Retail giants pioneer shopping mall culture in Africa New retail precincts across Africa are not only

changing consumers' buying behaviour but also changing their social behaviour. Malls provide a venue for consumers to congregate and they're doing this in preference to other social activities. This is according to Gareth Pearson, CEO of BMi Research, SA's leading independent research organisation, who adds the momentum for the transformation has come from the major retail chains and property developers who have pioneered a new 'shopping mall culture' in major cities in Africa. For the first time, the more affluent consumer has access to formal retail which provides choice and convenience - and this is driving consumption demand. This advancement of South African retailers is predominantly in Sub-Saharan Africa, but as more and more retailers recognise the growth opportunities in untapped markets, the footprint will expand. Already, those retailers and retail suppliers who have invested in Africa are realising robust margin growth, sweetened by the fact that because consumer credit is still not an option in many countries, the cash platform provides limited financial risk. The offering of quality goods in a first-world retail outlet such as fresh deli and butchery is the most significant retail trend - and it's also an irreversible trend, Pearson continues, "Younger consumers will become accustomed to the new retail offering and the combination of convenience and aspiration will drive demand. In addition, the ongoing urbanisation of the major cities will continue to galvanise the retail growth. "This formal retail advancement is also hastening the decline of traditional informal trading as economies of scale enable the more sophisticated retailers to offer consumers cheaper prices and greater value. Despite the changes however, the informal trader will always have a place within Africa." He believes opportunities for growth remain open to both existing as well as new entrants, but site selection is paramount. "Location, leases, management, logistics and supplier agreements are also pivotal to any successful retail expansion in the African market. Distribution and cold chain limitations remain obstacles but the opportunities are there for all major retail and fast food chains as well as secondary and specialist retailers and service providers who will benefit from the broader expansion. Major retailer brands currently across Africa include Casino, Clicks, Edgars, Game, Jet, Mr Price, Nakumatt, OK, PEP, Pick 'n Pay, Shoprite, Spar, Truworths, Tusky's and Woolworths "Observing the many people stepping onto an escalator in a shopping mall in cities across Africa for the very first time, it's clear that the only way for retail on the continent is up," he concludes. Source: http://www.bizcommunity.com/Article/196/160/61475.html - Accessed 06/09/2011

No Risk In Zimbabwe: Shoprite

SHOPRITE chairman Cristo Wiese said his company will go ahead with its R167 million deal to buy OK Zimbabwe Limited, their investments would not be at risk as perceived in some quarters. South African investors have been making inroads into Zimbabwe following the formation of the inclusive Government, which has seen the country starting to regain its image as a good investment destination. Wiese told SA media at the weekend his company would proceed with plans to enter Zimbabwe despite the perceived risk on investments saying "we have never had threats ourselves." Wiese told SA media at the weekend his company would proceed with plans to enter Zimbabwe despite the perceived risk on investments saying "we have never had threats ourselves." Wiese was responding to questions from South African media on whether Shoprite did not feel threatened investing in Zimbabwe considering the crisis at Kingdom Meikles Limited, which foreign media claim is a Government bid to nationalise the company. "We are like good Africans, we are confident a solution (regarding KML) will be found and we believe the whole of southern Africa will enter a new era over the next five to 10 years," said Wiese. Shoprite, SA's largest retailer, is targeting a controlling stake in OK Zimbabwe Limited. Talks between the two have been going on for three months Shoprite officials were in the country recently to finalise the deal. The South African retailer announced plans to enter the Zimbabwean market early this year after the adoption of the the South African rand, the euro, the US dollar and the British pound as legal tender. The retail industry in Zimbabwe has been the fastest to recover from years of economic decline, prompting Shoprite to seek an early foothold in the market. The JSE-listed company entered Zimbabwe in 2000 with the opening of a Shoprite shop in Bulawayo, the only branch in the country. Any purchase in OK would throw it into competition with its SA rival Pick 'n Pay, which has a 25% stake in TM Supermarkets. Another SA grocery shop, Mr. Price, has already established branches in Harare as the country's retail sector gradually recovers. Shoprite Holdings Limited is an investment holdings company that, through its subsidiaries, constitutes a fast moving consumer goods (FMCG) retail operation on the African continent. Its primary business is food retailing to consumers of all income levels.

The company is organised into two main business segments: Supermarkets, including fresh produce, franchise, furniture and insurance. Today the Shoprite Group trades with 1 068 corporate and 275 franchise outlets in 17 countries across Africa, bringing the total number of stores in the group to 1 343. Shoprite is in Uganda, Zambia, Nigeria, Tanzania, Mozambiaque, Mauritius, Malawi, Madagascar, Ghana and Angola. Source: http://www.zimembassy.se/news.html - Accessed 06/09/2011

Invest in Zim, Swedish companies urged 1 October 2009 New Ziana. Swedish companies should seize investment opportunities in Zimbabwe now and be on an advantageous position when normal relations between the country and the European Union resume, an official has said. Swedish Ambassador Stan Rylander said nothing could stop Swedish firms from investing in Zimbabwe. "If you are following the sanctions debate, you might get the impression that something is preventing Swedish companies from investing in Zimbabwe," he said. He said the Swedish embassy was stepping up efforts to convince more companies to come and invest in the country. Rylander was speaking on the sidelines of a signing ceremony of a US 200 million deal between Zimbabwe's biggest telecommunications firm Econet Wireless, Ericsson of Sweden and ZTE Corporation of China on Friday. The Swedish firm has been involved in the supply of equipment for virtually all the country's three mobile telecommunications firms that include NetOne and Telecel. Rylander said the embassy was encouraging Swedish firms to invest in Zimbabwe in anticipation of normalisation of relations between the Southern African country and the EU. Relations between the two have been strained for close to a decade now over political and economic policy differences, with the EU imposing economic sanctions on Zimbabwe which have seriously hurt the economy. High level talks to normalise relations between the two have however started in earnest. New Ziana http://www.zimembassy.se/news.html