LONDON (Reuters) &#8211; British clothing and food retailer Marks &amp; Spencer (<a href="https://www.reuters.com/companies/MKS.L">MKS.L</a>) said on Monday it planned to cut 950 jobs as part of a restructuring, dealing a further blow to a sector that has already seen thousands of redundancies during the COVID-19 crisis.



M&amp;S said it had started a consultation with its employee representative group and had set out its intention to first offer voluntary redundancy to affected workers across central support functions, central operations and property and store management.



The cuts form part of M&amp;S’s plan to move to a “leaner, faster retail management structure,” it said.



Britain’s retailers, already struggling with high rents, business taxes, tight margins and online competition, were particularly hammered by the coronavirus lockdown.



Earlier this month health and beauty chain Boots (<a href="https://www.reuters.com/companies/WBA.O">WBA.O</a>) announced 4,000 job cuts, while department store chain John Lewis said it would likely shed 1,300.

london

Britain’s M&S plans to cut 950 jobs in restructuring

JOHANNESBURG (Reuters) &#8211; South African retail sales rose 2.6% year-on-year in November following a revised 0.4% increase in October, Statistics South Africa said on Wednesday.



On a month-on-month basis, sales were up 3.1% and up 1.2% in the three months to the end of November compared with the same period last year, the statistics body said.



Reporting by Olivia Kumwenda-Mtambo; Editing by Alexander Winning

South Africa’s retail sales rose 2.6% year/year in November

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="555" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1110x555.jpg" alt="" class="wp-image-353226" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1110x555.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-768x384.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1536x768.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-696x348.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1068x534.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-840x420.jpg 840w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1920x960.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet.jpg 2000w" sizes="(max-width: 1110px) 100vw, 1110px" /><figcaption>E-shopping Online Business Promotion Shopaholic Concept</figcaption></figure>



By Derek Cikes



Consumer demands for a frictionless, personalised experience which caters for their lifestyle needs are set to drive online retail trends in 2020.&nbsp; The result is a focus on creating a customised experience that supports and enhances shopping in the virtual environment, facilitating the buying journey.



Derek Cikes, Commercial Director at payment fintech Payflex,
shares the top 8 online retail trends for the year ahead.



<ol><li>Omnichannel retailing</li></ol>



As shoppers expand their touchpoints with a brand, the online and bricks-and-mortar channels will increasingly merge into a seamless omnichannel experience within the brand ecosystem.&nbsp; In order to facilitate this, merchants need to provide shoppers with an integrated shopping experience across all channels that allows shoppers to browse, shop and return items across in-store and online channels. 



 2. Pop-up Shops



2020 will see pop-up shops expanding beyond
brand awareness to provide shoppers with a curated shopping
experience.&nbsp;&nbsp; Leveraging the scarcity and exclusivity principles
associated with these temporary storefronts, shoppers will have access to novel
or limited brand items.&nbsp; Brands in turn will have the opportunity to
engage one-on-one with their customers while collecting shopper data.



This intimate connection will also enable
pop-up stores to take on a new position of facilitating brand experiences
rather than only focussing on the commercial aspect of a retail pop-up store.



“By providing a compelling pop-up experience, brands are able to differentiate themselves and establish a unique relationship with their target market,” says Cikes.



 3. User experience



User experience will be optimised by levering online
channels. Simplicity is the key, enabling the user to effortlessly navigate the
website and find and acquire the desired items.



This includes reducing the number of
steps to complete a payment transaction such as the seamless single click
checkout process which can dramatically increase sales conversions.&nbsp; 



“Our experience has shown that the Payflex 1-click checkout process can reduce cart abandonment by a whopping 40% &#8211;&nbsp; a huge benefit for ecommerce merchants,” says Cikes.



 4. Online security



Concerns about online security and privacy are one of the key challenges to growing online sales in South Africa.&nbsp; To provide comfort to shoppers, 2020 will see a focus on creating a secure online infrastructure and being transparent about the use of data, so that shoppers feel comfortable sharing their financial information.&nbsp; 



 5. The customer journey



The year ahead will see online stores
optimizing the customer journey through each touchpoint with the brand.&nbsp;
This will translate into establishing a strong online communications infrastructure,
supporting customers through a variety of online and social media platforms
throughout their purchasing journey.



