Niche eateries and shops flourish
Investing in small and medium-sized specialised outlets could be lucrative during these tough economic, says Retail Capital CEO
Small and medium-sized enterprises (SMEs) in the restaurant and retail sector should be funded despite the recession as these businesses will be engines for growth. This is the view of Retail Capital CEO Karl Westvig, whose optimism about restaurants and retail is backed up by the most recent Statistics SA data. While discretionary spending may be on the decline in SA due to the constrained economic environment, retailers in food, beverages and tobacco in specialised stores are showing positive growth rates. Boston Consulting Group partner and MD Stefan Salzer said shoppers wanted to feel they were being treated "a bit better" without necessarily paying too much more. "These stores give specialised attention which differentiates them from one-size-fits-all offerings," said Salzer. At constant prices, April’s retail data showed a 13.6% year-on-year rise in sales in this category of goods, higher than the overall retail trade rise of 1.5%. Retail Capital provides working capital to sm...
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.