healthy, delicious meals without having to add any oils or fats to keep the food from drying out. It also ensures optimum retention of vitamins, nutrients, flavours, texture and The AEG Avant-garde steam oven. colour.

26 Home Goods Retailer – September 2011 Product Showcase

Toshiba unveils world’s first glasses-free 3D laptop

Toshiba’s Qosmio F750 3D is the world’s display, the Qosmio features a high- first commercially available glasses- definition web camera with face-tracking free 3D laptop that can display 2D technology, which continually detects and 3D content simultaneously on the position of the viewer’s face. This one screen. This means the user can provides a large 3D viewing watch 3D content in one window while zone without blind spots. simultaneously browsing the web The Qosmio can be for additional information in another connected to any window. 3D TV via an HDMI “The Qosmio F750 3D demonstrates cable, so this excellent how Toshiba uses its outstanding 3D experience can be expertise in research and development enjoyed with friends and family. to turn innovative technologies and Additionally, with embedded The Qosmio 3D laptop is glasses-free. applications into real products,” says Harman Kardon stereo speakers and Toshiba Southern Africa regional general Dolby advanced audio users get a truly Qosmio can also help architects, interior manager Domenico Gargarella. “This new cinematic experience in 2D and 3D designers and product designers bring showpiece model offers the cutting- mode. their ideas alive, while scientists can use edge technology that multimedia Featuring high-quality DVD 2D to 3D the technology for 3D modelling. enthusiasts and early adopters are realtime conversion, the Qosmio opens Thanks to sophisticated 2D to looking for.” up fascinating opportunities beyond 3D conversion, which adds a third Toshiba uses a switchable active lens movie watching and video gaming. dimension to 2D images in realtime, to separate the two parallax images Professionals in the tourism sector surgeons can harness the power of 2D and guide them into the left and right can make use of innovative online to 3D conversion to improve their use of eye. To allow the viewer to vary his or services such as vivid 3D images of probes and further minimise the impact her position in front of the laptop’s hotel rooms, museums or city views. The of invasive surgery.

Kodak brings innovative consumer inkjet printers to SA

Good news for consumers who are tired or in the office, at market-changing low of their home or office printing costing costs. exorbitant amounts of money and These features mean a total of 48 per producing less-than-satisfactory results, cent average savings on replacement inks is that Kodak has launched its Inkjet and the lowest average cost-per-page, with range of all-in-one printers in Kodak Inkjet printers also offering very low South Africa. power consumption that uses 71 per cent The products less power in stand-by mode. incorporate Kodak’s Compatible with both Windows and pigment-based inks and Mac, the premium all-in-one products in printing technology, this range of intelligent printers are packed which produce long- with nifty features like the automatic lasting, high-quality duplexer: Home Centre software that printing at a fraction of enables the user to edit and add effects to the cost of other cartridge images, as well as memory card slots for replacements. loading images directly off a camera. The printers allow Premium printers are also equipped with users to print crisp, wi-fi capability that requires only seven sharp documents and minutes to set up, making it possible to Kodak’s inkjet printers offer lab-quality photographs send documents and images directly from high quality printing with that are smudge-proof, water- a smartphone or iPad to a printer, using affordable ink. resistant and last a lifetime, at home the easily downloadable Kodak Pic Flick.

Home Goods Retailer – September 2011 27 Fair Report

IFA 2011 Retailers and industry confident

Retailers and consumers reacted positively to the record number of product firsts at this year’s IFA. The world's largest trade fair for consumer electronics and household appliances ended on 7 September in Berlin, with orders placed for more than €3.7 billion.

small appliances at net industry prices reached €160 billion dollars (up eight per cent). In 2011 the industry expects global demand to increase yet again. In 2011 in Germany the industry expects the market for large appliances to expand by two to three per cent and for small appliances to grow by four to five per cent. Energy and water savings, ease of operation, intelligently networked home appliances and smart grids were all topics that attracted keen interest.

Home appliances: innovative, efficient, comfortable The home appliance industry for the fourth year integrated into IFA – and innovations by the industry continue to deliver exciting advances in comfort, lifestyle, wellness and health at home. A high priority in appliances is operator comfort and ergonomics. Intelligent electronic controls make everyday use easier. Operating noise is reduced, The trend to healthier eating continues, powered by steamers, built-in and stand-alone ovens, and connections to the internet may and an extensive range of smaller electrical appliances designed to help with the careful deliver software updates or recipes and preparation of foods. preparation tips. Appliances connected to smart grids enable the cost-effective use No fewer than 238 000 visitors attended IFA, as more than 45 per cent of annual of energy. this year's show (up three per cent on sales take place after this event. Some modern washing machines last year) and 1441 exhibitors (up one Market researchers expect that in are equipped with programs optimised per cent) exhibited their latest products 2011 the consumer electronics market to clean clothes while using less water in a display area covering 140 200 square will grow to €690 billion, an increase and lower temperatures. Users can set metres. of about seven per cent. The European dishwashers to use water efficiently, It is expected that the many market is anticipated to grow to around to wash and dry pots and pans using innovations and product firsts will have a €204 billion, an increase of six per cent, special cycles. Dryers have self-cleaning positive impact on the markets as end-of- while the industry’s expectations for condensers. Ovens and small appliances year business gets underway. According Germany are €27 billion and four per cent operate by simple touch. Doors without to all the major retailers there is no better respectively. handles open and close with a single time to introduce new products than at In 2010, worldwide sales of large and press from a fingertip.

