Quick reads for this week
Cell C plans to implement a franchise model
Cell C has announced that it will be implementing a store franchise model in line with the strategy to leverage partnerships and collaboration to boost revenue and drive growth.
According to Cell C, the decision follows a review of its service model and a benchmarking exercise on the current 47 stores that are company-owned. Our franchise model has proven to be successful, with franchising stores performing 14% better.
“The plan is to franchise the 44 company-owned stores and retain three stores, namely Mall of Africa, Gateway, and Canal Walk.
Cell C will also implement enterprise and SMME development with staff to be given the opportunity to purchase stores as franchisees, with a rigorous and fair selection process focused on branch staff. The process is expected to take a minimum of three months, with more details to be communicated in due course,“ it said.
The group said jobs will be retained, staff contracts will be transferred to franchisees with the same employment terms and conditions, with Cell C’s involvement in ensuring a seamless transfer.
37% indebted consumers using credit cards more today than a year ago: Report
New Salesforce research shows that 37% of indebted consumers are using their credit cards more today than they were a year ago, while 32% report using alternative credit services like “buy now, pay later” more frequently.
“What’s more, 43% of consumers are carrying more debt compared to 2023. And this isn’t unique to one income bracket — consumers across all levels are tapping into their credit lines more today than they were last year,” the report found.
But this increased reliance on credit isn’t due to consumers buying more, it said.
According to the Salesforce Shopping Index, online order volumes have been falling since 2022 and decreased by 2% year over year in the first quarter of this year. When they do buy, they’re trading down, buying discounted merchandise, and seeking private labels.
FNB survey found that 50% of respondents are not planning on retirement
The 2024 FNB Retirement Insights Survey, which sampled a broad South African demographic informed by FNB’s diverse client base, indicates a consistent theme from 2023, which is that the vast majority of South Africans are inadequately prepared for retirement, primarily due to economic pressures and a lack of financial literacy.
According to FNB, data from the survey shows that close to 50% of respondents are not planning for retirement, with economic challenges, high immediate financial obligations, and a resulting inability to save being some of the biggest barriers. The findings highlight a critical gap between the imperative for financial survival and the importance of long-term financial planning.
Lytania Johnson, CEO of FNB Personal Segment, says: “This year’s study validates the ongoing financial and knowledge barriers that South Africans face, which impede effective retirement planning. However, the responses also show a greater awareness of the importance of education in overcoming those challenges. Despite a landscape fraught with economic instability and rising living costs, there is a growing awareness of the need for structured financial education and more accessible planning services.”
PERSONAL FINANCE