Vend extends growth in SA due to demand

Software enables retailers to manage inventory across stores, platforms

SOFTWARE firm Vend is extending its growth into South Africa because of the demand it is seeing from South African retailers, according to Higor Torchia, Vend’s country manager for Europe, Middle East and Africa.

Vend’s cloud-based point-of-sale and retail management software lets retailers run their business in-store, online and on the go, which includes inventory management, e-commerce, customer loyalty and reporting analytics.

Torchia, who is visiting South Africa, highlighted some of the latest trends emerging from Vend’s retail benchmarks report for 2018, which compared data from more than 13 000 retailers using Vend globally, which showed that the average independent retail store made $22 300 (R317 160) a month, with a gross margin of 51%.

He said, however, independent retailers in Africa were bucking that trend, with monthly sales volumes 25% higher than the global average. South Africa’s average monthly revenue was also 9% higher than the global average and 23% higher than in the UK.

Torchia said Vend’s key partnerships with South African smart technology payments company Yoco and local online accounting software firm Xero meant that it could provide a total retail solution for growing local retailers.

He said Vend processed about R160 million in sales from its retailers in South Africa each month and enabled retailers to easily manage their inventory across all stores and platforms, sell in-store, online and through mobile, reward customer loyalty and report on their business in real-time.

“South Africa has a real entrepreneurial spirit you can see come to life with the innovative and exciting retailers we’re working with in the region,” said Torchia. He said establishing stores in South Africa was the best way for international retailers to enter the African market, citing Danish company Lego as a good example.

“I think whatever big brand that wants to be global, South Africa is one of the best places to consider. It is a very big economy, it is growing. Cape Town is definitely one of our biggest markets in South Africa.

“I believe that the whole hype that goes on in the city, like the entrepreneurial spirit they have here, a lot of small start-ups that are starting, technology and all of that together is the basis of a specific environment where independent retailers can flourish,” said Torchia.

“Small and medium-sized independent retailers, from fashion, homeware and sports stores through to cosmetics, electronics and specialty foods, have had to operate on experience and instinct alone for far too long,” said Torchia.

He said worldwide, Vend’s data showed that furniture stores and beer, wine and spirits stores had the highest revenues, while beauty and cosmetics stores tended to earn the least on average.

Torchia said in Africa, the top three verticals with the highest gross monthly revenue compared to the average for African retailers were furniture stores (100%), sporting goods stores (72%) and purveyors of electronics and appliances (32%).