Retail is yet to turn the corner
Good news from Black Friday
But December sales figures may show a slump if shoppers did a large portion of their spending during November frenzy
Black Friday did the trick for retailers in November, with shoppers scrambling for bargains and driving year-on-year sales 8.2% higher. It was the strongest rise in retail sales since June 2012 and trounced analysts’ consensus expectation of a 3.5% rise. An overjoyed market responded by lifting the JSE general retailers index by almost 8% to its best level since August 2016 in the week of the sales data’s release on January 17. The market will now be looking for assurance that the stronger sales growth trend is sustainable. Investec Bank economist Kamilla Kaplan has reservations. "There is a risk of the stronger than expected outcome in November giving way to weaker than usual December sales growth," she says in a research note. But while consumers were still buying clothes from TFG with enthusiasm in December, they were cutting back on their spending on other items. Sales declines across TFG Africa’s nonclothing brands ranged from 0.8% on jewellery to 10.8% on cellphones. Trading o...
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.