Johannesburg - Retailers have needed to show great initiative since the economic downturn scuttled the spending boom.
This was the message at the 13th Annual African Congress of Shopping Centres held in Johannesburg in the past week.
It also emerged at the congress that the new consumer emerging from the country's economic recession - thought to be more or less over - is less inclined to buy. Therefore, new ways have to be found to draw customers into a store rather than depend on the shopping centre to do so.
Instead of catering for profligate fashion enthusiasts, retailers now have to reposition themselves for thrifty recessionists.
In the US, falling property prices, tumbling share markets and job losses have sliced a whopping $400bn off debt-laden consumers' annual expenditure.
Although South Africa has survived the economic downturn better than the US and Britain, consumers are acting similarly, says Andrew Jennings, MD of retail at Woolworths.
"It's therefore no wonder that brands and retailers targeting the luxury market, such as Mercedes-Benz and Sun International, are repositioning their products to hold on to older consumers and at the same time reach out to the younger set." Jennings says that one of Woolworths most innovative concepts to date is its newest store in Melrose Arch.
It excels in terms of design and the shopping experience.
The 5 200m2 store is the first Woolworths branch to take up three floors and offer the total Woolworths range in a store-within-a-store concept.
He says the company is going a step further by concentrating not only on the store but also on the products it sells.
Edgars' Hugues Witvoet, CEO of Edcon's departmental store division, says that for Edgars, which celebrates its 80th birthday this year, the time is ripe for renovation.
The group is therefore opening an iconic 7 000m2 store concept in Melrose Arch.
He says the shop will incorporate dramatic layout changes to promote the group's brands and offer a more interesting shopping experience than usual.
Edgars does about 80 million transactions a year equal to between 8 000 and 15 000 a month.
One retailer that is going from strength to strength is the fresh produce supplier Fruit & Veg City. This company, which draws a million customers every week, will reach R4bn in turnover this year.
MD, Brian Coppin, says the turnaround came with the expansion of its brand to the Food Lover's Market at the Hillfox in Roodepoort.
Food Lover's Café followed, and Freshstop@Caltex in partnership with Chevron is becoming established at Caltex filling stations.
He reckons this is the group's next growth point and expects that up to 200 of these stores will open countrywide over the next three years. The group currently has 88 Fresh Food, 10 Food Lover's Markets, six Food Lover's Cafés and six Freshstop@Caltex shops.
Pick n Pay's CEO, Nick Badminton, says the group is involved in significant changes to certain of its brands, among other things to make provision for the LSM 8 to 10 consumer. It is expected that 25 stores will have been upgraded by November.
The group will also convert 66 Score stores into Pick n Pays and 19 into Boxer outlets, as well as sell off or close 52.
Daniel Silke, an independent political analyst, believes that in this recessionary environment consumers want to see simplicity and style on the shelves.
"They want to avoid stress and anxiety, but still have their luxuries - only in smaller packages." He says many products like organic food, and organic dog food in particular, Eco-goods and new scientific products will remain in the wings for now.
- Sake24