This optimizes the shopper’s online experience, allowing the next steps to follow naturally &#8211; increasing conversions, customer retention and eventually brand advocacy.



 6. Payment choices



Consumers are increasingly wary of incurring
debt to purchase lifestyle goods, which has opened the door to alterative
non-credit pay later solutions, such as Payflex.&nbsp;&nbsp; 



“Customers want more control of their spending, encouraging the online retail industry to incorporate payment experiences which meet their needs, such as the free spending solution from Payflex which can boost sales by 20-30%,” says Cikes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="624" height="330" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1.jpg" alt="" class="wp-image-353225" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1.jpg 624w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1-300x159.jpg 300w" sizes="(max-width: 624px) 100vw, 624px" /></figure>



 7. Online Ubiquity



The increase in social media retailing demands a pervasive online brand presence where shoppers can engage in a seamless experience with the brand and buy products directly from social media channels in a contained, accessible environment such as Instagram.&nbsp; 



 8. Machine Learning



The year ahead will leverage the
capabilities of artificial intelligence and machine learning to provide more
personalised shopping experiences.&nbsp; By using data and search history,
merchants can curate products and services specific to the shopper’s needs and
likes.&nbsp;&nbsp; This results in being able to customize each shopping
experience such as with sites like Amazon, where automatic suggestions are made
in addition to the purchase or music sites such as Spotify or Deeza which
leverage machine learning to provide a personal playlist based on a user’s data
and online search and listening history.



Final Comments



The
inter-relatedness of consumer demands and technological innovations creates one
of the central themes of online retail in 2020 – a symbiotic relationship
between shopper and technology.



“This will play out in new
avenues of innovation which meet consumer demands while leveraging technology
to create a meaningful online experience, moving shoppers further along the
customer journey to facilitate successful conversions,” concludes Cikes.

E-shopping Online Business Promotion Shopaholic Concept

Top 8 retail trends to watch in 2020

JOHANNESBURG (Reuters) &#8211; South African retail sales rose 2% year-on-year in July following a 2.4% increase in June, Statistics South Africa said on Wednesday.



On a month-on-month basis, sales were up 0.2% and rose 2% in the three months to the end of July compared with the same period last year, the statistics body said.



Reporting by Olivia Kumwenda-Mtambo; Editing by Toby Chopra

South Africa’s retail sales up 2% year-on-year in July

JOHANNESBURG (Reuters) &#8211; South Africa’s market regulator has fined retailer Steinhoff a record 53 million rand ($3.6 million) for making “false, misleading or deceptive statements” to the market, the company said on Thursday.



Steinhoff disclosed the hole in its accounts in December 2017 which shocked investors and wiped more than 200 billion rand off its stock market value.



The company said the penalty would have been 1.5 billion rand, but was reduced in recognition of the fact that the fraud was perpetrated by former employees and that the company had cooperated with regulators.



“Even after this reduction it remains the largest single fine ever imposed by the FSCA,” Steinhoff said in a statement, quoting the regulator.



The Financial Sector Conduct Authority (FSCA) ruled that multiple, significant restatements of the company’s accounts after December 2017 supported the conclusion that Steinhoff failed to meet its obligations under the Financial Markets Act.



Steinhoff CEO Louis du Preez said there were no more further FSCA enforcement actions outstanding against the Steinhoff.



“We are pleased that the matter has now been brought to a conclusion and that the FSCA has recognised our full co-operation with the investigation,” said Preez.



An independent report by PwC released in March found Steinhoff had overstated profits over several years in a $7.4 billion accounting fraud involving a small group of top executives and outsiders.



($1 = 14.6256 rand)



Reporting by Tanisha Heiberg; Editing by Mark Potter

Steinhoff has been fined R53 million for misleading markets

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On the back of the retail figures that was released yesterday CNBC Africa reporter Kopano Gumbi is spoke to Evan Walker, Co-manager of the 36ONE Equity Fund for his analysis of the figures.

Why TFG is outperforming other retail shares

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On the back of the retail figures that was released yesterday CNBC Africa reporter Kopano Gumbi is spoke to Evan Walker, Co-manager of the 36ONE Equity Fund for his analysis of the figures.

Why 36ONE has a contrarian view on Absa

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The fourth quarter results for the RMB/BER Business Confidence Index has been released showing the lowest numbers in 2018. This after the previous two quarter index reflected almost average business confidence picking at just over 40 regarded as neutral. The latest index shows the Business Confidence to be standing at a low 31. Ettienne Le Roux, Chief Economist at RMB joins CNBC Africa for more.

