http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.89Change: -0.09
R/$ = 12.72Change: -0.21
Au 1084.91 $/ozChange: -10.58
Pt 981.00 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 01, 2012

Growth strategy key for SA retail expansion

Back
Africa|Ghana|Mining|Africa|Democratic Republic Of Congo|Ghana|Zambia|Product|Steel|Operations
Africa|Ghana|Mining|Africa|Democratic Republic Of Congo|Ghana|Zambia|Steel|Operations
africa-company|ghana-company|mining|africa|democratic-republic-of-congo|ghana|zambia|product|steel|operations
© Reuse this



The growing importance for companies to strategically position themselves within a reachable radius of end-users has resulted in JSE-listed steel distributor BSi Steel accelerating its plans to expand its Express outlets nationwide.

BSi Steel’s 45% increase in gross profits between April and September last year can partly be attributed to the company’s venture into the retail sector through the launch of BSi Steel Express, says BSi CE of SA Stockists Ross Teichmann.

“The BSi Steel Express con-cept is one of a number of growth initiatives that the company is embarking on. “While we are ambitious with our plans, we will not be reckless just for the sake of growth. “These branches will develop either through small acquisitions or start-ups from scratch, depending on the markets and opportunities that present themselves

“The roll-out of Express outlets will capture a greater cash sale component for the group, with the aim being to improve our overall gross margin,” says Teichmann.

Looking ahead, the steel distributor says it plans to open a series of BSi Express stores nationwide in the next three years. With two branches already in operation in Kya Sands and Wychwood, in Gauteng, the company is on track to open a third branch in Brits, in the North West, this month. Meanwhile, Teichmann says the branch network in Zambia, Zimbabwe, Mozambique and the Democratic Republic of Congo is achieving measurable success; however, it is too early to comment on the success of the Ghana branch.

BSi will continue to focus on increasing its footprint on the continent, owing to greater activity in the mining, oil and infrastructural development sectors. Teichmann points out that its South African distribution centre remains an important link to its African expansion plans.

BSi Steel says that, with predicted gross domestic product growth of 3% for South Africa in 2012, and considering that the company only contri-butes 200 000 t/y of steel to the country’s consumption figure of five-million tons a year, it is confident it can still gain significant market share in 2012.

Challenges
Recent challenges faced by the group include the strike action by workers in the manu- facturing sector in July 2011, which Teichmann says, had a significant negative impact on the group’s local and inter- national distribution operations.

Further, the temporary shutdown of steel manufacturer ArcelorMittal South Africa’s Newcastle blast furnace, between August and December last year, resulted in severe steel shortages. An unexpected increase in the demand for steel during the same period resulted in low steel stock levels, he states.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Metals News
Mercedes-Benz South Africa (MBSA) has begun the second phase of its aluminium localisation initiative, the company’s strategic business development, procurement and export manager Philip Jooste, told the National Localisation Indaba, in Durban, on Tuesday. This...
Global steel companies will have to balance efforts focused on globalisation while maintaining an eye on customisation if they are to survive and prosper in a market characterised by excess supply, market concentration and digitalisation, professional services firm...
Article contains comments
The sharp decline in commodity prices is, on balance, negative for the outlook for the South African rand, new bank research shows, with lower oil prices being more than offset by lower mineral and metals prices. Standard Bank head of South African research Walter de...
Article contains comments
More
 
 
Latest News
Updated 10 minutes ago Plans to set up the first four-week Operation Phakisa mining laboratory to identify and resolve the challenges plaguing South Africa’s mining sector has been given the Cabinet go-ahead. The Operation Phakisa mining lab, which would get under way in October, would...
Updated 16 minutes ago At least 71% of small and medium-sized enterprises (SMEs) consider load-shedding the biggest external threat to their businesses this year.
Updated 30 minutes ago Western Cape winery Audacia on Thursday launched its sulphite-free white wine made using Honeybush and Rooibos chips, and it is developing a low-sugar, low-alcohol wine. Western Cape Economic Opportunities Minister Alan Winde noted that the products were a boost for...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96