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Consumers under pressure

Jul 25th, 08:00


Consumers under pressure

 The financial state of South African consumers has been under the spotlight for some time now, retailers are the first to feel the effects of consumer restraint and pay close attention to the pressures facing consumers.

An avalanche of caution has emanated from retail executives in recent weeks and the signs of a slowdown in consumer spending are apparent in dampened sales numbers across all retailers.

Retailers have enjoyed favourable trading conditions for a protracted period, but there is little doubt that they are headed for a time where consumers will be under more pressure and less likely to spend freely.

There is also continued concern over unsecured lending and the impact that this has on consumer spending. If the much debated “bubble” was to burst and lenders were to starve shoppers of much needed credit, how far reaching would those consequences be for South African retailers?

· Shoprite misses sales target
· Massmart sales growth slows
· Rise in retail sales seen as a quirk

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