Business confidence falls in fourth quarter

JOHANNESBURG (Reuters) &#8211; Steinhoff’s creditors agreed to hold on their debt claims for three years, the embattled retailer said on Friday, throwing a lifeline for the South African retailer caught in the throes of an accounting scandal.
The parties will now seek to implement the restructuring within three months, the retailer said in a statement. Steinhoff’s shares initially rose 3 percent in response to the news, but later pared its gains to trade down 1.69.
It is fighting for survival after revealing multi-billion euro holes in its balance sheet that wiped more than 90 percent off its market value and forced it to sell assets to fund working capital.
Reporting by Nqobile Dludla; Editing by James Macharia

Lifeline thrown at Steinhoff as creditors agree to debt lock-up, what you need to know

Kenya’s Nakumatt has filed for administration after a slew of petitions from creditors owed millions of dollars by a company that started life more than 25 years ago as a small Rift Valley bed shop and became East Africa’s biggest supermarket chain.
<img loading="lazy" decoding="async" class="aligncenter wp-image-288977 size-full" src="http://cnbc.africa/wp-content/uploads/2017/10/Nakumatt_Nairobi_Kenya_Flickr.jpg" alt="" width="1024" height="576" />
One source close to the company said Nakumatt, whose flagship Nairobi store was destroyed in the 2013 Westgate attack by Somali militants, said it owed creditors including landlords and suppliers as much as 20 billion shillings ($193 million).
In January, the managing director of the chain, Atul Shah, told Reuters the debt then stood at $150 million.
By comparison the privately-owned company, which employs around 4,000 people, had assets of just 2 billion shillings, the source said. Nakumatt’s main rivals are local unlisted firms and French retailer Carrefour, which entered the Kenyan market last year.
More and more Nakumatt creditors have gone to court in recent months seeking to wind up the business due to non-payment of debts.
A group of 19 landlords who have rented out space to Nakumatt outlets have sued the company over rent arrears of 600 million shillings, the Business Daily newspaper reported.
“The Nakumatt directors are optimistic that the court will make the administration order in relation to Nakumatt, as the order will enable Nakumatt achieve a better outcome for its creditors,” the company said in a statement.
If the order is granted, it will allow Nakumatt to be maintained as a going concern by a court-mandated administrator, the company added.
The source close to Nakumatt said the chain needed about a year under administration to pay off its debts and could then emerge as a viable, leaner chain with 10-20 stores.
At its height, the company, which began life as the Nakuru Mattresses store, had more than 60 outlets across Kenya, Uganda, Tanzania and Rwanda. Large bronze statues of its elephant mascot stood outside store entrances, the trunks rubbed shiny by shoppers’ children.
But over the past year its financial woes have led to empty shelves and store closures.
Rival Tuskys has proposed a merger to resolve Nakumatt’s problems and is willing to support it while under administration, Nakumatt said in a statement on Monday. [nL5N1LZ203}
The High Court will hear Nakumatt’s application for administration on Nov. 8.
Compounding Nakumatt’s problems has been an economic slowdown in Kenya this year due to tensions surrounding a presidential election in August and its re-run last week.
($1 = 103.6000 Kenyan shillings)
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Reporting by Duncan Miriri; Editing by Ed Cropley and Mark Potter
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Kenya’s Nakumatt, once East Africa’s top retailer, files for administration

