Advertise with fastmoving.co.za
 
 

Retailers make inroads into the African market
Retailers make inroads into the African market

Retailers make inroads into the African market

ECONOMIC NEWS

bdlive.co.za - Dec 1st 2016, 09:17

While African economies have suffered some setbacks as a result of a weakened global economy, the continent is still attractive in the long term. 

SA grocery, clothing and general retailers are making inroads into this potential, with the combined footprint of more than 1,400 stores on the continent.

In its interim results, Pick n Pay said its Rest of Africa division reported a 10.3% decline in profit before tax. But it said it remained confident of future prospects.

In the 26 weeks ended August 2016, the retailer opened seven new supermarkets outside SA with three in Namibia, three in Zambia and one in Zimbabwe. The group said it was on track with developing its operations in Ghana and Nigeria with both businesses in an early startup phase.

Pick n Pay said the first store in Ghana would open towards the end of the 2017 calendar year while Nigerian operations would probably commence in 2018.

Massmart, the high-volume, low margin and low-cost distributor of branded consumer goods, said it was seeking new store opportunities across selected African countries next year. Massmart already operates in 13 countries in sub-Saharan Africa, with 405 stores. The group is the second-largest distributor of consumer goods in Africa. In the second half if its financial year, the Walmart subsidiary plans to open a new store in Nigeria, with three further non-SA store openings planned for 2017.

In the 26 weeks ended June 2016, Massmart reported total sales growth of 23.2% in non-SA stores.

Clothing retailer The Foschini Group (TFG) opened nine outlets in its African operations in the half-year to end September 2016. This included its first store in Kenya, which opened in The Junction Mall in Nairobi.

Over the past five years, the average value of consumer spending has risen by as much as 67%, making Kenya Africa’s fastest-growing retail market. TFG now has 185 outlets across seven countries in the rest of Africa. These outlets reported turnover growth of 17.7% in the period under review.© Business Live MMXVI 

Read more about: south africa | retailers | economy

Related News

Inflation is contained and an interest rate rise is unlikely, say analysts
19/07/2018 - 10:13
The Reserve Bank could take a more hawkish stance, though, as a weakening currency puts upward pressure on inflation.

Consumer inflation accelerates as fuel prices bite
18/07/2018 - 10:15
The 4.6% increase in CPI was a little better than expected — possibly thanks to zero inflation in food prices.

Technology offers retailers respite in shrinking economy
06/07/2018 - 14:18
As business confidence in South Africa plummeted six points in June on the back of disappointing gross domestic product figures for the first quarter, South African retailers battle to achieve profitability, compounded by a PwC survey that names South Africa as the country with the highest rate of economic crime in the world.

Blockchain: A safe link in the food chain
06/07/2018 - 09:52
Experts say blockchain can help address food safety issues in SA, such as the one that led to the listeriosis outbreak.

Fuel price hike: Consumers brace for higher food, transport costs
04/07/2018 - 11:20
Consumers will be faced with higher travelling costs and the possibility of food price inflation as a result of the fuel price hikes which came into effect at midnight on Tuesday, economists have warned.