&nbsp;Amazon is joining Walmart in pointing the finger at Tesla solar panels for fires on the roofs of their facilities in what is yet another hiccup for Tesla’s embattled solar business.



<ul><li>Amazon said Tesla solar panels caught fire in June 2018 at one of its warehouses in Redlands, California.</li><li>Amazon’s disclosure comes days after Walmart sued Tesla for breach of contract and gross negligence after seven stores experienced roof fires allegedly caused by faulty Tesla solar panels. Both companies later said they are working together to “addressing all issues.”</li><li>Amazon said it would not install any more Tesla panels.</li></ul>



READ MORE | <a rel="noreferrer noopener" aria-label="Walmart Sues Tesla Over Solar Panels That Allegedly Caught Fire (opens in a new tab)" href="https://www.forbesafrica.com/current-affairs/2019/08/21/walmart-sues-tesla-over-solar-panels-that-allegedly-caught-fire/" target="_blank">Walmart Sues Tesla Over Solar Panels That Allegedly Caught Fire</a>



In a statement to&nbsp;Forbes,&nbsp;a Tesla spokesperson said in an email that the Amazon fire was an “isolated event” at one of 11 Amazon sites with solar panels.



“Tesla worked collaboratively with Amazon to root cause the event and remediate. We also performed inspections at the other sites, which confirmed the integrity of the systems. As with all of our commercial solar installations, we continue to proactively monitor the systems to ensure they operate safely and reliably,” the statement continues.



Amazon did not immediately respond to a request for comment. Tesla did not respond when Forbes asked whether the company has plans for broader inspections of both commercial and residential solar power installations.



READ MORE | <a rel="noreferrer noopener" aria-label="Tesla Sued By Family Of Silicon Valley Driver Killed In Model X Autopilot Crash (opens in a new tab)" href="https://www.forbesafrica.com/technology/2019/05/02/tesla-sued-by-family-of-silicon-valley-driver-killed-in-model-x-autopilot-crash/" target="_blank">Tesla Sued By Family Of Silicon Valley Driver Killed In Model X Autopilot Crash</a>



According to a Business Insider report, Tesla was aware of problems related to its solar panels. In the summer of 2018, around the same time as the Amazon fire, Tesla launched a secret internal project called Project Titan to replace what the company said were faulty “connectors” manufactured by Connecticut-based Amphenol, according to the report.



Key Background: Tesla’s embattled solar business has been plagued by plunging sales, production delays and layoffs since CEO Elon Musk acquired solar company SolarCity for $2.6 billion in 2016.



Musk hasn’t tweeted about the Walmart or Amazon complaints, but instead announced a revamped pricing plan in an effort to boost the slowing solar panel business. The new pricing model allows residents in six states to rent solar power systems starting at $50 a month ($65 a month in California) instead of buying them up front.



-Rachel Sandler; Forbes

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Amazon Is The Second Company To Report Tesla Solar Panel Fire

Topline: Walmart is alleging in a lawsuit that Tesla solar panels caused fires on the roofs of seven Walmart stores, and is accusing Tesla of breach of contract, gross negligence and failure to comply with industry standards.&nbsp;



<ul><li>Walmart claims that Tesla installed faulty solar panels that eventually spontaneously combusted and caught fire at seven Walmart stores around the country.</li><li>The lawsuit alleges that Tesla inspectors didn’t notice defects that were visible to the naked eye, used cable connectors that weren’t compatible with one another and failed to see that loose and hanging wires were present at multiple sites.</li></ul>



READ MORE | <a rel="noreferrer noopener" aria-label="Jeff Bezos And Elon Musk Want To Get To The Moon—They Just Disagree On How To Get There (opens in a new tab)" href="https://www.forbesafrica.com/technology/2019/05/09/jeff-bezos-and-elon-musk-want-to-get-to-the-moon-they-just-disagree-on-how-to-get-there/" target="_blank">Jeff Bezos And Elon Musk Want To Get To The Moon—They Just Disagree On How To Get There</a>



<ul><li>Walmart says in the lawsuit it believes the failures were the result of rushed installation because Tesla’s solar division “adopted an ill-considered business model that required it to install solar panel systems haphazardly and as quickly as possible in order to turn a profit, and the contractors and subcontractors who performed the original installation work had not been properly hired, trained, and supervised.”</li></ul>



Tesla did not immediately respond to a request for comment from&nbsp;Forbes.