28 Home Goods Retailer – September 2011 Fair Report of good end-of-year business

degree areas ensure optimum cooling and storage, while new models set new standards in design, from the number of doors and drawers to LED lighting, from integrated ice makers to bar-code scanners to LCD TVs on the door. Coffee makers continue to soar as a market segment, and the choice of products and product features continues to expand. Product selections range from traditional coffee machines to espresso machines, individual servers and machines that automatically identify and measure the proper proportion of ingredients, to machines with tailor-made mounting solutions for the kitchen. As a category, personal care and beauty appliances experiences significant growth. Hair care and hair styling products are available in many styles and with many features. There is also a diverse range of other personal care appliances, such as hair removal and beard trimmers. Here too, TV shows provide many examples and drive consumer use, with Coffee makers continue to soar as a market Dishwashers can be set to use water programmes about beauty topics and segment, and the choice of products and efficiently, and to wash and dry pots and reality shows about model casting. product features continues to expand. pans using special cycles. Economical use of energy and water for savings in the replacement of old Cooking at home is more “en vogue” There is a long tradition of working and inefficient appliances. In European than ever. TV shows present celebrity hard to improve energy efficiency and households there are an estimated 180 chefs who suggest delicious, exciting, conservation among manufacturers million appliances that are over ten years easy-to-make, quick-to-cook meals for of home appliances. More and more old yet still in use. The average lifespan families and friends. In large appliances, new and innovative device concepts of household appliances is more than 12 induction cookers and high-speed push advances forward and achieve years for a washing machine or dryer, and ovens are migrating from restaurants to significantly better results than often almost 17 years for a freezer. offer innovative features and programs required by law or conservation A recent study by ZVEI reports that for cooks at home. In small appliances, standards. The objective is clear: to save older, inefficient appliances annually creative users now enjoy innovative food water and energy without sacrificing consume 44TWh of electrical energy. processors, blenders and grills. excellent performance and comfort. There is clear opportunity for the industry The trend to healthier eating Impressively, over the past ten years to engage, educate and promote continues, powered by steamers, built-in washing machines, dryers, refrigerators, conservation to consumers, who benefit and stand-alone ovens, and an extensive dishwashers and other appliances have from the purchase of modern, energy- range of smaller electrical appliances reduced the use of energy between 30 efficient appliances in three ways: they designed to help with the careful and almost 50 per cent. And the portfolio protect the environment, shrink their preparation of foods. of energy-efficient appliances is growing energy bills, and gain advances in Refrigerators do more than provide to include even coffee makers. comfort and improvements in lifestyle. the longest-possible safe storage of food. While are new EU efficiency Counter-depth units are less-invasive in requirements for household appliances The October issue of HGR will cover trends the kitchen. Air filters, humidity controls, that set limits on the energy consumption in consumer electronics that emerged from separate storage compartments and zero- of new products, there is huge potential IFA 2011.

Home Goods Retailer – September 2011 29 Diary

Thousands expected at debut India International Furniture Fair

Augmenting the enthusiastic response Pedro Ortiz, Piel Confort, Tajoma Valencia will add value to the massive Indian market from the international and local furniture (Spain), Jacques Pergay (France), Gatto with a credible buyer-seller meeting place manufacturers, the inaugural India Cucine (Italy), American Hardwood Export for industry members to source innovative, International Furniture Fair (IIFF) is all geared Council (US), Classique, Ergoworld, Ewins, new-to-market product offerings and keep up to host multiple seminars and discussions Falcon Incorporation, Innoplan, Ivena, abreast of major global design and industry on the emerging trends in furniture sector Koda, Lifeshop, Lorenzo, Sam & Sara, Sitra trends.” from 16 to 18 November 2011 in Bombay Holding, Star Furniture, Zhaplin (Singapore), Highlights of the show are planned for Convention and Exhibition Centre. AQSA International, Iqbal Furniture, NUK the interest of various sectors, local and Organised by MP International Pte Ltd Furniture, Warisan (Indonesia), G Pacific international, that are attending the fair. Two (MPI) in partnership with the International Enterprises (Malaysia), MDF Creation half-day design seminars will be dedicated Furniture Fair Singapore (IFFS), the show will (Hong Kong), Ho Bridge (Taiwan), and to discussions on emerging furniture design welcome about 100 participating companies Deluxsh, Dongguan Hongyun Furniture, trends on the global and Indian platforms. and brands from leading furniture names Goldkey Import and Export, Guangdong Over six power-packed sessions, prominent from around the world. Expected to gross Hongqui Furniture (China). The trade show industry professionals will delve into 5000 square metres, the trade show will will also feature leading Indian players topics on design trend spotting for India’s feature several country pavilions, including such as Artasia, Burosys Furniture, Decora residential and hospitality sectors and the Singapore, Malaysia, China, Spain, India and Innovations, Maspar, Mehar Industries, Laxmi global influences on India’s furniture market, Indonesia. International Export, SunCity and Sharda as well as the rise of sustainable green More than 70 per cent of the exhibitors India. architecture. are from China, France, Italy, Malaysia, Says MP International CEO Sylvia Phua: The show is expected to draw over 3000 Singapore and Spain. Some of the “We are overwhelmed with the response trade visitors from India and the rest of international participants include Fama received from the international and local South Asia. For more information on the Yecla, Mobel Yecla, Relax Zaragoza, trade and industry players. The launch of IIFF event, visit www.indiafurniturefair.com.

