No relief in sight for local clothing retailers in 2018
Clothing retailers are likely to see single-digit growth in future as low sales, worsened by weak economic growth and international competitors entering the market, continue to put the sector under pressure. Weak and declining consumer spend, regulatory and political pressures, low credit growth and investment levels meant less buying power in the hands of consumers. The IMF forecast SA’s GDP growth at 0.8% for 2017. A recent report by advisory firm EY on the country’s retail sector for the first half of 2017 said the retail spend had recovered during the period. However, senior equity analyst at Sasfin Wealth Alec Abraham said apparel retailers would at best experience single-digit growth in the 2018 financial year as they continue to come under pressure from a weak economic climate. "I don’t think it will get significantly better for any of the retailers," he said. The clothing retail pie was getting smaller and being aggravated by international competitors who were gobbling up th...
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.