Insight Retail Magazine by INSIGHT PUBLICATIONS

ISSUE 08 / OCTOBER - DECEMBER 2014

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RETAIL BUSINESS INTELLIGENCE

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IES

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EDITION 013 | MAY - JULY, 2016

’ CONVENTION

2ND EDITION

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22ND - 23RD JUNE 2016

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Security in Retail BOOK TODAY TO RECEIVE 15% DISCOUNT | QUOTE: AFRA15 T: +44(0)203 033 2020 W: www.retailcongressafrica.com E: info@retailcongressafrica.com

Bakery innovation & Retail Risk Management evolution in retail

>>Insight by Omega Risk Management

Leasing transforms retail sector

Technology Trends

RATEGY DIRECTOR | PICK N PAY Jeremy Hodara CO-CEO | AFRICA INTERNET HOLDING

- Case study outlook

ANAGING DIRECTOR RETAIL ESTATE | MR PRICE Ramanathan Hariharan CEO | MAX, LANDMARK GROUP

S SOUTH AFRICA Christine Service COUNTRY MANAGER | DISNEY

Dispensing trends in Retail PART OF THE

BROUGHT TO YOU BY:

- Milk , Water & Cooking oil

>>iVend entry to East Africa

Retail Technology trends - Omni-Channel retailing

2nd

4th December

2014

• Central Kenya Region • Eastern Kenya Region • Nyanza/Western Region

INSIGHT RETAIL #13 | MAY - JULY 2016

45 SUPERMARKET SOLUTION /REFRIGERATION

GONDOLAS.SHELVES.BREAD SHELVES. CASHIER COUNTERS. PROMOTION BOX. UPRIGHT CHILLERS &FREEZERS. SUPERMARKET DISPLAY CABINETS. TROLLEYS.ACCESSORIES. CHILLERS UNDERCOUNTERS. COLD & FREEZER ROOM. SOFT SERVE MACHINE.JUICE DISPENSER

COOKING,HEATING EQUIPMENT & BAIN MARIES

GAS BURNERS.FRYERS. SHAWARMA MACHINE. SHOWCASE & DELIS.CONVECTION OVEN. ROTTISSERIE.WARMERS.GRIDDLE.

COFFEE EQUIPMENT

TEA URN . COFFEE MACHINE . COFFEE PERCOLATOR . GRINDER

BUTCHERY

MEAT SLICERS.PATTY MACHINES. BONESAW.MINCER.SAUSAGE FILLER. MEAT DISPLAYS.

BAKERY

ROTARY OVENS.SLICER.MIXER. DOUGH SHEETER.DONUT ROBOT FRYER. PIZZA OVEN.DECK OVENS. BREAD TROLLEYS.PROOFER.BREAD RACKS

Main mombasa Road Allbid house, Opp ASL, P.O. Box 49938, 00100. Nairobi. Email:info@nkc.co.ke web: www.nkc.co.ke Tel:2 020 2133076 / +254 - 727 246 209/+254 - 725 351 079 INSIGHT RETAIL #13 | MAY - JULY, 2016

INSIGHT RETAIL #13 | MAY - JULY 2016

CONTENTS ISSUE 08 OCTOBER - DECEMBER 2014

PG 10 07 / NAKU SACCO 08 / LEASING CASE STUDY - TUMAINI 10 / TOMBAKE ENTRY TO KENYA

CONTENTS

12 / BAKE CONSULTANCY â&#x20AC;&#x201C; BAKE CONSULT 14 / ONE STOP BAKERY SOLUTIONS SHOP 15 / BAKERY ACCESSORIES

EDITION 013 MAY - JULY 2016

16 / OMNI CHANNEL RETAILING 19 / OIL DISPENSING CONCEPT 20 / WORLD CLASS SERVICE - WELLS FARGO

Pg 6.

Security Solutions

21 / WATER DISPENSING CONCEPT

Pg 10. Customer Service 26 / GETTING BAKERY RIGHT FOR RETAILERS 28 / RETAIL LEADERSHIP Pg 12. Retail Security 29 / RETAIL FORUM 2015 CALENDAR

Pg 13.

Techn ology Trends

30 / RETAIL IN UGANDA

PG 14

Pg 14. Risk Management 31 / RETAIL STATISTICS 34 / RETAIL CONGRESS Pg 14. Retail Tips

Pg 24.

Retail Trends

Subscribe for your next Issue: details on Pg. 33 See See details on Pg. 18

PG 16 4

INSIGHT RETAIL #13 | MAY - JULY, 2016

+254.735.350.690 +254.725.350.690

EDITOR’S NOTE Dear Reader,

556001 772305 9

RETAIL BUSINESS INTELLIGENCE

556001 9

ISSN 2305-5561

ISSUE 08 / OCTOBER - DECEMBER 2014

772305

RETAIL BUSINESS INTELLIGENCE DEFINING REGIONAL STRATEGIES

ISSN 2305-5561

Now available in...

EDITION 013 | MAY - JULY, 2016

’ CONVENTION

2ND EDITION

2016

Unlocking Africa’s retail opportunities

22ND - 23RD JUNE 2016

BE PART OF THE DISCUSSION

Security in Retail BOOK TODAY TO RECEIVE 15% DISCOUNT | QUOTE: AFRA15 T: +44(0)203 033 2020 W: www.retailcongressafrica.com E: info@retailcongressafrica.com

Bakery innovation & Retail Risk Management evolution in retail

>>Insight by Omega Risk Management

INSPIRATIONAL SPEAKERS INCLUDE:

Leasing transforms retail sector

Technology Trends

- Case study outlook

Dispensing trends in Retail

CO-SPONSOR:

MEDIA PARTNER:

PART OF THE

BROUGHT TO YOU BY:

- Milk , Water & Cooking oil

>>iVend entry to East Africa Retail Technology trends

4th

2nd

- Omni-Channel retailing

December

2014

• Central Kenya Region • Eastern Kenya Region • Nyanza/Western Region

INSIGHT RETAIL #13 | MAY - JULY 2016

EDITORIAL & ADVERTISING

Insight Retail East Africa CONTRIBUTORS Jasper Ouma Ronald Kemboi Elijah Kamau

elcome to the 13th edition of the Insight Retail Magazine, the only business magazine distributed quarterly free to the Retail industry in East Africa. The publication shares insight on 360 degree Retail trends, Technology and Innovation cum Industry’s best practices with a global benchmark. Today, Security has become vital in our everyday life therefore making it a top list agenda. This issue mainly focuses on retail security; a vital concept for every business. We highlight some of the security solutions and measures that can be undertaken to safeguard your business interests. In our retail events roundup for Q2/2016, coming up is the Retailers Convention 2016 scheduled for 22nd -23rd June at Sarova Panafric Hotel Nairobi and Mt. Kenya region for Central Kenya Event to be held on 14th July at Nyeri and Later for Eastern /Central Kenya in August at Meru.