Key Background: Tesla got into the solar business after it acquired SolarCity in 2016 for $2.6 billion. But production of its residential solar panels under Tesla has been mired with delays and plunging sales.&nbsp;



Just this week, CEO Elon Musk announced a revamped pricing plan in an effort to boost the slowing business. The new pricing model allows residents in six states to rent solar power systems starting at $50 a month ($65 a month in California) instead of buying them up front.



Further Reading: Read the full lawsuit&nbsp;<a rel="noreferrer noopener" href="https://www.plainsite.org/dockets/40v40ia2y/supreme-court-of-the-state-of-new-york-new-york-county/walmart-inc-fka-walmart-stores-inc-v-tesla-energy-operations-inc-fka-soalrcity-cor/" target="_blank">here</a>.



-Rachel Sandler, Forbes



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Walmart Sues Tesla Over Solar Panels That Allegedly Caught Fire

Kuseni Dlamini, the Non-Executive Director of Massmart + Walmart, on retail tech and trends in Africa.

What is the future of retail in Africa? 
The African retail market is very robust and dynamic with a massive opportunity for growth. We have seen the rise of urbanization and industrialization in African economies, with the diversification of these economies, moving away from your traditional industries such as mining and agriculture, to other services such as ICT, so that the retail sector may thrive.
Consumer spending is projected to reach $860 billion by 2020 and increase to approximately a trillion by 2025. So you could say it is doing well… as people’s disposable income increases. That sets the basis for the retail industry to grow. The penetration of formal retail in Africa is still very low, in some markets such as Nigeria, the [informal] retail industry still accounts for 80% [of the economy], so there lies a huge opportunity for retailers such as Massmart to come in and establish their shops, playing a role in the formalization and modernization of the retail industry. Even though the informal sector of the retail industry is still an opportunity, we are still the largest wholesaler in Africa that has informal traders, kiosks and spaza shops that are still our customers. They come to us for their stock to sell to their customers. It is a win-win partnership we have with them across Africa.
Are robots now being incorporated in the retail industry? 
The digitalization of the retail industry is a way to better serve our customers. Consumers are increasingly time-poor, they are constantly looking for convenience, they want retailers to innovate and offer them the best service in the most convenient way to their lifestyles, so that requires us to constantly be innovative as we are moving into the online space.
Our online sales across our four divisions – Game, Builders Warehouse, DionWired and Makro – increased by 47%. That is the direction retail is headed globally. It is moving towards the omni-channel space, where it won’t just be bricks and mortar alone. We also don’t believe that it will move to the other extreme, where it would just be online [service].
How does African retail compare to the world? 
The retail industry in South Africa has always actively tried to be plugged-in to global retail best practices. Even before Massmart became part of Walmart, we have always benched-marked our business practices and offerings against the best retailer in the world. So there is a high level of sophistication in the South African retail industry. Our retail market is not in isolation, they are aware of what is happening in other countries such as Europe and Asia in terms of new thinking and new practices, we are at the cutting-edge. Though we are not far behind, there are opportunities to scale up and drive innovation, be proactive to customers’ changing needs and expectations. Customers are demanding high quality and retailers need to be responsive to that.
What is the future of Massmart in Africa? 
In the next three years, Massmart is looking at increasing its trading space by 35.6% and we believe that will position us to take advantage of the opportunities available from medium to long term. We also believe that partnering with local suppliers is vital to our success. We have a supplier development fund with which we are supporting 33 businesses and those businesses have helped us distribute imports as they have also enabled our suppliers to also export their goods to parts of the country. We also invest in black-owned as well as women businesses that can become part of our supply chain at a local and regional level to a global level.
How do you develop upcoming retailers? 
It is important for us because they are our retailers, if they succeed in their businesses, it means that they will continue to buy from us and sell to their customers. We need to build an inclusive economy in South Africa. We need small and medium enterprises to have a space in the economy. It can’t just be the dominance of the big retailers.