Mercy Mpinganjira |University of Johannesburg
&nbsp;
<div class="grid-ten large-grid-nine grid-last content-body content entry-content instapaper_body">
Online shopping is becoming ubiquitous in many parts of the world. The internet today enables retailers to open online and serve customers at any time of the day without the need for them to visit a physical store.
This is especially true in countries like China, the US and the UK, which lead the pack when it comes to e-commerce. Globally, e-commerce is a trillion-dollar industry and online retailing is a major part of it.
Online retailing is a relatively new phenomenon and still a small element of total retailing in Africa. In South Africa, for instance, total online salesin 2016 were estimated at R9 billion which was only 1% of total retail sales.
The rapid penetration of internet technologies around the continent provides hope for e-commerce’s continued growth. Firms that want to enter the online retailing market must learn and develop strategies that will help them benefit from this growth.
I undertook a study that looked at various factors that influence customer attitudes towards online stores. It focused on existing online shoppers from South Africa’s Gauteng province, which is the country’s economic powerhouse. There were 201 respondents in the study. All were older than 18 and from the middle- to upper-income groups according to the South African Living Standard Measure. 98 were men and 103 were women.
The respondents completed a structured questionnaire. They gave answers on a scale from 1 (strongly disagree) with a statement to 5 (strongly agree). The customers were asked to have a specific online store in mind when answering the questions.
<h2>The findings</h2>
The findings showed that customers, in general, were positive about the online retail stores they were using. Four main factors influenced their attitudes and intentions to shop at a particular online store again. These were:
<ol>
<li>Store offerings: Denoted by the choice of products and the price at which the products are offered, this emerged as the main source of customer value associated with a store. Customers rate an online store’s offering as high when they are happy with the type and quality of products on offer as well as the price at which these are offered.</li>
<li>Navigation aids: This refers to website elements that help shoppers to easily find what they are looking for. Navigation aids can make online store visits easy and encourage shoppers to take desirable action like visiting more pages associated with an online store and purchasing products. Examples of online store navigation aids include a good site map, a FAQ (frequently asked questions) section and a built in search facility.</li>
<li>Security concerns: Online shopping entails sharing of personal information, including credit card details and many respondents were anxious about the security of such information. They worry about data breaches and the possibility of their personal information ending up in the hands of hackers or other unauthorised people.</li>
<li>Fulfilment reliability: this refers to dependability in the way in which online shopping orders are processed. It is about having the right products delivered to customers within stipulated time frames.</li>
</ol>
<h2>Implications for retailers</h2>
Online retailers need to realise that not everyone who has access to internet is a potential customer. Segmentation and target marketing is key to ensuring that customers are satisfied with an online store’s offering. When this is properly done, it will help an online store to stock products and implement pricing strategies that will have high appeal to the target market.
It’s also important to give serious attention to online store design issues. They need to provide good navigation aids to facilitate the provision of access and search convenience. Ease of navigation is critical to enhancing any online customer’s shopping experience.
Thirdly, online retailers need to appreciate that their customers are likely to have some security concerns. Online retailers have a duty to help ensure their customers’ security by keeping up to date with technological developments in this area and using the best security systems available.
The study’s findings about order fulfilment show how important it is to invest in a good order processing system. Customers need a clear indication of when they can expect their orders. If there are any delays customers must be informed in good time to quell their anxiety. Online retailers should invest in order tracking services so customers can easily follow the progress of their orders.
It is worth noting that focusing on these four factors – store offerings, navigation aids, security concerns and reliability in order fulfilment – can encourage customers to repurchase from the same store. Any online retailer must work not just to acquire new customers, but to retain existing ones.
<h2>Limitations and future studies</h2>
All these findings must be understood bearing in mind that the study had some limitations.
It was based on a sample of respondents drawn from Gauteng, which is South Africa’s most urbanised province. This means the findings may not be generalised to all parts of the country.
Secondly, it looked at online stores in general rather than those in a particular industry. This means that any industry differences in factors that influence attitude towards online stores could not be established.
Future studies may include samples drawn from different parts of the country or the continent as well as aim at establishing industry differences or similarities by focusing on retailing within a single or a few industries.
</div>
<div class="grid-ten grid-prepend-two large-grid-nine grid-last content-topics topic-list"></div>