We do appreciate our esteemed suppliers and industry solution providers who have embraced and partnered with us all throughout our retail events held at Regional and National level as they build their brand network one to one with the users and business partners who shares their vision enabling better understanding of their business models enabling the solution provider to tailor and plan solution required in advance and incorporate the same in their organizational strategic planning to ensure that they meet the requirements of the industry for both short and long term period.

EDITOR Maureen Musili

On our Publication, Insight Retail Magazine readers are also urged to subscribe for the magazine so as to get direct delivery of the publication to your stores, attend any of our Retail events complementary and getting nominal listing on upcoming East Africa Retailer’s and Supplier’s Directory coming up.

DESIGN/LAYOUT Judith Okong’o 0721496922

Finally, we would like to thank our readers and the entire retail industry for your continued support and contributions.

PUBLISHER Insight Retail East Africa

Happy reading!

© 2016 Insight Retail All material is strictly copyright and all rights were reserved. Reproduction in whole or in part without the written permission of Insight Retail is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at the time of going to press, but we accept no responsibility for omissions or errors.The views expressed in the magazine are not necessarily those of Insight Retail or Retail Interchange Centre. Retail Interchange Centre Ltd P.O. Box 36106 City Square 00200 Nairobi, Kenya +254 725 350 690 +254 735 350 690 email: info@insightretails.com www. insightretails.com www.insightpublication.org

Managing Editor – Titus Korir

QUOTE OF THE SEASON All of your customers are partners in your mission Shep Hyken We welcome your feedback and suggestion through our email: retail@insightretails.com.

INSIGHT RETAIL #13 MAYlinks - JULY 2016 Our publication is also available online from the|web below www.insightretails.com | www.insightpublication.org

SECURITY SOLUTIONS

One Stop Shop for your Security Solutions

This, Mr. Njama explains will reduce the blame game that the security back up as well as the business will be subjected to in the event of a disaster.

Although not alarming, it is an issue that everyone needs to be aware of. Owners of all types of businesses are immune to this threat. In fact, they have often become a prime target and consequently providing an opportunity to protect themselves accordingly.

Threats Amidst all these, Mr. Njama notes the need to create awareness that security is not a costly investment as many perceive it to be. He singles out that while many medium to large enterprises and especially those operating in ‘risky’ businesses tend to invest heavily in security solutions, a large number of Kenyans are not bothered even though the company’s solutions cut across the board.

ecurity is a vital consideration in all aspects of people’s lives; businesses and households have constantly prioritized this issue leaving nothing to chance however; the rising insecurity incidences are a sad reality among Kenyans. Today, more than ever, there are unfortunately greater threats to both people and property.

Threats to business security can come in all forms and may include anything from fraud, burglary, fire, vandalism and terrorist threats. While a comprehensive insurance policy will help should the worst happen, proactive strategies should be put in place to minimize threats to security occurring. It is such risks that have provided Security World Technology Limited an opportunity to counter by offering businesses as well as households’ security and safety solutions. “What started as a small business enterprise a decade and a half ago has grown tremendously over the years becoming the leading importer, distributor and provider of reliable, cost effective security solutions in the region,” explains Karanja Njama, Managing Director, Security World Technology Limited (SWTL). Today, SWTL stocks a wide range of world class products and security solutions backed by unrivalled technical and sales support, product training and value added services to ease one’s business concerns. The company’s strength is in the area of closed-circuit televisions (CCTVs), Intruder Alarm, Access Control, Safety and Fire-fighting as well as Fire Detection, Alarm systems, Metal Detectors & Scanners. “We also organize regular usage and installation trainings; our consumers’ have the opportunity to enroll their engineers as well as marketing and sales people to our unique trainings,” he explains. This, he says, helps our consumers to learn the techniques of going about/using the acquired solution. We source globally from reputed and leading manufacturers in USA, UK, Israel, and Asia (China, Malaysia, South Korea and Taiwan). Through this, users are kept abreast on how to use and install the product taking into consideration that most of these products are not locally manufactured. About life and not cost While he notes that the uptake of such solutions has been on the rise, he is categorical

that people need to get out of the notion that such investments tags along a high cost. The company is able to provide affordable up to date pocket friendly solutions. “Thanks to technology, a customer is able to integrate various security aspects in stages thus he will not have to do everything at once,” he explains. This means, for instance, a customer could start by investing in a CCTV system and based on his financial capabilities, scales up on the rest of the solutions as time goes by. In a nut shell, the integration of the various systems can be done in phases allowing flexibility. Upcoming business centers/buildings as well as existing ones can take advantage of this integrated security solution. From a retail perspective, Mr. Njama advises that investing in a CCTV is not only vital but a value addition to the business. Retailers who opt to employ more floor managers/ supervisors to curb vices such as shop-lifting and other disaster will only need a CCTV thus cutting on operational costs. Another important aspect to invest in is that of firefighting, fire detection, safety and alarm. “As opposed to theft, fire is the biggest danger,” he adds. It is important for retailers to install systems that pre-warn against such while aiming at saving life and property. Thirdly, a retailer should not ignore the anti-theft solutions which Mr. Njama notes that are aimed at minimizing theft at the exit as well as at the warehouse level. The MD reveals that as the advancement of technology continues to take center stage among businesses, SWTL is taking advantage of the changes by offering customers innovative solutions. The company is able to provide chief security managers in businesses an opportunity to own the whole day to day security/control process. This means that even with the presence of backup security, a business could also invest in their own back up in the form of technology whose access and control lies with the chief security person.