Kuseni-Dlamini-595

‘Moving Towards Omni-Channel’

The descendants of Walmart founder Sam Walton saw their fortunes shrivel by $15 billion on Tuesday, after the world&#8217;s largest retailer reported slowing online sales growth and a drop in profits over the holidays.
Shares of Walmart plunged by 9% after the retailer said its online sales grew 23% in its latest quarter, which was about half the rate of the previous quarter. While online sales still make up a fraction of the retailer&#8217;s overall revenue, Walmart has been investing heavily in its e-commerce capabilities. The numbers were likely enough to spook investors about the retailer&#8217;s traction in the fight against Amazon.
Walmart also logged a smaller quarterly profit from a year ago, with net income declining 42% to $2.18 billion and missing analyst expectations.
Jim, Rob and Alice Walton, children of founder Sam Walton, watched their fortunes fall by $4.1 billion apiece on Tuesday. Their sister-in-law Christy Walton, wife of deceased brother John, saw $628 million knocked off her net worth. Her son Lukas, 31, who received a larger share of his father&#8217;s estate, lost $1.2 billion on paper.
<a href="http://www.forbesafrica.com/billionaires/2018/02/01/african-billionaire-fortunes-rise/" target="_blank" rel="noopener">READ MORE: African Billionaire Fortunes Rise</a>
The Waltons are still among the wealthiest people on the planet thanks to the outsized success of the big box retailer. Jim is the world&#8217;s 15th richest person with a net worth of about $44.3 billion, immediately followed by brother Rob (No. 16 with $44.1 billion) and sister Alice (No. 17 with $44 billion)
Their sizeable stake in Walmart&#8217;s stock, which has climbed 36% in the last twelve months, makes up the lion&#8217;s share of their fortune. Altogether, Jim and the other heirs own just under half of Walmart&#8217;s stock. Only two family members &#8211; Rob and <a href="https://www.forbes.com/sites/katevinton/2016/04/20/billionaire-jim-walton-to-step-down-from-wal-mart-board-in-shakeup/#52075a32fd00" target="_blank" rel="noopener">Jim&#8217;s son, Steuart</a> &#8211; are currently involved with the company through their seats on the board.
Ann Walton Kroenke and sister Nancy Walton Laurie, who inherited a stake in Walmart from their father Bud Walton (brother to Sam), also lost a few hundred million dollars each on Tuesday.
<a href="http://www.forbesafrica.com/billionaires/2017/11/30/amazon-shares-fall-jeff-bezos-no-longer-centi-billionaire/" target="_blank" rel="noopener">READ MORE: As Amazon Shares Fall, Jeff Bezos Is No Longer A Centi-Billionaire</a>
Walmart has been investing heavily in its online capabilities and workforce in recent years, with investors eager to see signs that its efforts are paying off. It has snapped up e-commerce companies like Jet, Moosejaw and ModCloth and been trying to leverage its massive physical footprint, such as offering discounts on items that shoppers can order online and pick up in the store and turning stores into e-commerce fulfillment centers.
The retail juggernaut has also been shelling out big money to attract and keep quality workers. In January, it said it would be <a href="https://www.forbes.com/sites/laurengensler/2018/01/11/walmart-raises-minimum-wage-after-tax-reform/#223e4edb73c9" target="_blank" rel="noopener">raising the minimum wage </a><a href="https://www.forbes.com/sites/laurengensler/2018/01/11/walmart-raises-minimum-wage-after-tax-reform/#223e4edb73c9" target="_self">to $11</a> for more than one million of its U.S. hourly workers as a result of sweeping new tax legislation. It has also doubled down on its training programs to help entry-level workers climb the ranks into management. &#8211; Written by <a href="https://www.forbes.com/sites/laurengensler/" target="_blank" rel="noopener" data-ga-track="contrib block byline">Lauren Gensler</a>, FORBES STAFF

