Retail news. Semester 1 of 2014 table of contents

Location still key in selection of business premises. By: David Reid. 12 Dec 2012

The physical location of a business is extremely important, because critical to the success of any company is the ability to effectively reach its desired target market. In turn, this involves supply and demand - whether this relates to products or services. Suppliers need to be able to supply with ease, and markets need to be accessible in order to meet demand. In selecting a suitable location for a business, rising transportation costs, including fuel and the proposed e-tolling, traffic congestion and the need for ease of access are just some of the relevant factors that are important.

Supply and demand are influenced by many factors, including awareness of the product or service on offer. However, location has a major impact on all these, even to the extent whereby having good exposure or visibility to passing traffic provides an ideal marketing opportunity that can save on advertising costs. Being in an acceptable location close to suppliers and customers or clients, having ease of access to highways and key transport routes, close proximity to public transport - particularly for staff, good overall security and having sufficient secure parking, all play a significant role in the choice of location.

Depending on the type of business and its target market, comfort factors such as general aesthetics and quality of the building may be relevant. Furthermore, it may be advantageous to be situated close to destinations that have synergies or something in common with the business, eg businesses offering financial services tend to be within easy reach of each other, in well-known nodes. Some businesses may prefer to be close to their competitors because of these nodal factors, such as retailers in high-traffic zones. Consideration should also be given to whether competitors situated close by can be bypassed by customers, so ease of communication with target markets is an important factor.

Restaurants and distribution centres are good examples of businesses that need to be in the right location.

Poor locations affect all business aspects

The immediate and long-term consequences of being situated in the wrong location should be considered. It can result in customers reviewing their source of supply ie going elsewhere, staff may experience transport problems or there may be a lack of suitability on the part of the new location, resulting in low morale and a danger that not all the factors that affect the feasibility of the business are taken care of.

In the end, if the business location proves over time to be a bad one, sound advice is to rather get out sooner than later - if one is an owner-occupier, put the property on the market even if it means a loss and do what is right for the business and its long term sustainability. If one is renting, consider the length of the lease and what the options for relocation are. Some businesses prefer to rent rather than purchase, as it affords them far greater flexibility should their business expand or if their requirements may change in the future. A courier company, for example, may well prefer to rent space - a factor that gives them the flexibility in order to relocate if needed.

If a business is situated in an area that has become run down owing to a lack of service delivery, one needs to try to mitigate the problem. If service delivery is poor, get together with other businesses in the area and be pro-active in trying to find a solution. In rejuvenating a location, one may find a number of landlords in an area or precinct are willing to join forces and perhaps set aside some of their proceeds from rentals for rejuvenation. Good examples of this are The Main Street precinct in Johannesburg and Braamfontein and the successful creation of pedestrian access and rejuvenation of Cape Town's central city.

Human DNA in meat samples. 27 Mar 2013

Scientists have found traces of human tissue in meat meant for public consumption, but this poses "no threat" to the consumers who eat it. They also been found that only 15% of meat being sold in SA has been correctly labelled, which means 85% of the meat in the market is questionable. The findings were presented in parliament on Tuesday (26 March) at a briefing on meat inspections.

University of Stellenbosch scientist Louw Hoffman said his team had conducted a microbial food analysis, a "snapshot" which sometimes picked up human DNA on meat samples. He said, however, this was not indicative of risk. He said that workers in an abattoir or butchery may cut themselves while working with meat and this could account for the traces of human DNA.

"If I walked into a factory and the sample I randomly selected to test was a meat sample of which the person de-boning the meat had just picked his nose and then touched the meat, I would get a totally different microbial reading," he said.

Hoffman said the products examined were mostly sausages and mince, and that 95 out of 139 products which were sampled were incorrectly labelled.

But Hoffman said though the meat was incorrectly labelled, there were no health risks to consumers.

Labelled as game but really beef

Briefing parliament's portfolio committee on agriculture, forestry and fisheries, University of Western Cape forensic scientist Dr Eugenia D'Amato said nearly 43% of samples she had tested which were labelled as game, were, in fact, beef.

D'Amato said horse meat had also been used as a substitute for springbok in biltong, and pork was found in ostrich sausages.

There was also a smaller proportion of kangaroo in samples.

The health department's Mandisa Hlela said though the department's own sampling had found that only 15% of meat products had been correctly labelled. She added that DNA testing was "quite expensive" and was mainly a municipal function. The department paid about R30,000 for 20 samples tested.

"However, we've gone to the municipalities and the deadline for their responses was the 24th [of March]. We've not received responses from all of them," said Hlela.

She said, however, that not all municipalities in the nine provinces were able to conduct food tests.

MPs have now called for increased policing of local and imported meat products to prevent mislabelling.

The ANC's Eugene Ngcobo said labelling had to be "fair and straight" so that consumers knew what they were buying - whether it was beef, pork, lamb, horse or donkey.

"We should know, and have a choice," said Ngcobo.

Hoffman said what was also worrying was that allergens were not listed and that up to 20% of consumers risked allergic reactions to the plant allergens which were found in some of the meat products.

"In the labelling regulations it clearly states that allergens have to be mentioned and noted," said Hoffman.