INSIGHT RETAIL #13 | MAY - JULY, 2016

On the other hand, back up security guards, a common feature in most public places in Kenya ought to be trained on how to use some of the gadgets. Today, nearly all public places have invested in the hand-held security frisking machines; however the concern has always been whether the gadgets help in detecting any security threats. The thorny issue of sub-standard and counterfeit products remains a challenge to many a security solutions provider. The company has continued to curb this through training even though the MD wishes for more to be done at by the standardization bodies as well as policy level to incorporate security requirements in the building code. To further deepen the take up and appreciation of security products among the domestic clientele, Mr. Njama is proposing to partner with retailers by coming up with a security section in supermarkets where some of the products can be displayed and sold to shoppers. He notes that the recent evolution into departmental stores is one such opportunity to explore. SWTL is known to honor the warranty period with regards to our products. Our products carry warranties of between one to two years,” he comments. In 2012, the company was ranked 32 under the Kenya’s Top 100 midsized companies Survey (‘Top 100 Survey’), an initiative of KPMG Kenya and Nation Media Group. The Survey seeks to identify Kenya’s fastest growing medium sized companies in order to showcase business excellence and highlight some of the country’s most successful entrepreneurship stories. SWTL has gone from strength to strength in building a dynamic distribution network covering Kenya (Nairobi-Head Office), Uganda, Tanzania and Rwanda that supplies dealership and service providers across the entire East and Central Africa Region. By Mr. Njama, CEO Security World Tech Ltd

RETAIL SECURITY

SOLUTIONS FOR - Banks - Schools - Hotels - Hospitals - Airport - Public Buildings - Retail

- Malls

Electronic Article Surveillance (EAS) Fire Extinguishers Detering shoplifting with EAS solutions

Security Surveillance Systems

Our range of analogue and I.P closed circuit cameras, go beyond simple monitoring and extend to home automation for crime prevention and environment monitoring.

Video Intercom Systems

Security Alarm Systems

Biometric AccessControl Systems

KENYA | Karuna Hse Commercial/Enterprise rd Junction Industrial Area, Nairobi Tel: +254.728 607 000 e: info@securityworldtech.com UGANDA | Ntinda Ind. Area Plot M275, Opp, Britania Kampala Tel: +256 414 223 1767 Cell: +256 782 115 464 e: info@securityworldtech.co.ug RWANDA | Kigali , Remera, Kisimenti Tel: +250 252 581 741 Cell: +254 788 382 626 e: info@securityworldtech.co.rw TANZANIA | Hifadhi EPZ Ubungo, Of Morogoro Rd , Dar Es Salaam, Tel: +255 22 277 3391 Cell: +255 767 607 000 e: info@securityworldtech.co.tz

INSIGHT RETAIL FEBRUARY | - APRIL, 2015 25 INSIGHT RETAIL #13 | MAY - JULY 2016 7

RETAIL MANAGEMENT

iVend Retail TO REACH DESTINATION OMNICHANNEL One of the most common myths surrounding the modern retail environment is this: omnichannel=online shopping. And vice versa. There are some good reasons for this misconception. During the past two decades, most online retailers were quick to embrace emerging technologies to get to know their customers more intimately â&#x20AC;&#x201D; often in ways their brick-and-mortar counterparts couldnâ&#x20AC;&#x2122;t consistently match. These investments have enabled the delivery of more personalized customer service, made transactions smoother and more efficient, and increased customer loyalty, all leading to repeat business for the retailer, further contributing to the continual surge in online sales. Yet despite the e-commerce explosion, the physical store remains the center of the consumer shopping experience. Industry observers believe it will be the most profitable retail channel for the foreseeable future. While profits certainly top the priority list of every retailer, improving the customer experience remains a close second. (And the two objectives are rarely mutually exclusive.) When e-commerce first came about, many traditional retailers were resistant, or ignored to see it as meaningful online business opportunity. As history shows, this was a tremendous error and a major missed opportunity. Now, the Store happens to be the focal point of Retail again, In the same way that offline brands resisted the first wave of e-commerce, many digital brands are now mistakenly ignoring the unique benefits of the offline retail channel. This is a mistake too.

Total Solutions Ltd 8

Nairobi T: +254724267814 | +254(20)3747007 INSIGHT RETAIL #13 | MAY - JULY, 2016 E: info@totalsolutions.co.ke

Dar es Salam T: +255755225970 | +255(22)713564891 E: sales@totalsolutions.co.tz

www.totalsolutions.co.ke www.ivend.com

Today, the power has dramatically shifted to the consumer, who has greater and faster information access than ever before. E-commerce, once weband desktop-centric, has morphed into mobile commerce thanks to the proliferation of smartphones and tablets owned by millions of consumers worldwide. With information essentially everywhere online, consumers have greater knowledge and exponentially more choices when shopping — both online and in-store. Therefore, retailers must compete not just on price and great customer service, but on the best overall experience across both channels, particularly in-store. Shoppers want an omnichannel experience; our research shows that more than half believe it would be helpful if retailers had one view of them across all channels. iVend Retail is the most advanced omnichannel solution available to retailers. It enables 360 degree visibility of your inventory and customer activity, in order to: •

Integrate online and offline shopping, allowing customers to research, buy and - if necessary - return goods anywhere

•

Sell more inventory at full price, increasing margin and reducing clearance markdowns

•

Create multichannel loyalty programs that incentivize customers equally, wherever they shop

•

Increase the product knowledge, recommendations and guidance available to store associates

1,000+ retailers in 46 countries are already using iVend Retail to give customers a consistent brand experience, and achieve higher full price sales with existing inventory levels

INSIGHT RETAIL #13 | MAY - JULY 2016

CUSTOMER SERVICE

Customer service during election year

uring electioneering period, our customers become sensitive and react to innocent or common answers from the supermarkets’ staff in ways that amaze and even shock them. Usually there is so much tension and hostility that staff members are caught up in the middle.