Walmart Heirs Lose $15 Billion As Stock Rocked By Sputtering Online Sales Growth

The Walmart/Massmart transaction unleashed fierce public debate. Fears about the ‘Walmart effect’ were everywhere: falling prices killing local suppliers, job losses and a squeeze on the unions.
Grant Pattison, the former CEO of Massmart, did not see it coming.
“In none of the scenarios did we identify that, one, government would take a negative view; two, that they would take that negative view through the competition authorities.”
When it came to employment issues, Pattison did not foresee obstacles because retrenchments were not on the cards and he had assured government and organized labor that the company would continue to meet its obligations under South Africa’s labor laws. He does not think he could have done anything differently.
The Competition Commissioner, Tembinkosi Bonakele, who was deputy at the time of the transaction, has a different view. In a dissertation submitted to the University of Pretoria, he argues that the companies’ stakeholder management was poor in the run-up to the transaction. He places much of the blame on Walmart, for not having a clear communications strategy and relying too heavily on Massmart. At the competition hearings, Walmart was adamant that it left key decisions to Massmart, and would not be drawn into questions about its reputation in the United States.
Massmart encountered more hurdles. After the Competition Tribunal had cleared the merger, with conditions, the South African Commercial, Catering and Allied Workers Union (Saccawu) took the matter to the Competition Appeal Court. In South African law, the authorities are required to examine the effect that a merger has on employment, often placing a cap on merger-related retrenchments. The appeal court imposed stricter conditions on the transaction; including the reinstatement of workers that Massmart had retrenched before Walmart’s announcement of the deal.
The implementation of this condition is contested. At the time of writing, Massmart and the union differed on whether the order to reinstate workers had been fulfilled.
On the other side of the coin, in the last three years, Massmart pushed ahead with expanding its grocery shops at the lower end of the market and increased fresh produce. It also bought shops such as The Fruitspot, a fresh produce processor, and Rhino Cash &amp; Carry, a small grocery store chain.
At the Tribunal, Massmart estimated that store expansion between 2011 and 2013 would create 6,403 jobs. The company claims 7,795 additional jobs were created in that time.
What of those hopes and fears, debated so passionately before competition adjudicators?
Firstly, price. Massmart’s annual reports indicate that estimated product inflation within the group is below consumer inflation, but this was so even before the transaction. There have been no dramatic price reductions, though Massmart’s entry into grocery retail with Cambridge Food has shaken up the lower end of the market. Levels of unionization remain the same as before. The number of employees with medical benefits are reported to have increased from 41% in 2010 to 54% in 2013. The average monthly minimum wage has increased from  $201 in 2009 to  $253 in 2013, in line with consumer inflation, though poorer employees are likely to have struggled to make ends meet. The flexible workforce has increased from 33% to 38%.
Secondly, trepidation. The big fear was that South African suppliers would be forced out by Walmart’s clout. Pattison says that this pressure had already been dealt with in the early 2000s. South African retailers know their way around China, Malaysia and Vietnam and are better at this than Americans; who have had the luxury of being courted by manufacturers from those countries.
Guided by two reports from economists, the Competition Appeal Court ordered Walmart-controlled Massmart to form a fund to help suppliers. One report, produced by Nobel laureate Joseph Stiglitz and James Hodge, had argued that any amount short of $47 million will almost surely fail. The court ordered the creation of a $22 million fund to limit the risks of the transaction.
The fund offers loans, grants, technical support and training. More than $1.5 million has been spent on farmers. Since 2012, smallholders have sold around $700,000 of food. It is reported that 645 seasonal jobs have been created by farmers. Less than $94,000 of the $9.1 million has been granted to manufacturers.
While a lot of the angst over the Walmart/Massmart deal has been lifted, there is still a long way to go before everyone is happy.

Tag: Walmart

FORBES AFRICA SOCIAL MEDIA

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‘Moving Towards Omni-Channel’

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What Were We Worried About?