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BUSINESS NEWS - The Garden Route is one of the regions that is benefitting the most from the semigration and remote-working trend in South Africa.
According to Lightstone, semigration numbers were up by 35% last year from 2020, and this fast pace and subsequent increased foot fall obviously increases the demand for housing, food, fuel, services and entertainment – all of which bode well for Garden Route franchises.
Some sectors are, however, facing headwinds. Due to the current challenging macro and inflationary environment as well as relentless load-shedding, fuel retailers are facing pressure on margins and reduced litres pumped.
In addition, due to the geographical location of the Garden Route and lack of Petro SA supply to the area, fuel retailers are dependent on deliveries from Gqeberha or Cape Town.
This makes stock management challenging and has an adverse effect on margins. Hopefully the infrastructure upgrades to the port of Mossel Bay will alleviate this problem.
Franchises in the retail and food sector are especially benefiting from the influx of semigrants, and we have seen numerous new franchises entering the market. Ironically, the semigration trend has resulted in substantial shortages in essential food items like milk.
These items need to be bought in bulk that, in turn, creates storage capacity issues and negatively impacts cash flow. We have also seen the average basket value reduce significantly due to the inflationary environment and pressure on household income, while load-shedding has increased costs and caused job losses in the retail sector.
Nedbank is deeply committed to supporting their clients through the ebbs and flows in this market and has local business representatives in George, Mossel Bay, Oudtshoorn and Knysna/Plettenberg Bay.
With Nedbank, clients get a partner that is strategically aligned to their growth narrative – one that understands that business owners need more than just innovative, competitively-priced products – and can help their business reach the next level.
Through our bigger-thinking approach, the members of our highly experienced, specialised franchise teams immerse themselves in each client’s franchise and sector so that they can become an extension of their team, with a full understanding of their financial needs and business aspirations.
We leverage our own extensive business experience to offer expert guidance, financial and business inputs, as well as innovative payment and e-commerce solutions to help franchise businesses reposition themselves for a digitally enabled operating model in the future. For example, Nedbank’s super app, Avo, enables business owners to connect and easily communicate with new customers, send quotes and receive secure payments, all with zero sign-up fees.
Avo gives business owners across all sectors access to thousands of new customers who are looking for verified service providers to deliver quality goods and services to their homes and businesses.
Ultimately, our ability to see and respond to the bigger picture and unlock growth opportunities through conventional and unconventional financing approaches, combined with our advanced digital capabilities, makes us a valuable partner to any franchise business that is serious about repositioning itself to survive and thrive – whatever the future brings.
Let’s work together to boost your business and the Garden Route economy.
Visit nedbank.co.za or talk to one of our franchising specialists to find out more about how we can help grow your franchise business:
- Fanie van Staden, Business Manager Nedbank Commercial Banking: George, Cell: 0824634737, email: stephanusv@nedbank.co.za
- Julian Paulse, Relationship Manager: Card Acquiring, Cell: 0828887448, email: julianp@nedbank.co.za
- Lientjie Dean, Business Manager Nedbank Commercial Banking: George: Cell: 0714113805, email: lientjied@nedbank.co.za
- Carin Venter, Business Manager Nedbank Commercial Banking: George: Cell: 0649480897, email: carinv@nedbank.co.za
- Latella de Kock, Relationship Manager Nedbank Commercial Banking: Corporate Saver & Investments, Cell: 0826117319, email: latellad@nedbank.co.za
- Herman Meyer, Relationship Manager Nedbank Commercial Banking: Mosselbay, Cell: 0836801355, email: hermanme@nedbank.co.za
- Riaan Marais, Area Client Manager Nedbank Commercial Banking; Garden Route, Cell: 0829001694, email: riaanm@nedbank.zo.za
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