Clicks CEO paints grim picture of economic turnaround
Despite retailer’s upbeat results, Vikesh Ramsunder believes the economy will remain in a precarious position in 2020 and beyond
Those hoping for a quick turnaround for the retail sector will be disappointed as the SA economy looks set to remain in the doldrums for at least the next couple of years, says Clicks CEO Vikesh Ramsunder. Ramsunder, who replaced David Kneale at the start of 2019, said recently he does not see the economy recovering anytime soon. In fact, he believes it will remain in a precarious position in 2020 and beyond. Ramsunder’s pessimism is somewhat surprising given that the health and beauty chain has been the standout performer in a struggling sector. Where Clicks has pushed up profits — it reported a 6.2% rise in turnover to R15.24bn and an 11.3% increase in operating profit to R1.04bn for the half year to end-February — others have struggled, delivering flat earnings. The results coming out of the sector were a direct consequence of the difficulty consumers were dealing with. Below inflation wage increase, hikes in fuel and interest rates have drained wallets over the past year. S...
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