7 December 2012

JD Group Buy Out


Steinbuild to buy hardware group


JD group subsidiary Steinbuild on Tuesday, 4 December 2012, made an offer to acquire Hardware Warehouse for R1.14 per share, sending Hardware Warehouse's share price up 5.15% to R1.02.
The deal values Hardware Warehouse at R88.8m.

JD Group - which is majority owned by Steinhoff Holdings and which acquired Steinbuild last year - said in August it would expand its furniture retail footprint, mainly in rural areas, by adding 50 new stores in the next financial year.

JD Group's share fell 0.12% to R47.99 and Steinhoff fell 0.81% to R26.83. Hardware Warehouse provides affordable building materials to low-to-medium income level customers mainly from the rural areas of the Eastern Cape, although it has grown its exposure to urban customers.

The company said on Tuesday the transaction would result in a number of financial and operational benefits to the stakeholders of both businesses.

Its shareholders would receive "a price that reflects the inherent value of the Hardware Warehouse business", while the business would benefit from being part of a larger retail group with a national footprint that included property management, procurement, treasury management and financial services. Hardware Warehouse would also benefit from a reduced risk profile due to a greater footprint across Southern Africa.

The scheme is subject to the fulfillment of various conditions. Following implementation, an application would be made to the JSE to terminate the listing of the Hardware Warehouse shares, the company said.

In September, Hardware Warehouse reported that headline earnings per share from continuing operations were 8.78c for the year ended June 30, from 5.11c previously.

Source: Business Day

6 December 2012

Christmas Trading Tips




This season, when you can expect to see heavier traffic volume in your stores, try a laser focused approach on the sales floor. 

Often, during these busier times, you expect that customers will outnumber your sales team by quite a lot. While it's a wonderful problem to have, there are certain things you must do to make sure that you are able to take full advantage of it; make order out of the chaos and reap the rewards in terms of sales -conversion, average sale per customer, average units per customer, etc.

Without direction, the sales team can get caught up in the whirlwind of activity with the resulting sales achievement being significantly less than what it could be.  This might be a natural occurrence and may not necessarily be because your sales team are doing something wrong.

What they need is continuous guidance, direction and coaching on the sales floor. With proper sales floor leadership and direction in place, your customers will enjoy shopping in an environment where everything is well managed. They'll be able to get in and out fast, so they can move on to other things they need to accomplish.

They’ll enjoy being served (and sold to) by competent, happy, knowledgeable sales individuals and getting their questions answered quickly. And for those customers who don't want to take care of their shopping quickly - the ones who enjoy lingering and spending time, choosing just the right items - your sales team will be there for them too – providing exactly what they need.

The Store Manager, Sales Manager or other Management Person in Charge, must be free to perform the function of supervising on the sales floor during busy times. This role cannot be delegated to just anyone..choose the person carefully. The sole purpose of this function is to firstly increase sales now however if you have an unhappy customer this will effect your future business, so make sure the sales team and customer support functions are properly employed and free to do their jobs. Whoever you have decided to put in charge of the sales floor, must be aware of everything that is going on in the store at all times and must act to remove potential obstacles to performance. Clearly, customer's will benefit from this organized approach during a hectic time and this will have a direct impact on your current and future sales.

Here are some guidelines for the person in charge of your Sales Floor:
  • Keep moving around the store (managing by walking around and keeping the finger on the pulse at all times).
  • Have a system for being kept informed of sales by balancing back the sales team at certain convenient intervals regarding individual sales, conversion rate or any other important aspect of your operation.
  • Always be facing the front of the store so you stay up to the minute on the traffic entering and exiting (one eye on the floor and one eye on the door)
  • Set up a signal system that your team will recognize - perhaps a slight nod - to acknowledge and assist a customer as well as having a different signal for potential shoplifters as this is normally where retailers suffer their biggest losses, so in other words be aware of who is doing what at all times.
  • Be on the lookout for items that are selling out so you have a designated individual to replenish to ensure your shop floor remains attractive. (Items in storerooms won't naturally sell themselves). And then follow up to ensure it’s done quickly.
  • One of a customers biggest irritations during the festive season is having to sit in a slow moving queue or bottlenecks at the cash desk or checkout. Whoever is in charge needs to take action. Actions like: a) calling in additional employees to assist with packing functions  b) calling another cashier to the desk   c) instructing a runner to go for supplies  d) spending a moment chatting with customers who are waiting - taking their mind off  the fact they are waiting.
  • Check all areas of the store, regularly, to ensure cleanliness and safety.
  • Watch for individuals who are finished doing what they were doing and have not yet engaged in something else that is productive. Give them a new task or point them toward a potential customer.
  • Let the team know that they can, and should, look to you for guidance on any problems that come up. Let them know you are there to ensure the smooth operation of the sales floor providing the very best service to customers and that nothing is more important to you. The customer always comes first and everybody needs to understand that they need to have the customer as the number one priority, anything else can wait.
  • Tell the sales team to notify you should they be going on a lunch or tea or any other break so you can check firstly if it corresponds with your sales roster and secondly to ensure employees don't stay  away for too long. Staff respect what you inspect and this action will improve overall productivity in whatever area you are inspecting or checking. Review the schedule regularly. Change it if necessary. Lunch and other break times must be adhered to unless you make a change.
  • Stay on the sales floor. If you absolutely must leave the sales floor for a short time, appoint someone to take over. This process can also be used to review your future succession planning and to evaluate individuals for future development.
  • Above all, keep the team motivated - a Happy staff member = a Happy customer (be a Cheerleader and share information!)
Converting shoppers into buying customers is much easier when somebody is in charge of the Sales Floor – removing obstacles and directing virtually everything. There will be fewer customers who leave without buying because you've made sure that they were greeted and welcomed into the store, that you have ensured all products/models/styles/sizes that you have available are actually on the sales floor, that the environment is clean and safe, that the sales team are pleasant, calm and available to attend and sell to each and every customer and that the checkout is under control.

