WOOLWORTHS CONTINUES TO PARTNER WITH FOODFOWARD SA TO FIGHT HUNGER IN SOUTH AFRICA

Image: BizCommunity

Woolworths, one of the big retailers in South Africa, has reaffirmed its commitment to fighting hunger by extending its partnership with FoodForward SA (FFSA) for another three years. By renewing this collaboration, Woolworths is investing R3.45 million to strengthen FoodFoward SA’s initiatives in food distribution and community support.

Woolworths’ Role in Partnership with FoodForward SA

Over the past six years, Woolworths has been dedicated to supporting the FFSA, contributing a total of R6 million towards efforts to alleviate food insecurity across the nation. This extended partnership not only highlights Woolworths’ ongoing commitment to Corporate Social Responsibility (CSR) but also underscores its strategic alignment with sustainability goals and community welfare.

About 14 million out of 61 million South Africans go hungry every day, not because there is a food shortage in South Africa but because 1 third of people in the country cannot afford to buy food and feed themselves. The partnership with Woolworths and FFSA ensures that healthy quality food reaches an approximate number of 920,000 needy people daily, impacting access to healthy nutritious meals.

Image: FoodFoward SA

FoodForward SA changes South African’s lives through Woolworth

In 2009 FFSA established a platform called FoodShare which efficiently manages surplus food donations from the Woolworth stores nationwide. FFSA distributed an impressive 21,760 tons of food, with Woolworths’ contributions accounting for 65% of this total through the FoodShare platform. This equates to approximately 56.6 million meals provided to those in need, demonstrating the huge impact of corporate partnerships in addressing food insecurity.

Beyond food distribution, Woolworths’ support extends to FFSA’s initiatives in youth empowerment and skills development within the food supply chain. Since its commencement in 2019, FFSA’s supply chain internship program has trained over 60 young adults in essential skills such as warehousing, stock management, and logistics. This program, which initially began in Cape Town, has expanded to regions like KwaZulu-Natal, Gauteng, and Rustenburg, offering employment opportunities to 19 interns who have successfully transitioned into permanent roles within the organization.

Zinzi Mgolodela, Director of Corporate Affairs at Woolworths, expressed gratitude for the extended partnership, emphasizing its alignment with Woolworths’ broader sustainability agenda and commitment to social inclusivity. She highlighted the positive outcomes of the collaboration, including reduced food waste, lower carbon emissions, and enhanced community resilience.

WOOLWORTHS’ ONLINE SALES SURGE AMIDST SA’S CHALLENGING ECONOMIC LANDSCAPE

South African retail giant Woolworths experienced a significant boost in online sales during the first half of the 2024 financial year, signaling a shift in consumer behaviour amidst a challenging economic landscape. For the 26 weeks ending 24 December 2024, online sales in fashion, beauty, and home categories soared by 26.9%, contributing 5.4% to total South African sales. This growth was complemented by a remarkable 46.6% jump in online food sales, driven by the retailer’s on-demand delivery service, Woolies Dash.

Woolies Dash, introduced in December 2020, has expanded its coverage, intensifying competition in the on-demand delivery sector previously dominated by Shoprite Checkers’ Sixty60 and Pick n Pay’s Bottles (now known as PnP Asap!). On the other hand, Spar has also entered the space with its on-demand service, named Spar 2U, adding to the competitive landscape.

Despite facing stiff competition from Sixty60, Woolworths strategically targeted affluent South Africans, leveraging its focus on enhancing stores and product offerings. However, the disposal of the high-end clothing brand David Jones significantly impacted Woolworths’ financial performance. Excluding David Jones, the group’s profit from continuing operations fell by 10.9%, reflecting the complexities of operating in a unstable market.

The growth in online sales highlights the evolving consumer preferences in South Africa, especially in the wake of the COVID-19 pandemic. Shoprite’s Sixty60, the market leader, reported a stunning 63.1% sales growth, reflecting the growing demand for convenient shopping experiences.

Although Woolworths’ success in the online space, particularly in food and lifestyle categories, highlights its ability to adapt to changing market dynamics, challenges persist. The company is still reporting a 7.5% decline in half-year earnings due to subdued consumer spending and external factors like energy shortages and logistical disruptions.

The broader retail landscape in South Africa is witnessing intense competition, with major players like Checkers, Pick n Pay, Woolworths, and Spar competing for market share. Additionally, other similar online platforms like OneCart and independent apps like Zulzi further contribute to the competitive landscape.

Woolworths Shopping Bag

Looking ahead, Woolworths remains focused on navigating the complex economic environment by enhancing its online presence and improving its product offerings. Despite the challenges, the company’s commitment to innovation and customer-centric strategies positions it well for future growth in an increasingly digitalized retail landscape.

Furthermore, Woolworths’ impressive performance in online sales reflects the changing retail landscape in South Africa, driven by evolving consumer preferences and technological advancements. While challenges persist, the company’s strategic initiatives and focus on customer satisfaction lay a solid foundation for sustained growth amidst a dynamic economic environment.  

The impact of xenophobic attacks on South African brands.

You are probably wondering what the xenophobic attacks have to do with brands. Well… the answer is EVERYTHING, because in this world nothing ever works in isolation. The impact may be direct or indirect and its magnitude may differ but the bottom line is that there is an impact. According to Otto Sterlik founder of the Protea Group, xenophobic attacks not only have an effect on the tourism industry but the entire South African economy.

A report by Ernst & Young states that Africa is an important growth market that no consumer products business can afford to ignore. More and more global companies are establishing business in Africa. South Africa, being one of the largest economies in the African continent, is often used as a “gateway” to Africa. The companies first set up base in South Africa before penetrating other African markets.

South African companies are also making inroads to the entire African continent as part of their growth strategy. The spell on fellow African brothers and sisters is therefore not only detrimental to the foreigners but to the companies that have already established themselves in other African countries and those that have plans to enter other African countries.

Over the weekend I received a very disturbing voice note from a friend. The man speaking on the voice note (whom I assume is a Nigerian national) is calling on all other African nations to “bomb” South African businesses in foreign countries if the South Africans don’t stop attacking foreigners. Last week, the MTN Head Office in Abuja, Nigeria had to shut down after they were invaded by anti-xenophobic protesters.

Nigeria is MTN’s largest and most profitable market. In 2013, MTN Nigeria reported more profits than MTN South Africa.

MTN is not the only South African brand that could be adversely affected by the wake of the xenophobic protests. Shoprite, a leading retailer in South Africa has about 7 stores in Nigeria compared to the 600 store in South Africa. The giant retailer sells more bottles of Moet and Chandon Champagne in Nigeria than in all liquor  South Africa. This is an indication of how significant the Nigerian market is.

Nigeria is not the only market that South African brands have successfully established business in. Countries such as Angola, Tanzania, Botswana, Mozambique and so forth, have also opened their boarders for South African brands that are doing quite well.

If the xenophobic attacks continue, the growth of brands such as Standard Bank, DSTV, Woolworths, Tiger Brands and many others will be impeded. The brands will lose out on the investments already made in other African countries.  South Africa’s GDP will drop and ultimately more people will become unemployed. The consequences are just undesirable.

South Africans need to unite against the few culprits of the xenophobic attacks to prevent South African brands being attacked in other African countries.  I would also like to urge the South African brands to use their influence in their respective industries to educate and help curb the xenophobic attacks.

Kwame Nkrumah was famously quoted as saying “the forces that unite us are intrinsic and greater than the superimposed influences that keep us apart”. Unemployment, corruption and drugs are all global problems. It is time for Africa to unite, because we are one!

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