FOOD PRICES HIGHER
Low spending hits Shoprite credit
The lending arm of Africa’s largest retailer sees a decline in credit sales for the first time since listing
Shoprite Investments, lending arm of Africa’s largest retailer, experienced a decline in credit sales for the first time since listing as consumers cut spending in response to the weak economy, its financial statements showed on Thursday. The company, which provides third-party credit to the retailer’s furniture customers, and which listed its debt in 2012, saw instalment sales retreat 6.5% to R1.05bn in the year to June. This compares with 34.5% growth, to R1.12bn, in 2015. Shoprite did not explain the decline in its financial statements, and was unavailable for comment at the time of publication. Ron Klipin, senior analyst at Cratos Wealth, said the decline could only come from the OK Furniture division. "[It’s the] only division of Shoprite that I believe sells durables, such as furniture and white goods," Klipin said. "With consumer spend under pressure, with escalating food prices in double-digit figures, finance payments are more and more in arrears."
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