In many instances we have witnessed staff expressing opinions as individuals, which leads to the outlet being branded by consumers as belonging to one camp or another. This kind of branding sometimes leads to serious loss of business and even affects the staff in the communities where they live. In the year of the constitutional referendum, 2005, two opposing camps were represented by very common fruits in the supermarket: orange and banana. In one instance, in a region where the “BANANA” was dominant, it just happened to be out of stock. When asked for bananas, an innocent shop attendant simply replied, “Bananas are out of season here”. Unfortunately, the interpretation by the consumer was on a political level, meaning that this outlet was not supporting the ‘BANANA’ campaign. That outlet was nearly set ablaze but for quick intervention of the proprietor who somehow managed to offload a whole lorry of bananas and freely distribute them to the people milling around. Similar action took place in an ORANGE dominated area where an attendant

suggested that the consumer take a BANANA instead. This one was almost lynched, only to be saved by a politician who happened to be shopping in the outlet at the time! Customer service has to respond to the environment and current social climate in order to satisfy the discerning customers that visit our outlets on a daily basis. Furthermore, product stocking and range – which form a significant part of customer service, have to take into account the season and area of operation. The staff has to be disciplined not to give opinions in sensitive and controversial matters, lest they bring unnecessary conflict, loss of business and hostilities in the communities around them.

Of course if the outlet owners are publicly inclined to a particular camp, then that is different because then everybody would know their stand. Customer service staff and indeed all members of staff who interact with customers have to be very conversant with current affairs and where possible, management should provide direction in the form of periodic briefs and advisories. This is not only confined to politics but extends to sports, religion and all other aspects that directly or indirectly relate to your consumers. This year our country is gearing up for the 2017 elections and already the political temperatures are rising. Your members of staff obviously support one of the parties and occasionally comparative arguments develop amongst them. This should not be encouraged. Train them to be professional in handling customers and not allow themselves to be pulled into taking sides. In the end, we are one people and taking sides this early may just lead to economic alienation in future. I am not advocating stifling of freedom and human rights, but just writing as a businessman interested in growth. By Jasper Ouma, Chief Trainer - DMS Ltd

INSIGHT RETAIL #13 | MAY - JULY, 2016

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INSIGHT RETAIL #13 | MAY - JULY 2016

RETAIL SECURITY

How to Prevent Shoplifting S hrinkage, or retail theft, can have a serious impact on your bottom line. Goods worth millions are stolen from retailers every day. And while all businesses are susceptible to shoplifting, some like clothing, book and jewelry sellers are more susceptible to the vice.

Teaching your staff to spot and handle shoplifters properly is a crucial deterrent, which you can implement and design tactics to help prevent stealing. Here are 10 of the best ways your retail small business can deter shoplifters today: 1.

Maximize Visibility: Keeping an eye on merchandise is the first step in loss prevention. Place shorter displays close to the register and taller displays near the perimeter of the store so all merchandise is completely visible from your perch. Use mirrors to eliminate any blind spots, and be sure to keep your store neat and tidy, so employees can tell at a glance if something is missing or out of place.

other customers, wander aimlessly around the store, hang out in hardto-monitor areas, and repeatedly leave and return.

Share Your Shoplifting Policy: Define your shoplifting policy and communicate it to your customers with posted signs. Posting statements such as, “Shoplifters Will Be Prosecuted,” can act as an effective deterrent. Have Visible Security Systems: Whether you use security mirrors, faux cameras, motion sensors or security guards, make sure your security systems are visible to customers. Knowing you have security measures in place will stave off shoplifters.

when they come and go. Make sure registers are manned at all times and employees know to keep a watchful eye on customers. 6.

Lock It Up: Protect merchandise by monitoring and limiting access to display cases and dressing rooms. Requiring employee assistance with certain products provides an extra line of defense. Relocate Your Register: When cash registers are next to the entry and exit points in your store, customers are forced to walk past employees

INSIGHT RETAIL #13 | MAY - JULY, 2016

Be Aware: Employees should be alert at all times in your store, especially during opening, closing and restocking hours. Know which merchandise is most appealing to shoplifters (hint: small and/or expensive items) and place it in prominent areas, where employees can see it. Know How to Spot a Shoplifter: Certain behaviors should put your employees in alert mode. Watch for customers who appear nervous, stare at employees or

Have a Presence: Greet every customer and offer help throughout the shopping process. Not only will your presence remind potential shoplifters they’re being watched, but your vigilance will give you the added opportunity to track merchandise, especially items that go in and out of a dressing room.

Implement a Bag-Check Policy: Don’t allow customers to bring bags and backpacks into the dressing room area, as they can be used to hide merchandise. Welcome customers to check bags with an employee before they enter.

10. Inspect All Purchases: At the register, take a minute to doublecheck merchandise, like purses and baskets that can be used to store and steal additional items. Even if you’ve got a customer making a purchase, there’s still the chance an extra item or two ended up inside. While it may not be possible to completely eliminate shoplifting, you can certainly make it more difficult for wouldbe thieves to rob you. Follow these tips for store design and customer service to make your retail store less attractive to shoplifters. Courtesy to: http://www.staples.com/

BUSINESS TRENDS

Retail industry going social F acebook, Twitter and Instagram are some of the most popular social media platforms in Kenya at the moment, thanks to the surge in smartphones as well as affordable internet connectivity.

Users can now post and comment on any photo, video or just a status update on their timelines, consequently building conversations and forums. Unlike in the past where they were used to stay connected with friends and family as well as spread the word, social media has become a very powerful tool that any retailer can take advantage of.

through these buy buttons.

Online Promotions Kilimall, one of Kenya’s online marketplaces, recently ran a major promotion that offers up to 70% discount and vouchers on mobile phone accessories and smartphones.

By July 2015, Facebook had began testing the ‘Shop within Pages’ initiative which allowed retailers to set-up mini e-commerce sites within the Facebook app and showcase their products directly on their pages. The ability to add the ‘Buy’ button means the whole purchase process can take place without having to leave Facebook’s website.

