Conditions for retailers are becoming rough. Hefty hikes in food prices have contributed to the poor results and updates recently announced by nonfood retailers Truworths, Mr Price and TFG. It seems food retailers are no longer able to absorb the drought-related pressure and are putting up prices 7%-9%. More money spent on food means less for other goods. But it might just be that, comparatively speaking, things are not as bad as they seem. Nonfood credit retailers say their weak results have been aggravated by the tougher new affordability guidelines introduced by the National Credit Regulator (NCR) in 2015. The guidelines are intended to prevent reckless lending and oblige potential customers to produce their latest three months of pay slips or bank statements. TFG, Truworths and Mr Price are so unhappy with the legislation, they have launched legal action against the NCR and the Department of Trade and Industry. They say their own vetting is effective and the required documentati...
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.