Basically, you will then have provided a great shopping experience in an otherwise hectic and chaotic time, and you will be rewarded with higher sales through increased conversion, average sale per customer, average units per customer, etc.

Having a person in charge of the Sales Floor is a ‘must have’, particularly at busy times. If you want to capitalize on increased traffic in your stores, try it. 


Should things not go as smooth, please don't hesitate to contact us should you require any assistance with any of your training needs to improve your business. We provide various workshops and training, and would be more than happy to provide you with a non obligatory quote.

Master Retailing Accreditation / Memberships and Affiliation
Alphabetical order 
  •  CGCSA (Consumer Goods Council of South Africa)
  • GESFWA (Global Education Support Forum for Working Adults)
  • IADL (International Association for Distance Learning)
  •  IAF (International Apparel Federation)
  • IAO (International Accreditation Organization)
  • ICM (Institute of Credit Management)
  •  IEAC (International Education Accreditation Commission)
  •  IRE (International Retail Education)
  •  NUTN (National University Technology Network)
  • RCSA (Retail Council of South Africa)
  • W&RSETA (Wholesale & Retail Sector Education and Training Authority) a division of the Department of Education.

 The Master Retailing Team would like to wish you all a bumper festive trading, a Merry Christmas and a Happy New Year.



5 December 2012

Be Aware and be Careful



COSATU action to stop open road tolling in Gauteng

3 November 2012
The next phase of COSATU’s campaign of mass action against the e-tolling of our highways, will be a protest slow drive on the highways of Ekurhuleni on Thursday 6 December 2012.
Motorists are urged to assemble from 06h00 at the Old Trade Centre (Now Mboro Church), cnr Black Reef and Masakane Streets, near the Scaw Metal factory, Alrode. From 09h00 the convoy will join the N3 at the Heidelberg Road on-ramp, then drive North along the N3, N12, R24, and R21 to the Nelmapius off-ramp in Centurion and then back South on the R21, N12 West towards Johannesburg and back on to the N3 South before dispersing.

Please note this is an extract from an e-mail received from a Ward Councillor from the City of Johannesburg: -

All road users in Gauteng. There will be major road blockades in Gauteng's highways set up by COSATU. This is relating to the E-Tolling system the government wants to implement. Drivers of vehicles in Gauteng are urged to make use of alternative routes due to the E-Toll strike as strikers would be blocking off the routes. The following routes will be affected from Thursday morning 6 December: N3 highway (Durban/Johannesburg),N17 highway(Johannesburg/Springs),N12 highway(Witbank/Johannesburg&Johannesburg/Kimberly).N1 from southern bypass to Pretoria,M1 Jhb/Sandton,M2 Germiston/Joburg,N14 Krugersdorp/Centurion. It’s unknown how long the action will last, motorist are advised to seek alternative means moving around. DO NOT attempt to drive through the blockades as strikers could turn violent. Please notify fellow road users.

There is unfortunately no way that we can confirm that the planned action is going to take place, we at Master Retailing would just like to ensure everybody is aware of this and that they please be careful and take care on the roads.

3 December 2012

Congratulations to The Foschini Group (TFG)


 Digital and The Foschini Group (TFG) thrilled by prestigious Inkosi Award win


The Inkosi Award, the most coveted of the DMA Assegai Awards, was awarded to The Foschini Group (TFG) for their Christmas Mystery Mobile campaign, which was developed by Techsys Digital (Cape Town).
The prestigious title is awarded to the campaign which the panel of judges believes has most notably excelled in strategy, creativity and return on investment. The Assegai Awards were held on Thursday, 15 November 2012 and recognise excellence in direct and interactive marketing, which are not only creative but integrated too - making use of multiple channels to drive response across media channels.

With 356 campaigns entered into the award, 2012 saw a massive 37% increase in entries from 2011. This year's entries were marked by measurable strategies withreal bottom line benefits and the dissolution of the above and below the line split. 

Andrew Walmsley, Managing Director of Techsys Digital said "We have partnered with TFG to launch a number of successful digital campaigns over the last four years. This campaign enjoyed over 130 000 consumer interactions which was a fantastic result for everyone."

Techsys is a digital marketing agency based in Cape Town. They are passionate about integrating new insights, strategies and technologies to achieve world class results for their portfolio of clients.
Source: Bizcommunity

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