Are SA retailers staring into the abyss?

According to a recent article in Business Day, South Africa’s once blue-chip retail giants are reeling in tandem with the economy as the glory days of retail fade.

  • The latest megamall is Fourways Mall. It cost R9-billion to revamp, has 450 stores and is the size of 20 rugby fields
  • Fourways Mall is now bigger than Midrand’s Mall of Africa
  • This is bad timing in a country with economic growth rate of 0,9%
  • South Africa’s unemployment rate stands at 29% – meaning few people have income to spare
  • Welfare payments to SA’s 18-million beneficiaries are set to grow by less than inflation
  • Online shopping trends also pose a threat to retail
  • The share prices of the largest SA retailers are down
  • Mr Price is down 24% over the past year
  • Grocery pin-up stock Shoprite is down 45%
  • Massmart, which owns Game and Makro, is 61% lower
  • Truworths is down 41%
  • TFG, which owns Foschini, is down 17%
  • Dis-Chem is down 34% over 12 months
  • Pick n Pay is down 21%
  • Both national and international retailers are faced with downsizing (such as Edgars) or closing (such as Toys ‘R’ Us)

 

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My Office News Ⓒ 2017 - Designed by A Collective


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