Retail spending up in December on stronger rand, says Mastercard
By Sunita Menon - Feb 12th, 09:56
Retail spending grew 3.8% in December on the back of the stronger rand and lower inflation, according to Mastercard.
Mastercard says this marked the strongest monthly performance for retail spending in SA since May 2013.
When including the effects of inflation, retail sales for December 2017 grew 7.5% year on year. Inflation contributed 3.7 percentage points to overall sales growth.
"This marks a significant deceleration in price inflation, bringing consumers much-needed relief over the holiday season," said Mastercard’s SpendingPulse, which reports on national retail sales. It is based on aggregate sales activity in the Mastercard payments’ network, coupled with survey-based estimates for certain other payment forms, such as by cash and cheque.
Senior vice-president of the group’s market insights Sarah Quinlan said: "The spike in consumer spending during the holiday season took retail sales to new highs. Sturdier GDP growth, a lower inflation outlook and the stronger rand, which drove down import prices — all benefited consumers over the holidays."
On Wednesday, Stats SA will release the retail sales figures for December. However, FNB economist Mamello Matikinca expects retail sales to moderate after a strong performance in November, propelled by Black Friday sales.
Retail sales saw its biggest jump since 2012 in November. The sector increased by a higher-than-expected 8.2% year on year in November 2017 (R94.67bn) after a 3.2% rise in October (R82.43bn).
Said Matikinca: "We expect to see a moderation in growth to approximately 3%, [because] consumers front-loaded purchases in December."
© BusinessLIVE MMXVIII
19% of fashion retailers displaying signs of financial distress
14/02/2018 - 10:19
Swathes of fashion retailers across the UK are showing signs of financial distress as they face “some of the most difficult trading conditions since the recession”.
Five consumer spending trends to look out for in 2018
08/02/2018 - 09:12
South African retailers and manufacturers face a significant shift in how consumers behave over the next few years, as economic conditions tighten, consumer confidence falls and Internet shopping takes off. Our research shows that many South Africans are fearful about the future, with 46% saying they are not very or at all confident about the future.
Slowdown in food inflation set to ease burden
05/02/2018 - 11:12
Average middle-income earners spend 28% of their salary on food, so the stable inflation environment will bring much-needed relief at the till, say, economists, who have noted slight improvements in the prices of staples such as bread and cereal.
SA food price inflation slows 4.9%
31/01/2018 - 10:40
"Food inflation for December 2017 was in line with our expectation at 4.9% Y/Y, from 5.2% in November 2017. This is reflective of the current lower agricultural commodity prices, which in turn, have been pressured by a large harvest from the 2016/17 production season. We expect this trend to persist in the short term cushioned by the relatively large stock from the previous season, despite the fears of dryness in the western parts of the country" - Wandile Sihlobo, Agbiz Head: Agribusiness Intelligence
Consumer inflation stabilises despite leap in fuel prices
24/01/2018 - 13:19
Consumer inflation edged up as expected in December, as a hefty fuel price increase of 70c a litre took a chunk out of consumers’ wallets but was counterbalanced by lower inflation elsewhere, including food.