New mall developments and low vacancy rates should create opportunities in South Africa’s retail sector, though economic headwinds could restrict growth prospects in the short term.
South Africa Retail
Displaying 1 - 5 of 5
Sales growth in South Africa’s retail sector has cooled, a result of a slow economy and conservative consumer sentiment, but there is cause for cautious optimism as the approach of summer and Christmas is likely to give the sector a lift.
South Africa’s retail sector has seen mixed fortunes in recent months with a slowdown in vehicle sales but more encouraging news in luxury goods.
Although they benefit from a market with one of the continent’s highest levels of per capita purchasing power, retailers in South Africa have seen limited growth over the third quarter, due in part to rising levels of personal debt and an unspectacular performance in the broader economy.
Following the arrival of global giant Walmart, 2011 will no doubt prove to be a game changing year for the retail market in South Africa. While competition is set to intensify dramatically as a result, South African retailers are nonetheless benefitting from a robust domestic market, thanks in part to new revenue opportunities through private labelling, online commerce and loyalty schemes.