Here’s why South Africa’s online shoppers keep coming back for more

Andre Rosslee | Absa
It was announced recently that South Africa is no longer in the technical recession that resulted from two consecutive quarters of negative growth. While welcomed news, it does not change the fact that consumers remain under pressure in the face of ever-increasing living costs, growing debt levels and significant political uncertainty.
All forecasts are that this constrained operating environment will continue. Unfortunately, no one-size-fits-all solution exists that will enable businesses to weather the storm unharmed. The good news however, is that there are ways that businesses in the wholesale and retail space can work to mitigate their losses and identify gaps that serve as growth opportunities.
Some key tips for wholesalers and retailers are:
Differentiate your business through top-notch customer service and make your customers feel valued
Customer service lies at the heart of the retail industry, so being able to meet consumer wants and needs is non-negotiable. And more than just meeting their demands customers want to feel special and valued. For example, clever retailers use the data they have available through social media channels to provide customers with a personalised experience. This gives the customer the sense that they are more than just another set of feet walking through the door (or just another online customer).
Manage your margins correctly
Any retailer or wholesaler who has worked in the industry for a length of time understands how vital it is to maintain the right stock levels. This includes ensuring there is an adequate supply of high-demand products and making sure there is not an excess of products that are harder to move. Finding the perfect balance requires monitoring and understanding customer buying patterns, replenishing stock at the right time and keeping abreast of product trends.
Look after your staff
Regardless of what industry you work in, staffing is one of the most important components of doing business. By recognising and rewarding your staff members’ hard work, you can ensure your staff is energised to help achieve your business objectives.  In an industry where staff often have to work longer hours – and especially in peak periods such as the festive season &#8211; it is important to show them that you appreciate their commitment and efforts.
Ensure you have an efficient omni-channel offering
An up-to-date and user-friendly eCommerce offering is a necessity for retailers hoping to stay competitive in an always-on world of digital convergence. A recent study by Ipsos found that the number of South African online shoppers is expected to triple in the next few years, indicating the need for a strong digital offering. However, it is key that customers’ needs are met at every touch point – from mobile and desktop to the bricks and mortar store. To do so, business owners and management need to understand how customers shop and build an omni-channel offering that caters to these patterns.
Consider what promotions are on offer
The age of the savvy consumer is upon us. Promotions are a necessary tool to drive feet into stores (and increase online sales). Retailers cannot simply place products on promotion without thinking of the impact it will have on their margins. Black Friday last year is an example of how promotions did not yield the intended result. Because the phenomenon is fairly new to the South African market, many retailers did not price their products correctly and therefore made a loss. As a retailer, you will need to make an informed decision on what margins you are willing to sacrifice on promotions.
Do not underestimate the importance of your brand
Retail’s busiest season has just started. Between September and December often businesses experience three times as many sales between as there are over the course of the rest of the year. This makes it a highly competitive period. You need to go the extra mile to attract customers – and building a brand or corporate identity through imagery, promotions and service are often successful ways retailers can achieve this.
As costs of operations rise, and the consumer becomes ever more aware of controlling budget spend, business profit margins become thinner. It is therefore necessary to partner with a financer that is aware of the nuances and climate our unique country finds itself in.
Overall, there is a generally muted industry outlook. Combined with challenges around heightened safety and security concerns such as robberies, card skimming and credit card fraud, among others, vigilance, creativity and resilience is needed to succeed in an extremely difficult operating environment.
&nbsp;

How wholesalers and retailers can weather the economic downturn

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Nigeria&#8217;s E-commerce sector is currently growing at an estimated 25 per cent annually. How profitable is the industry and what model of operation is suitable for formal retail in Nigeria? Oyedamola Akinsanya filed this report.

Nigeria’s e-commerce is growing: How profitable is it?

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How is Nigeria&#8217;s retail space faring as Nigeria&#8217;s economy begins to show signs of improvements? CNBC Africa spoke to Haresh Keswani, Managing Director, Artee Group and started by asking about the state of retail in Nigeria.

Is Nigeria’s retail industry growing or shrinking?

