Euromonitor encourages SA retailers to broaden their horizons
Retailers in SA need to expand their scope from the middle class to include poorer consumers, who make up half the population, according to market research provider Euromonitor International. In sub-Saharan Africa, 20% of the population have an annual income of less than $2,500. This is expected to rise to 30% by 2030. SA has the largest income divide in the world, with more than half of the population earning less than $2,500 a year. According to the Euromonitor report, the focus for retailers has been on the rising middle class, but the lower segments of the population hold "untapped potential", with poverty in SA expected to remain unchanged by 2030. "Thus, companies should adopt a stable, long-term strategy for these countries." It was a difficult market to benefit from, said FNB senior economic analyst Jason Muscat, adding that consumers were very price sensitive and looking for value for money. "SA’s prospects at creating more jobs are dire, even with 2.5% growth, and people a...
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