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Independent Food Retailers.
Sustainability in a changing
Retail Landscape?
Who are IFRs?
SA Retail Landscape
•Total GDP - ±R2700bn*
•Unemployment = 37%?
•Total Consumer Spend (2010) - R605b**
•Total Food & Grocery Spend - R232.5b (38%)
•Electricity increases: ±25%***
•Fuel price (2003-2011) - ±275% increase
* Source: International Monetary Fund
**Source: Fernridge and Bank of America, Merill Lynch, June 2011
***National Energy Regulator of SA
IFR - Research
•Absence of Data & Statistics
•Customer Survey (214)
•23 SA Independent Food Retailers
•Successful Independent Retailers
•Industry Leaders, academics & analysts
Challenges Facing IFRs
Access to Finance
Lack of Government Support
(Perception)
Lack of Skilled Labour &
Training
Rising Cost of Energy
Relevance of IFRs to
SA
Relevance of IFRs to SA
•Small Business - 52% of GDP and 61% of
employment*
•1985-2005 = 73% employment growth
•Informal & Independent Retailers - R79.5b**
•22.5% total consumer spend at
informal/independent**
* Source: info.gov.za (Pocket guide to SA - 2010/2011)
**Source: Fernridge and Bank of America, Merill Lynch, June 2011
•Service 81% of households in SA
Immersion & Retail Visits
The Concept of Collaboration
•Harmonisation
•Systemic Change
•Coordinated Effort and Approach
What Should IFRs Do?
Independent Food Retailers
Association of South Africa
Opportunities
Culture &
Resource
Sustain
Consolidation
Collaboration
Minimise
Community
Government
(Technology,
through
Facility
- Data&
socio-economic
of
Information
Value
Monopolization
new
channels,
Engagement
Resources
size/scale
&
Statistics
conditions
new
Preservation
products)
Organised
Business
CONSORTIUMS
Government
ACADEMIA
Category
Associations
Organised
Labour
Stakeholder Benefits
Stakeholde
Benefit
Retail Association
r
Organised Business
Increase & diverse
membership
Government
Broadened engagement
Category
Associations
Accelerated implementation
of key policies and initiatives
Increased Compliance
Organised Labour
Sustained Job Creation
Academia
Creation of new knowledge
How will it be
Resourced?
What’s in it for South
Africa?
What’s Next?
Independent Food Retailers
Association of South Africa
•
Imitha lead the
process
•
Register through
RASA
• Academic Research
• Approach
government,
consortiums and IFRs
•
Market to industry
Conclusion
Thank You.