Shoprite launches first clothing store as competition in retail hots up

Competition in the clothing retail industry in SA is set to hot up with Shoprite launching its first clothing store at Canal Walk — the country’s first self-checkout chain.

The store, named UNIQ, one of eight being opened in the next month, will employ nine staff.

The cash-free store, a growing trend in SA, requires customers to serve themselves and use self-checkouts, a first in SA and third in the world, according to head of clothing at Shoprite Michael Coles.

The clothing has radio identification frequency tags, that Foschini also uses, which allow stock-takes to be conducted in less than an hour.

Computer chips on each item tag allow customers to use the self-checkout service.

Coles said consumers had expected Shoprite to launch a cheaper clothing store but instead they have focused on quality, including top fabrics at reasonable prices, putting them in competition with the likes of Truworths and Markham.

Euromonitor research analyst, Kauthar Jakoet said: “UNIQ’s entry into the apparel market may compete with established players such as Woolworths, [and] Foschini.

“But it remains to be seen how successful the brand will be in capturing market share from established players.”

Jakoet said: “Though Shoprite is a consumer-centric company that offers low prices, value and accessibility to consumers, UNIQ aims to reach a wider target audience by offering different apparel items in a higher price category. It is not limiting itself to value brands.”

Gryphon analyst Casparus Treurnicht said: “It’s hard for me to say but it feels like this is the most intense competition in retail ever.”

Euromonitor International says that fashion remains a lucrative industry in SA, estimated at R130bn a year.

Checkers has been adding more and different stores, launching a pet store, bank accounts, baby goods stores and camping stores.

Treurnicht wonders if Shoprite is spreading itself too thinly.

“My concern is that they are doing small start-ups left, right and centre. It is these things that might cause distractions for their bigger established businesses.

“They are doing it very slowly but then again is this really the best time to be trying out completely new product ranges that you are not completely familiar with? This is something I am struggling with ... I am not entirely sure how this is going to work out.”

Checkers is giving Woolworths and Pick n Pay serious competition in foods, and now it is moving into clothing.

Pick n Pay does not disclose its clothing store profits separately but has said its more than 300 clothing stores are growthdriven.

Coles explained the concept behind the store is selling clothes that are not high fashion but basics in styles that are still “on trend” — and will stay popular over a few years .

The stores are simple with limited products aimed at a shopper who is busy and wants a quick and convenient shopping experience.

Coles said: “A lot of people that I speak to say they go to clothing stores and find it very confusing. People prefer to keep [shopping] simple.”

He said that Shoprite CEO Pieter Engelbrecht did not want more of the same when launching the brand but wanted the clothing store to fill a niche and differ from existing clothing chains.