Retail job cuts loom as spending is squeezed
Axe hangs over retail workers
Knock-on effect of slowdown also hits manufacturing - and it's going to get worse
As retail and consumer businesses continue to see margins freeze, industry pundits warn that job losses may be on the horizon for what were once the darling stocks of the JSE. Rod Salmon, a consumer and retail analyst at Barclays, speaking on the sidelines of the Australian Business Chamber retail panel discussion in Sandton on Friday, said the retail industry was expected to see job cuts. "If you look at how many jobs Edcon cut, they are going to have the same in Woolworths, Truworths and TFG ... everyone will cut jobs to become more efficient." Salmon said other apparel retailers would go through what Edcon had been going through in the last three years. "They are about to go through that now, because we are in a low-growth environment. Or they can expand geographically, which we've seen with TFG, Truworths and Spar all moving offshore," said Salmon. He added that for retailers the two biggest costs were rent and staff and to create greater efficiencies retailers would now have to...
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