Prospects for the retail sector remain weak and are unlikely to improve in 2017, as confirmed by Massmart’s interim sales update released on Monday. In the 26 weeks to June 25, Massmart recorded R42.5bn in sales, representing an increase of 0.5% compared with the year-earlier period. Comparable store sales fell 1.6%. Product inflation was estimated at 3.2%. Massmart’s share price initially dipped more than 2% after the announcement, but bounced back into marginally positive territory. "I don’t know if there was anyone who was massively disappointed by the update," said Old Mutual Investment Group consumer and industrial sector analyst Brian Pyle. "Nobody really expected anything else other than what Massmart reported today. People are expecting tough times and the update shows it. That said, these numbers are weak."
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