Department store Stuttafords, the 159-year-old &#8220;Harrods of South Africa&#8221;, is closing down, victim of a global shift to online retail and a domestic economic slump that has put brands such as Ted Baker (<a href="http://www.reuters.com/finance/stocks/overview?symbol=TED.L">TED.L</a>) and Gap (<a href="http://www.reuters.com/finance/stocks/overview?symbol=GPS.N">GPS.N</a>) beyond its customers&#8217; reach.
Mirroring the fortunes of once-mighty department stores in Europe and the United States, the doyenne of the South African high street during apartheid and the two decades since applied for protection from creditors in October.
However, attempts to revive its fortunes proved futile and creditors voted in June to wind up the unlisted firm by Aug. 1, with closing-down sales at its nine stores in South Africa, two in Botswana and one in Namibia.
In its flagship store in Johannesburg&#8217;s Sandton financial district, piles of naked mannequins lay in heaps next to bare shelves as the last few bargain hunters picked through trays of heavily discounted perfumes, make-up and clothes.
&#8220;We don&#8217;t know what&#8217;s going to happen &#8211; if we will still have jobs,&#8221; said one employee, who did not want to be named for fear of hurting her chances of staying on. &#8220;We only heard that maybe this shop will be one that will not close.&#8221;
For South Africa, it is the end of a piece of retail history.
The first shop was opened in Cape Town in 1858 by Samson Rickard Stuttaford with the vision of creating a Harrods-like department store in what was then Britain&#8217;s Cape Colony.
Its main Cape Town store, opened in 1938, was designed by in-house Harrods architect Louis David Blanc and echoed the British store&#8217;s famous frontage in London&#8217;s exclusive Knightsbridge district.
Through various changes of ownership, it never lost its focus on the middle and upper-class South African market, despite the economy&#8217;s failure to recover fully from a deep recession in 2009 sparked by the global financial crisis.
Chief Executive Robert Amoils could not be reached for comment but has defended his approach to the tough conditions.
&#8220;I believe the path we set was correct,&#8221; he told business website Fin24. &#8220;We ran out of time. The market downturn was so swift, so severe.&#8221;
John Evans, a lawyer overseeing its closure, said he had received a last-minute approach that could salvage two Johannesburg outlets, in Sandton and Eastgate, which would save the jobs of 300 of the group&#8217;s 950 staff.
&#8220;There&#8217;s a chance we&#8217;ll save Sandton and Eastgate. If we do, we should be able to save 300 jobs,&#8221; he said.
<img loading="lazy" decoding="async" class="alignnone wp-image-236748 size-full" src="http://cnbc.africa/wp-content/uploads/2017/07/Stuttafords_01.jpg" alt="" width="400" height="246" />
<h3 data-reactid="58">&#8220;Fall from Grace&#8221;</h3>
Nearly all retailers in Africa&#8217;s most sophisticated economy have struggled as consumer sentiment has hit multi-year lows, a result of high unemployment and inflation gnawing at disposable income. The economy is now back in recession.
The slump is piling pressure on President Jacob Zuma, who faces increasing calls to resign due to a slew of corruption scandals and accusations of mishandling the economy.
Macy&#8217;s (<a href="http://www.reuters.com/finance/stocks/overview?symbol=M.N">M.N</a>) and Nordstrom JWN.M in the United States have also hit tough times, suggesting Stuttafords&#8217; woes are not unique to South Africa, Sasha Naryshkine of local asset manager Vestact said.
The main squeeze has come from cheaper retailers such as South Africa&#8217;s Woolworths (<a href="http://www.reuters.com/finance/stocks/overview?symbol=WHLJ.J">WHLJ.J</a>), Sweden&#8217;s H&amp;M (<a href="http://www.reuters.com/finance/stocks/overview?symbol=HMb.ST">HMb.ST</a>) and Spain&#8217;s Zara (<a href="http://www.reuters.com/finance/stocks/overview?symbol=ITX.MC">ITX.MC</a>).
&#8220;The fall from grace in all these department stores is that people can get the same stuff online and there is a rise of other quality brands at a cheaper price,&#8221; Naryshkine said. &#8220;In an economic downturn, people are going to shop down.&#8221;
Nor is Stuttafords alone.
Footwear and accessories chain Nine West, owned by U.S. buyout firm Sycamore Partners, and Spanish fashion chain Mango, whose local licences are held by House of Busby, have closed stand-alone outlets due to poor sales.
&#8220;The brands did not meet the required return on invested capital hurdles,&#8221; House of Busby Chief Executive Mark Sardi said.
Edcon&#8217;s [EDCNP.UL] Edgars, another clothing retailer ubiquitous in South African shopping malls, was taken over by creditors last year and had to restructure debt.
In May, no-frills retailer Mr Price (<a href="http://www.reuters.com/finance/stocks/overview?symbol=MRPJ.J">MRPJ.J</a>) posted its first annual drop in profits in 16 years, while rivals Woolworths and Truworths (<a href="http://www.reuters.com/finance/stocks/overview?symbol=TRUJ.J">TRUJ.J</a>) flagged lower or stalling earnings last week.
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Writing by Olivia Kumwenda-Mtambo; Editing by Ed Cropley and Susan Thomas
</div>

