Retailing Business News Features

The Finance Minister’s positive tax relief initiatives for the lower income earners will have some positive spinoffs for the retail sector, in particular food retailers, says Shanay Narsi, BoE Private Clients’ Retail Sector Equity Analyst.

The Cape Town-based Shoprite Group produced satisfactory turnover growth in the six months to 31 December 2009, increasing total sales by 11,9% to R 33,1bn and by 6,4% on a like-for-like basis. This growth must be seen against the background of internal food inflation that dropped to below 3% in December.

Consumer credit organisations are predicting a bleak Christmas this year, particularly for the retail industry. Price increases, job losses and low growth in the retail sector together with rising bad debts on credit portfolios are causing consumers to spend less.

THE retirement of Raymond Ackerman as the chairman of retail giant Pick n Pay was – albeit partially expected – not announced at the best of times for the supermarket giant.