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Are retail conditions improving in your sector?

Jul 21st 2011, 11:23

Are retail conditions improving in your sector?
With reference to the retail sector conditions improve article on it’s encouraging to know that retailers are feeling more confident about business as a whole. But will this confident attitude withstand the recent activity in our economy?

Such activity is the introduction of Walmart into South Africa, which will affect all retailers, not only those selling food and beverages. This introduction will also affect retailers selling other apparel because Walmart look set on brining the George clothing brand to South Africa. George is the largest children’s clothing label in the UK.

In spite of Walmart’s looming shadow, our local clothing retailers appear to be thriving. For example, Truworths expects higher profit and Woolworths expect their profits to increase. This could mean that Walmart may be able to enter the market in harmony with existing shoe and clothing retailers.

The recent union strikes have no doubt had a negative impact on the economy with the potential to interfere with its growth potential. With inflation remaining above the Reserve Bank’s target range, we could see the Reserve Bank raising interest rates sooner than expected (Strike wave casts cloud over growth prospects).

These, coupled with the economic recession, could mean negative effects for retailers in general. But, as with all things, only time will tell.

What are your thoughts on retail conditions in South Africa? In your opinion, are they improving or declining? Comment on our Facebook page, .

Wendy Smith

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