Mar 02, 2012
Growth strategy key for SA retail expansionBack
Newcastle|Africa|BSI Steel|Ghana|Africa|Democratic Republic Of Congo|Ghana|Mozambique|South Africa|Zambia|Zimbabwe|Brits|Mining|Product|Retail Sector|Steel|Steel Distributor|Ross Teichmann|The BSi Steel Express
© Reuse this
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.
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© Reuse this Comment Guidelines (150 word limit)
Other Metals News
Article contains comments
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...