Most retailers spend the year on the rack
And tough times are set to carry on into 2017
Retailers contending for consumers' pockets have been battered and bruised, some more than others, in the battle for sales this year. In recent weeks, as many reported disappointing results, CEOs of retail companies have made it clear that they expect the environment to remain constrained throughout next year. Stomaching that reality is proving difficult for investors, who are shopping elsewhere for returns. The JSE general retailer s index has dropped 18.94% this year. Discretionary retailers, which rely heavily on credit sales, were the first to be hit. "Retailers of durable or discretionary goods have definitely been the losers," said Jason Muscat, a senior FNB industry analyst. "These are typically higher-value items that are often purchased on credit - and with rising interest rates, consumers have steered away from these goods." Consumers have very little room to manoeuvre. The measure of household debt to disposable income stood at 75.1%, and "while there has been deleveragin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.