Jumia Kenya, on the other hand, ran their second Mobile Week Reloaded promotion that offered discounts of up to 50% on certain phones from Infinix, Wiko, Tecno, Injoo and X-Tigi between 30th May to 3rd June 2016. Both promotions utilized Facebook, Twitter and Instagram to spread the word on the products offered and also had links that redirected a consumer to their main websites. Customers had a chance of inquiring about the products on the same Facebook and Twitter pages. OLX Kenya, another leading online shopping store, has also provided a platform where different entrepreneurs can showcase their products with an option of direct purchase on their website. With both images and texts, one can perfectly describe their product, the condition they’re in, price as well as terms of delivery. Customer inquiries and negotiations on such products are facilitated through OLX Facebook and Twitter handles, with staff ready to address any issue.

Retailers are hence urged to build online presence for their own retail units, regularly posting photos and perhaps videos of the products they have on sale. In-app purchases The ‘Buy’ button, a means by which mobile users can buy directly through the social channel itself, is being adopted and developed by various platforms to allow users make in-app purchases. This feature allows consumers to easily pay for things they happen to see while they’re browsing and interacting on their favorite sites, without being taken away from what they were doing. For retailers and entrepreneurs, this functionality increases their visibility, hence an extended reach in the market. Facebook and Twitter are both testing e-commerce within their applications

The face of e-commerce is rapidly changing into the social sphere as online shopping is now the preferred method of finding and purchasing products. Consumers want more convenience, an adaptable shopping experience that is smooth in all available devices as well as a better engagement through the research-to-purchase process. They want to be shown relevant products and don’t want to be pushed to a sale. This is why retailers and merchants dealing their products through social media should provide high quality and optimized product data that meets the requirements of each platform. It is also important to remember that consumers are looking for simplicity, relevancy, personalization and engagement during their social engagement with retailers.

INSIGHT RETAIL #13 | MAY - JULY 2016

RISK MANAGEMENT

Curbing retail loss with O

he retail market in Kenya is arguably the biggest booster of our economy. However, behind that trail of success lie enormous challenges, the main one being loss. Omega risk management and loss Prevention Company is one such organization that is helping retailers to mitigate their losses. We spoke to Mr. Elijah G. Kamau, the General Manager and gave us the following insights on the retail security and trends.

The major cause of retail loss is through pilferage cascaded by employees and it cuts across all major retail outlets whether multinationals or family owned business. In most scenarios the senior staffs collude to defraud the retail store with the junior staff and the scrupulous suppliers. Shoplifting comes in second and this could either be by the shoppers or the employees. Other common causes of loss include; fraud through fake payment vouchers and currencies, administrative errors among others which can be easily mitigated if proper controls and measures are undertaken by the retail store. With over six years of experience in the market, Omega has mastered the expertise of assisting retailers to control their shrinkage in areas as follows:Retail Loss Prevention Shrinkage control is an enormous issue for businesses and leakage occurs at store level and through the supply chain. OMEGA service in Retail Loss Prevention covers every area where shortages occur including; manifest errors, warehousing, transport, retail operations, internal theft and shoplifting. OMEGA develops customized shrinkage control programs that utilize physical staff and other measures to reduce shrinkage and protect profits. We believe that a solid loss prevention program is a critical component of a company’s success and is aware that no two businesses are alike. We meet with our clients and potential client’s leadership group and customize a program and/ or solutions that fit seamlessly into the culture of your organization. At OMEGA our Retail Loss Prevention solutions mainly focus on the loss of merchandise and cash. Our Loss Prevention Staff perform functions in the following areas: • • • • • • • • •

Receiving bay Dispatch section Staff entrance control Floor walking CCTV control Front end control Security screening Cashier services Packaging services

Mr. Elijah G. Kamau, General Manager Omega Risk Management

“Loss Prevention is the ability to identify the potential for a loss to occur at your business or property; we are committed to assisting our customers in controlling their losses through an aggressive risk detection and preventive program” “Retail Loss is about 10% globally and should be mitigated below 2% of total revenue” • • • • • •

Shop attendants Left luggage management Customer escort services Customer care Vehicle parking yards Use of undercover agents

Before deployment, OMEGA’s staff’s receives specific customer service training and are inducted into the retail environment. Our staff is trained to take a friendly and helpful customer oriented approach in their interactions with customers while remaining focused on identifying security breaches and protecting against loss to ensure a positive shopping experience. To this end, we have a number of integrated services which include:

1. Retail Surveillance When deploying staff for loss prevention measures, retail businesses must be mindful of the impact on the customer experience. OMEGA employees create a positive security presence INSIGHT RETAIL #13 | MAY - JULY, 2016

where our clients, their personnel and customers feel comfortable. The retail floor surveillance service serves to apprehend and deter shoplifters within the retail shop floor. OMEGA provides trained surveillance workers who prevent theft and crime. Typical duties of our personnel include using CCTV surveillance equipment, manning both the receiving and dispatch areas of the outlet, screening employees and merchandisers at the Staff entrance, providing manning security at the outlet entrance and parking bay; monitor customers and employees, interacting with customers in a safe, professional manner, working with law enforcement to assist in the prosecution of shoplifters, writing reports and working with the management. 2. Employee Investigations We conduct employee investigations when endemic internal theft, fraud and vendor collusion is suspected. In this area we cover the following: i. Retail employee theft ii. Document manipulation through false vendors, payroll, or other bookkeeping areas. iii. Missing assets or inventory. iv. Vendor collusion. v. Interview strategy for witnesses and/or suspects. vi. Obtaining written statements. vii. Case preparation for local law enforcement.