Australian International Furniture Fair returns in 2012

Following on the success of this Decoration + Design’s resident trend year’s fair, the Australian International forecaster Genty Marshall, the display Furniture Fair and the co-located will inspire visitors with a diverse range Decoration + Design fair returns to of furnishings from Australia and the Sydney from 1 to 3 February 2012 at world. the Sydney Exhibition Centre, where Known for playing host to the latest ranges of furniture, artwork, internationally acclaimed speakers, the bedroom furniture, kids furniture, dining International Industry Seminar Series furniture and entertainment furniture returns next year with an exceptional will be unveiled. line-up of industry experts from across Decoration + Design will showcase the globe. products from industry leaders and The highly popular Hotel + Hospitality exciting new players, presenting fabrics, Furnishings feature will also appear soft furnishings, lights and lamps, again, offering an array of the latest outdoor decorations and furnishings, designs and innovations in the hotel, furniture, objets d’art, artwork and more. motel, club and restaurant sector. Visitors will be able to preview more The 2012 Australian International than 200 exhibitors under one roof. Furniture Fair is the first buying fair on A third instalment of Design Futures the Asia Pacific calendar, attracting will also feature at the fair. Curated by thousands industry representatives, including furniture and furnishings Renowned for forecasting the trends of retailers, architects, interior decorators, the coming year, the AIFF will once againb designers and stylists. unearth emerging designers and welcome For more information visit www.aiff. global leaders in design and trends. net.au.

30 Home Goods Retailer – September 2011

Publisher's Comment

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Confusion and indecision

These are the hallmarks of this Government. What can have prompted the three Government departments – Economic Development, Agriculture, Forestry and Fisheries, and Trade and Industry to, at this very late stage, argue for the Walmart/Massmart acquisition to be sent back to the Competition Tribunal “for further consideration". Walmart’s interest in doing a deal to acquire Massmart has been public knowledge for a long time. Certainly long enough for alarm bells to have rung in those three government departments, and a united response drafted, and acceptable terms agreed, to be placed before the Competition Tribunal at a very early stage. Those considerations would have been aired at the appropriate time and at the appropriate venue. It would have allowed Walmart/Massmart the perfect opportunity to study, to respond, and to deal with the fears and concerns on a detailed basis. That opportunity was not seized. This is a great pity because the impression the three Government departments have now created with this late, late challenge, is that they have bowed to trade union pressure. This rethinking of their original position is simply a confused attempt to demonstrate their solidarity with the unions and to underline their worker credentials. Can it really be in this country’s best interests to postpone finality on this deal? All emerging economies desperately need foreign investment, and South Africa, with its vast disparities between the rich and the poor, needs it more than most. Walmart’s interest in the huge Massmart group – and its willingness to pump billions of dollars into the deal and the economy, was a strong positive signal to other potential investors. Yes, the Government has every right to approach such deals with caution and to impose conditions which are fair to both parties and which look after the country’s best interests. We do not believe they have achieved that with this late clumsy charge. It cannot be reassuring to other large potential investors. And what if Walmart pulls out?

New sales executive for HGR We are delighted to announce that Renee Howland has joined HGR as a sales executive. We have long felt that HGR has needed a much more active and visible presence in the market to capitalise on its unique and iconic status as the sole publication servicing this huge and dynamic industry. Renee joins Frances Venter who shares that mandate with her. Renee has wide experience in a variety of industries and has achieved a high degree of success wherever she has been, and we are thrilled that she has agreed to join us. Please welcome her and bear in mind that HGR’s interests and those of the industry are virtually identical.

32 Home Goods Retailer – September 2011 Excelsior BRS Galaxy Sleigh Bed

Romano Sleigh Bed Venecia DRS

Telephone: (012) 333-3162/3/4, Fax: (012) 333-6453, 32 Eland Str, Koedoespoort, Pretoria, 0186 Made in South Africa