Measuring the bottom end of retailing - a Silo Analytics Report
Issued by Jessica De Bufanos, Head Analyst at Silo Analytics - May 17th, 10:33
The black hole of data analytics
The South African retail sector is diverse, fragmented and fiercely competitive. The lines between branded retail, independents and wholesalers are increasingly blurred where all retail segments are now competing on route to market, quality, location and above all, PRICE. As a result, the Independent & Wholesale Sector is showing excellent growth opportunities and is giving branded retailers a run for their money.
The independent & wholesale sector; although rich in opportunity is seen as a ‘black hole’ with respect to data. Data insights, is, therefore, a difficult opportunity to quantify and measure. Silo Analytics holds a unique data set* which enables the exploration and measurement of this largely unmeasured sector.
Our latest Silo Commodities Basket Report** shows the independent and wholesale sector is growing promotional frequency by 15% YOY.
The branded retail sector, however, is showing a decline of -2% YOY. The statistics back up inferences that the independent sector is growing. The growth /decline in promotional activity has significant volume implications for both sectors.
Across the Silo Commodities Basket, the independent and wholesale sector promotes the basket as 1% cheaper, on average, than the branded retail sector, with cooking oil and maize showing the most differentials in price between the sectors. The price warfare between retailers and sectors is measurable with significant volume implications for both sectors.
*Silo’s complete promotional database across each FMCG category in both branded retail, independent and wholesale retailers allow us to accurately measure price, retailer and brand share across the retail sectors relative to their promotional frequency.
**Silo Commodities Basket Report measures price, inflation and promotional frequency across 11 promoted commodity categories, namely: Rice, Maize, Flour, Tea, Sugar, Mayonnaise, Margarine, Cooking Oil, IQF Chicken, Peanut Butter and Jam.
Silo’s online and up-to-the-minute PriceProbe data tool enables subscribers to track current promotional prices across all FMCG categories, brands and SKU’s. This is proving to be an invaluable weapon in the guerrilla price warfare that is their trading environment.
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