SEKGABO MOLELEKOA: Logistics sector and IT firms at the mercy of economic growth
Imperial has exited the domestic consumer packaged goods business while well-performing IT firm Mustek is dependent on consumer spending
Evidence of the economy being in a grave state can be seen in the logistics sector where volumes are under threat and pricing is precarious.
Imperial exited the domestic consumer packaged goods business due to an “unviable and uncompetitive business model”. Costs in the industry have been rising on the back of higher fuel costs, requiring appropriate pricing models for viability. Strategies such as percentage of invoice introduce a level of uncertainty in profits as costs incurred are generally similar regardless of goods being transported.