RETAIL RISK MNGT

RISK MANAGEMENT

Omega Loss Prevention Omega risk management OMEGA Risk Management

Our employee investigation services are designed to gather information needed to absolutely cease the crime and provide a written report analysis Solid Loss Prevention Program, on how our client can put measures to curb such critical to This a company’s successhow kind of losses. could be by, determining they occur, how many employees were involved, According to industry insiders, retail and how long the theft had been going pilferage or stock shrinkage from aon. formal

retail trade perspective is estimated to be 3. Retail Audit & Risk Assessment worth more than KShs. 200 billion. It has This process that enables OMEGA to understand been requirements, reported thatidentify the retail could client riskssector and construct be losing more than of KShs. billionloss awell blueprint for the delivery each3clients annually toand shoplifters among other prevention security program. We provide shrinkageRetail avenues. complete Audits and Risk Assessment

Reports within seven (7) working days and As retailersareas struggle to invest in the bestby recommend of control to be undertaken mechanisms aimed at reducing such huge retailers.

losses, OMEGA Risk Management, a

Riskretail Management and Losscan Prevention Our security assessments cover a lot of ground, depending on thesolutions’ size and complexity of Company is one such the company. Weretailers are sensitive toconsider the customer’s provider that could shopping and store operations when investingexperience in. “Our focus is on providing reviewing or designing physical security loss prevention, asset protection, risk for retailers.

management, safety awareness and investigative services to our clients,” Our Audit and Risk Assessment will provide vital explains omas Mbewa, company’s insight intoTh the strengths and the weaknesses of the Business Development Manager. physical aspects of our clients’ loss prevention

efforts. We will assist the of Loss Prevention Offiin cers aredevelopment trained current and future planning in areas such as: to carry out bags’ checking, covert i. Burglar/Fire/Robbery Alarms operations, CCTV ii. Electronic Articlemonitoring, Surveillance customer service, receipt checking, random iii. Safes and Airlock Systems stock counts, incident observation iv. Door hardware and key systems. and reporting, v. Panic Alarmsapprehension of shop vi. Lighting lifters, deterrence of potential theft, vii. CCTV investigations and court prosecution. viii. and Safety these officers receive PriorHealth to deployment,

specific customer service training that

4. Incident investigations is a unique combination of the client’s Which comprise of handling cases of customer care training and our own embezzlement and monetary loss. Tracking, technical training. They are to the surveying, investigating, andtrained guiding take a friendly and helpful customer customer on an ongoing basis vis-à-vis the oriented and approach while remaining employee the authorities. vigilant losses. service is currently Our Retailagainst Loss Prevention

There are erent the needs of retailers, geared at diff meeting specifically Supermarkets. We intend to expand types of Loss and diversify the scope of our loss prevention Prevention service offering in order to cover other retailers Officers; such as Clothing Stores, Electronics Retailers, the Chemist’s screeningetc among others. officers found

5. Manned Guard Services at the entrance OMEGA supplies trained loss prevention team thatiswill frisk bothand trained in both areas of that highly skilled clients and customer staff. Secondly, security service. receivers We provide keen whose responsibility receive stock motivated guards whois to provide professional partnership with our clients as we understand as well verify goods supplied in terms the importance of consistency and dependable of stock and paperwork. Another set of Staff within any organization. An assessment Loss Prevention Officers are stationed atof your targetswhich allow us to Mbewa complete a the business dispatchand section, Mr. requirement profile and assign the right person notes is where most marginal losses are for the job.

incurred mainly through vulnerable items suchIntegrity as electronics and other equipments. 6. Shopping Th ese offi cers will normally check and Integrity shopping is a specialized service reconfirm the goods/items bought focused on on recreating scenarios of our clients’ correspond the receipt. day to day to business. We conduct integrity shopping to ensure that employees are following Floor walkers and CCTV operators loss prevention procedures as outlined in the work hand in hand, first toprocedures. help in staff company’s standard operating

manage who at times leave retail floor

unattended. These Shopper officers also coordinate 7. Mystery/ Secret We provide the at mystery/ secret service efforts aimed curbing the shopper shoplifting to analyzewhich the customers’ shopping menace is rampant thanksexperience; to the assess employee reliability by meansbetween of mystery emergence of organised cartels shoppers different Th identities, the shop’swho staffassume and outsiders. e final at various times and using a variety of methods. category of the Loss Prevention Officers These inspections yield several cases of monetary are escorts who will normally help pull a theft by employees. client’s shopping trolley mostly to the car

however at aVetting shopper’s convenience. This 8. Employee and Background Research prevents getting in At OMEGAthe we shop’s believestaff that from the workforce of a and out atistimes withprecious an already company’s its’ most asset;stolen however dishonest Staff can bring about good or waste man hours inthe thecollapse name of ofan otherwise business/company through escorting healthy a customer. theft, bribery graft and other corrupt practices. We will Outsourcing offer a full Staff vetting service either for Staff pre-employment or for existing Staff. Mr. Mbewa notes that other than being

ableSecurity to manage a retailer’s risks, retail 9. Audits

outsourcing is the way to go taking into

At OMEGA we believe that the first line of defense against criminal activity is for a company to be aware of its vulnerabilities and exposure to risk. We will provide our clients with Security audit services which will be a detailed and thorough assessment of the existing security procedures and systems operating within their facilities. Our Professional Security Experts will assist our clients in making their company’s safeconsideration and secure for your employees and customers. that a retailer’s core

business is not staff employment. Other 10. Event Management than an affgrowing ordable areas option, it security One ofbeing the fastest in the reduces the high chances of staff industry is Event Management; this collusion covers the as well asofmanaging other human provision loss prevention and security services resources issuesofsuch as medical, to a wide range clientele includingpension, Sporting events, exhibitions, Stores amongst launches, overtime, transport Retail and welfare Festivals, concerts and other high profile other factors. Global research, not events such as Corporate Annual General Meetings. limited to the retail sector has revealed that companies who prefer to outsource Omega has put in place measures to evade some of their operations have reported fraudulent plans by our Staff through hourly reduction in losses of up to 60%. rotational

practices

that

ensure

intense

supervision management of its Staff at all But even asand OMEGA Risk Management time while at workplace where seeks to penetrate into or theinstitutions; supermarkets we havethe done placement,. This reduce Staff arena, company plans towill introduce and supplier collusion at any given time for its services in other businesses such as employees who are not stationed at one place. oil where hugeintense losses training are being All marketers Omega Staff undergo on reported in LPG and lubricants’ section, standard operational procedures which provides manufacturers’ at the stock-taking in depth procedures across all stages with an level, distributors where huge losses are objective of risk management, loss control, improve operational safety reported while goods areand in security. transit as well as the motor industry (spare parts As retailers continue to grapple retailout loss, section) where mechanics arewith forking OmegaatRisk aspiresemployers. to reduce the more theManagement expense of their

