Arthur Goldstuck | CEO | World Wide Worx | Editor-in-chief | Gadget.co.za | mail me |
Sometimes, it takes an outsider to allow South Africans to recognise that SA retail innovation is positive in their own country.
In the retail space, massive investments are being made into one-hour grocery deliveries and “experience stores”. These are often pointed out as examples of retailers fighting for market share, relevance, or even survival.
South Africa has unique challenges. There are the obvious challenges around currency, talent, and investment. Sometimes the ports are not as efficient as my retail friends would want them to be. The metrics by which they are measured also sometimes change.
– Jeff Warren, Vice President for Oracle
Shared optimism and innovation
Due to load shedding, there were several programmes that had to be pushed back by six to nine months. This was because retail partners had to prioritise getting generators into stores, keeping the lights on, and ensuring a safe environment for customers. But there is consistent optimism and a willingness to invest. These are temporary obstacles, and they can be overcome.
The potential of SA retail innovation is there. The belief that growth will continue is a shared optimism with the customers. This applies equally to technology investment and store innovation. Massive upgrades have turned many South African retail outlets into an “experience”, where shopping is almost a by-product.
For example, major Oracle retail customers in South Africa include Woolworths, Cape Union Mart, Mr Price, and Ackermans. There are unique insights when comparing these to global clients. The reality is that they all think globally.
There is a really robust community of retailers in South Africa that are part of the larger global user community. As such, South African retail is well-plugged in with what’s going on globally. This has a direct impact on retail operations.
The potential of innovation and technology
Historically, the retail community would have attacked its challenges by having somebody locally in South Africa implement a system. COVID-19 changed that, as now businesses tap into a global network of people to transform. Retailers realise talent can be anywhere in the world, and by leveraging that talent, they can help develop skills locally.
We’re doing a massive transformation across merchandising and supply chain for one of the largest retailers in South Africa. The programme manager is in the UK, the executive sponsor is in France, the product team is in the US, and part of the project team is in South Africa. The project has met every milestone and exceeded the C-suite’s expectations, staying on schedule.
In conclusion
Retailers are not only optimistic about growth in South Africa, but also about the potential of technology.
What is exciting is the investment I’m seeing retailers making, as we learn about what Artificial Intelligence (AI) can do for our business. With better visibility and transparency of data, we see new opportunities. This means there’s a need for new skills within the retail sector.
There’s a real commitment to invest in developing those skills locally. The goal is to grow that talent base and leverage insights from a global perspective.
