Retail sales contract by 1.4%
IOL - Mar 6th, 11:15
Retail sales for December 2018 contracted by 1.4% year on year, from a downwardly revised 2.9% year on year in November (previously 3.1%).
This outcome negatively surprised relative our expectation of a mild uptick and the outcome marked the first contraction in retail sales since February 2017.
The weak performance was on the back of subdued sales by dealers in the textiles, clothing, footwear and leather goods (-2,7% and contributing -0,6 of a percentage point); and general dealers (-1,0% and contributing -0,4 of a percentage point) sectors. The December print takes annual sales volume growth for 2018 to 2.1% above 2017 levels.
The seasonally adjusted retail trade sales show the extent to which sales volumes underperformed in December 2018, registering a decline of 4,8% compared with November 2018.
This was partly due to a high base established in November, as consumers took advantage of Black Friday and Cyber Monday deals.
Siphamandla Mkhwanazi, FNB economist, said, "Despite the weak December print we expect a moderate positive contribution to the fourth quarter GDP. Looking ahead, we expect the combination of a sharp decline in the December and January petrol price and the gradually increasing credit take-up by consumers (particularly unsecured credit) to support retail sales in the coming months."IOL
South Africans are spending less on their weekly shopping trip
23/05/2019 - 09:44
Tiger Brands, which carries brands including Koo canned foods, All Gold, and Tastic rice, said that revenue from continuing operations fell 2% to R15.4 billion in the interim period.
Bidcorp expects higher food inflation in SA
23/05/2019 - 09:16
Global food-services group Bidcorp expects rising food price inflation in SA, where food producers and retailers are grappling with higher costs and low selling price increases.
Another recession in 2019 is probable, warns Old Mutual economist
22/05/2019 - 10:21
SA will probably enter another recession given the weak performance in the first quarter of 2019, Old Mutual Investment Group chief economist Johann Els warned.
Nike and Adidas join 173 US shoe retailers in call to avoid ‘catastrophic’ tariffs
21/05/2019 - 12:23
Nike, Adidas, and other footwear giants urged President Donald Trump to reconsider his tariffs on shoes made in China, saying the policy would be “catastrophic for our consumers, our companies and the American economy as a whole”.
Rhodes Food Group reports slight decline in net profit
21/05/2019 - 09:59
Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, says profit after tax was slightly down in the six months to end-March despite better sales.