losses from about 10% to approximately 2%. It is “At OMEGA, we believe that a solidembrace however our hope that more retailers the loss prevention measures mitigate the loss prevention program is ato critical losses and training on Standard Operational component of a company’s success. Aware Procedures (SOP’s) which we that no two companies arehave thedeveloped same, for retailers which cuts all verticals or retailers our approach is toacross develop customized – supermarkets(FMCG), Furniture, Apparelssolutions that fit into the culture of a Clothing outlets, Hardware, Fuel Stations, specifi c organization,” Mr. Mbewa says. Hospitality industry (Hotels & Restaurants ) among others.

Survaillance

Audit, Risk and Security Assessment

Event Security

Vetting and Background Research CCTV monitoring

ISSUE 05 | Q1 - 2014 | 11 INSIGHT RETAILINSIGHT #13 | RETAIL MAY - |JULY 2016 15

RETAIL TIPS

Strategies to Boost Your Retail Sales

elling in today’s retail market has become tougher, as consumers continue being savvier and better informed unlike the recent past. Although marketing can impact the number of people that walk into your store, it is certainly irrelevant to entirely focus on new clients, because, your sales projections do not solely depend on the number of shoppers who show up at your doorstep. There is an abundance of techniques that can enable retailers meet their target sales and the best approach must capitalize on the shopper who enters the store. For instance, there is need to maximize on the shopper who has entered your store to not only purchase one item but everything he needs. Here are some simple actions that retailers can undertake to increase their revenue. Understand Your Customer It is your business to know what your customers needs are at various moments. Be it, during Christmas, back to school period or seasonal timings. This will make it possible for you to give them what they want because customers determine your success. You can do this by engaging them to know their shopping experience either through, feedback forms or suggestions. This will in turn influence them to continue shopping at your store because they believe they have made an impact in developing the store.

Get acquainted With the Industry’s Trends You can gain the greatest competitive edge if you have an intimate knowledge of your business. Commitment to learn about new technology, trends, and the best performance practices, will set you above

the pack. Having a clear vision and well established goals, also push you towards success. Train Your Staff Exceptional shopping experiences begin with exceptional employee skills. It is very important for your staff to know how to handle people immediately as they walk in. They must be able to engage the customers genuinely as they identify their needs and listen to their concerns. When you build rapport and connect with their customers, it keeps them from browsing for better deals and you will have created a relationship that makes it easier for you to suggest adds-on because you are trusted. Sell Value Although it is easy to mark down items and steer shoppers towards a cheapest option, the cheapest option at times is not the

shopper’s best option. However, with proper understanding of the products, employees can re-establish the value of the product in the customer’s mind which could increase sales. Control Your Inventory All retail stores need to manage inventory. This will help to maintain a proper balance between the right amount of merchandise and probable customer demand. Without adequate control, slow moving inventory becomes dated and could be very costly. Have a Customer Loyalty Program Customer loyalty programs increase customer happiness and retention. For example, by using a simple point system, customers work towards attaining a certain amount of points, to redeem their rewards. Sales Promotion Sales promotion is a short term promotional technique designed to increase sales. Customers like it because they feel like they are getting a better deal. This could be a winwin situation with more money at the till by the end of the day. Displays There are a lot of ways your retail store displays can be your silent salesperson. The trick is to make sure your display include some of the basics like: • Changing your displays often - moving them to keep them from getting stale. • Put clear price tags – Make sure all the stock is priced so a customer does not have to necessarily ask.

INSIGHT RETAIL #13 | MAY - JULY, 2016

COVER STORY

REACH YOUR TARGET AUDIENCE AFFORDABLY

Have a Good Relationship with Suppliers The longer a supplier provides a customer, the better their understanding and working relations. This allows for better integration of business which leads to increased efficiency and could reduce internal workloads. Embrace Social Media Social media has become a serious platform for business. It is a low cost channel that can help you build your brand as you drive sales. Up Sell And Cross Sell Up selling and cross selling can really help to bring your numbers up. For instance, shoe shops ask if you will have a particular shoe polish to go with the kind of shoes you have bought. When done properly, up sell adds value to a customer’s experience.

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Ask For Help When You Need It Remember, getting results is what counts! Don’t be too proud to ask for help, we all need help sometimes. It is important to recognize that what you don’t know can end up costing you money, hurt the odds of success, and greatly reduce the chance of achieving your business goals. Hiring an expert with specialized skills can be the most profitable decision you can make to protect both your business and financial future.

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Develop a Distinctive Image Your image is important and is a function of your marketing efforts and materials. Customers create their perceptions of your business from your name, web site appearance, store location, products, prices, visual merchandising, signs, displays, business cards, newsletters, advertising material, customer service and anything else that relates to your business.

ISSUE 08 / OCTOBER - DECEMBER 2014

RETAIL BUSINESS INTELLIGENCE EDITION 013 | MAY - JULY, 2016

’

Unlocking Africa’s retail opportunities

• Butchers’ Workshop & Equipment

Use Sound Management Practices As a store owner, you are also a manager. You have to make decisions, offer customer service, manage time and resources, and know how to merchandise and run the business better than anyone working for you. Give your employees the opportunity for growth, treat them fairly, pay them what they’re worth, and they will help make your business successful.

RETAIL BUSINESS INTELLIGENCE

DEFINING REGIONAL STRATEGIES

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RETAIL BUSINESS INTELLIGENCE EDITION 012 | FEBRUARY -APRIL 2016

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Keep Good Financial Records It is said that, “if you do not know where your money is going, it will soon be gone”. Good financial records are like the instruments of an airplane, they keep you posted on your height, direction and speed. Without them you are flying blind with no controls to guide you to your destination.

