Company Comment
Nothing to cheer about this past festive season
Downturn forces consumers to make difficult choices
South Africans love Christmas. Previously, they would have just shrugged off whatever bills came their way by maxing out their credit cards so they could enjoy the festive season. The past year was different. It said a lot about the state of the economy when Shoprite reported that school supplies had outsold toys for the first time in December. It showed that bare bank accounts forced many parents to make some hard decisions. Do they treat their children or do they prepare for the new school year? A lot has been written about how the rise in the VAT rate, an increase in interest rates, below inflation wage hikes as well a higher fuel price, have conspired against consumers. The downturn has been more chronic than that. The results coming from general goods retailer, Massmart reflected this, with sales in steady decline for the last few reporting periods. Massmart is in a sense a bellwether for the state of the economy because its models of selling a high volume of goods at low ma...
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.