Stuttafords – “South Africa’s Harrods” closes its doors after 159 years

This content is sponsored by Chivas 
Ask young Ghanaian social entrepreneur, John Armah, how he’s doing and he’ll reply, “I am blessed”.
This is a modest summing up of Armah’s incredible achievements.
Last year he was listed as one of Junior Chamber International Ghana’s Ten Outstanding Young Persons. He was also ranked 12th Most Influential Young Ghanaian by Avance Media, Ghana’s leading media and public relations agency. And currently the Board Chairman of Junior Achievement Ghana.
Armah is the CEO of the Orios Group, which aims to redefine wealth creation in Africa by identifying, training and supporting scalable, impact-based African start-ups.
Orios has trained over 20,000 youth and businesses in Ghana, formalized over 400 Businesses and has been a key advocate of championing policy in Ghana&#8217;s Start-up Ecosystem also actively matching Investors to Start-ups in Ghana while it raises the Orios Fund.
It focuses predominantly on early and growth stage businesses providing Patient capital, business development, Training and Advisory services to this market, a choice that Armah made critical of the various opportunities, talent, skill in the Ghanaian Economy championed by early stage firms.
Orios calls on social entrepreneurs to ‘elevate their hustle and redefine their dreams’ – then enables them to do so by providing specialised advisory and training services, as well as facilitating patient capital, via its three subsidiary companies – GCEEI, Trade Invest, and the Orios Capital.
Armah’s vision is to enhance the growth potential of start-ups in Ghana.
He uses an interesting approach to mentoring aspiring entrepreneurs, believing that young people who want to be social entrepreneurs should also have a passion for what they do. But beyond the Passion must build relevant Governance structures, Improve product development and move beyond PR to building relevant products that people actually want and will buy.
Instead of dispensing words of wisdom, he believes there are three key questions  aspiring Entrepreneurs should be asking themselves. “Who am I? What am I here for? Who am I doing this for?” Once they can answer these questions he believes they are on their way to building successful businesses or helping others build same.
“The underlying factor for success is having the skill and commitment beyond passion for the social good you want to achieve. That passion helps you determine if you want to be part of a business or not. To be a social entrepreneur you must be driven by motivation, passion, commitment, and have a sense of compassion,” he says.
With a strong Board and Shareholders made up of some astute recognized and celebrated business men in Ghana, a Board chaired by Mr. Kweku Awotwi, Former Head of Ghana&#8217;s Volta River Authority. John Armah and his team of 15 core staff are leading a charge to raise a fund to provide patient capital to some of Ghana&#8217;s most innovative early and growth stage start-ups.
This ethos led to Armah being featured on the CNBC series, Chivas, Win the Right Way.
The show profiles six social entrepreneurs from the continent. Its aim is twofold: to give even more visibility to this movement that uses business as a force for good; and to showcase a new generation of African entrepreneurs.
Series host, Audu Maikori, says Chivas, Win the Right Way celebrates those who not only build personal successes but who also positively impact their communities – a process he calls “profit with purpose”.
Armah echoes this sentiment: “We exist on this Earth to do good, and sometimes we profit from this good, which allows us to create vehicles to do more good.”
Catch episode two of Chivas, Win the Right Way on Wednesday November 2 to find about more about Armah and the work he is doing in Ghana.
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Why this Ghanaian is among Ghana’s Ten Outstanding Young Persons

TJ Strydom | JOHANNESBURG
South Africa-based retail group Steinhoff International reported a 13 percent rise in half-year operating profit and a 48 percent jump in revenue as recent acquisitions buoyed sales.
Steinhoff, which bought U.S.-based Mattress Firm and Britain&#8217;s Poundland last year, said its operating profit rose to 903 million euros ($1.02 billion) in the six months to end-March, up from 797 million a year earlier.
<blockquote>&#8220;Excluding the recent strategic acquisitions, the company&#8217;s retail business achieved total organic revenue of 7.2 billion euros amidst volatile markets and currencies, translating to 9 percent organic growth,&#8221; Steinhoff said in a statement.</blockquote>
The South African group, which moved its primary listing to Frankfurt in 2015, focuses on thrifty furniture shoppers in developed markets such as Europe and the United States but also sells clothing and mobile phone airtime in Africa.
Geographical and product diversification in a resilient discount market helped the company achieve solid revenue and operating margins, Chief Executive Markus Jooste said.
Steinhoff, after withdrawing from a plan to merge its African assets with grocer Shoprite, last month said it planned to separately list its African businesses on the Johannesburg Securities Exchange.
($1 = 0.8876 euros)
(Reporting by TJ Strydom; editing by Jason Neely)

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