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South African retail for the next six months

Aug 12th 2011, 10:39

12.08.2011

South African retail for the next six months


Falling short of gazing into a crystal ball, one can only speculate what effects the recent global trends will have on consumer spending and retailers. On the whole conditions don’t look favourable, especially looking at durable and semi-durable items. Food retailers, on the other hand, remain more resilient through tough economic periods.

But, there are a few more problems on the horizon, such as a weakening job market. Job losses coupled with increased household debt are an issue for retailers because, without jobs, consumers lack disposal income to spend.

The weak job market is seen in the manufacturing industry where reports say that manufacturing output slows down in major economies. Smaller industries have also being hard hit, such as, the South African wine bottling industry, which has experienced several job losses of late as a result of bottling plants closing their doors (SA wine bottling industry in economic decline).

Retailers will have to brace themselves for a difficult period ahead.

Wendy Smith


Please feel free to make comments or raise new issues by emailing the editor

        
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