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21.07.2011 |
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Are retail conditions improving in your sector?
With reference to the retail
sector conditions improve article on fastmoving.co.za
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, here.
Wendy Smith
wendy@fastmoving.co.za
Please feel free to make comments or raise new issues by
emailing the editor
editor@fastmoving.co.za
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