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Use point of sale displays – this is to make a particular product stand out and help push up sales. Move the display around – by this a customer can trail new products and you could be surprised by how old products have become popular again.

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TECHNOLOGY INNOVATIONS & TRENDS

RETAIL STATISTICS 2016 MULTI - NATIONAL STORES

RETAIL STATISTICS 2014 1 Branch

1 Branch

8 Stores Coming Soon

TIER 01

(HAVING 15 BRANCHES AND ABOVE)

60Branches Branches 52 15 Counties (Ke) 12 Counties 4 Countries 4 Countries

20 Branches

36 Branches(Ke) 5 Counties 71 Counties Countries 3 Countries

TIER 02 TIER 02

(HAVING BETWEEN5-15 5-15 BRANCHES) (HAVING BETWEEN BRANCHES) Chandarana Supermarkets

10 Branches 2 Counties

Chandarana Supermarkets Saltes Supermarkets Saltes Supermarkets Cleanshelf Supermarkets Ukwala Supermarkets Eastmatt Supermarkets Tumaini Supermarkets Selfridges Supermarkets Ukwala Supermarkets Khetia Supermarkets Tumaini Supermarket Magunas KhethiaSupermarkets Supermarkets Magunandu Supermarkets Powerstar Supermarket Mulley Supermarkets Mulleys Supermarkets Mathai Supermarkets Cleanshelf Supermarkets Budget Supermarkets

8 Branches 78Branches Branches 6 Branches 8 Branches 6 Branches Branches 68Branches 68Branches Branches 6 Branches Branches 5 8Branches 5 8Branches Branches 5 Branches 7 Branches 5 Branches Branches 5 6Branches

2 Counties Counties 2 2Counties 4 Counties 5 Counties 3 Counties 5 2Counties Counties 5 Counties 3 Counties 3 Counties 4 3Counties Counties 4 Counties 2 Counties 1 County 4 Counties 4 Counties 4 3Counties Counties

Eastmatt Suppermarkets

6 Branches

3 Counties

Selfridges Supermarkets

6 Branches

3 Counties

Quickmart Supermarket

6 Branches

4 Counties

MORE STATS INSupermarkets THE EAST5 Branches AFRICA Mathai 4 Counties RETAILERS Budget Supermarkets DIRECTORY 5 Branches 3 Counties & SUPPLIERS GUIDE Society Stores

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6 Branches

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38 Branches Branches 30 12 Counties (Ke) 13 Counties 1 Country 1 Country

56 Branches 14 Counties 2 Countries

TIER 03 TIER 03

(HAVING BELOW4 BRANCHES) 4 BRANCHES) (HAVING BELOW Ngooni Supermarket 2 Branches 1 County Kassmatt Supermarkets 4 Branches 2 Counties Karrymart Supermarket 4 Branches 2 Branches Setlight Supermarkets 3 Counties1 County Nairobi Mart 2 Branches Quick matt Supermarkets 4 Branches 3 Counties1 County Jacmil Supermarket

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INSIGHT RETAIL #13 | MAY - JULY, 2016

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Going Digital To Enhance Shopper Experience Shelving Solutions

By Elizabeth Mbugua, AC Nielsen Get your copy

Milk Dispenser’s

retailers and manufacturers can add value and differentiation by providing digital tools to help consumers take control of their shopping experience while also increasing sales potential.

indicate that though only a small fraction of consumers are already using such features today, willingness to use them in the future is high.

Other digital enablement options include giving mobile coupons and allowing shoppers to create shopping lists.

Availability of facilities that allow customers to check out on their own will make long queues a thing of the past and enhance the shopper experience as well. For the retailer this will also mean reduction in the number of traditional check out stations required in each outlet therefore reducing operational costs.

competitive retail environment, Studies by Nielsen globally delivered“Into ayour doorstep by subscribing toconducted the magazine

f device-driven consumers turning to online shopping options give brick-and-mortar retailers cause for concern, they would do well to remember that e-commerce is only one part of the digital picture. A complete digital strategy includes interaction at every point along the path to purchase, Others including Include finding stores, making shopping lists, checking prices, researching • Kenya Ranking products, sharing content and purchasing.

• Renova Ltd

These touch points occur both in and out of stores, and consumers are Solutions increasingly Risk Management using technology to simplify and improve the process. In-store digital enablement options can bring the ease, convenience and personalization of online into brick-andmortar stores. Others Include

• Hipora Business East Africa Incorporating digital strategies into the • Jeff Hamilton in-store experience is not just a nice-to-have; these options can increase time in store, engagement levels, and basket size and Retail Training Partners shopper satisfaction.

“At present, shoppers do all of the work putting the pieces together to arrive at their final purchase decision,” said Patrick Dodd, president, global retailer vertical, Nielsen.

Technology Solution Providers (Hardware & Software’s)

Another way to improve the in-store Use of mobile in particular can tip the experience and at same time the reduce scales in favour of increased shopper retailer cost is to put more control in the LIPAcontrol, NA MPESA TILL NO. 248816 empowering them to shape the shopping hands of your customers—literally. experience more than ever before.” While self check -out is still a very novel Security Solutions There is a lot of room for retailers within concept in Sub Saharan markets, it is a (CCTV + Anti Theft Solutions) the region to explore options such as in-store growing trend in the developed markets and Wi-Fi availability that allows consumers to today, 22% of global respondents say they use receive info on offers, product availability, self-checkout, and nearly two-thirds (65%) are prices and so on. willing to do so in the future.

Deli & Bakery Solution providers

Retailers should also consider an option that allows shoppers to download loyalty program apps on their mobile phones where they would be able to receive information on offers and accumulate shopping points. Annual subscription @ Ksh. 2,645 Asset Financing Not only will this allowfor retailers save on FOURto consecutive issues costs associated with making and upgrading loyalty cards, it will also allow shoppers fast sign up into the loyalty programs without the rigours of following up to get physical cards ASSET LEASING SPECIALISTS issued to them.

INSIGHT RETAIL #11 | OCTOBER - DECEMBER, 2015

INSIGHT RETAIL #13 | MAY - JULY 2016

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