Festive season set to show good retail sales
Economic forecasters are hopeful that festive season retail sales could grow by as much as 3% but retailers will have to work hard to get a cut of the predicted additional R5.8bn in sales expected in December. Already we are seeing retailers trying to outdo each other with special offers and incentives to make hard-pressed consumers spend more. But consumer spending continues to be negatively affected by higher electricity, the e-toll coming into force and the predicted petrol increase that will come into force during December.
According to Credit Guarantee Insurance Corporation who conducted a pre-festive season survey, the areas where we can expect growth include:
More consumers would also use credit over the festive season, including store credit or that provided by traditional financial institutions.
- Improved volumes across food wholesalers
- Restaurants and fast food chains can expect to do well in the run-up to the festive season.
- In the IT sector, tablets and smart phone demand shows no sign of slacking.
- Although retail trade sales figures on durable goods such as household furniture, appliances and equipment continued to contract, the demand for these items could pick up slightly over the festive season.