NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/10/04 - South African retail industry is all set to enter the boom phase. Incrementing consumer spending, along with other factors, is fuelling growth in the country’s retail sector and will continue to encourage growth.
The leading name in the field of market research consulting services, RNCOS, has recently published its new report on the thriving South African retail industry - “South African Retail Industry Forecast (2007-2011)". As per the report, the SA retail industry is expected to post a healthy CAGR of 6% for the period 2007-2011.
Segment-wise, the report says, PC sales will move ahead at an expected CAGR of around 5.5% in the non-food section during the forecasted period while cloth retailing will become the largest market crossing US$ 9.3 Billion by 2011. As far as the spending pattern is concerned, people will expend more on non-food items than food items.
In store formats, supermarkets will take the lead and clock in an increase of over 54% in sales by 2011, says the report, although, the geographically crowded and intensely competitive market will contain the expansion plans of supermarkets and hypermarkets.
According to the RNCOS report, SA retail industry is said to be gaining momentum from increased consumer spending. The rising consumer demand, in the last couple of years, has fuelled the growth in the biggest economy of Africa.
The report says factors like stable fiscal and monetary policy, low interest rates, materialization of a strong black middle socio-economic class, and a relatively stable world economy are resulting in swelling consumer spending in SA, and are bringing a change in the spending pattern.
The SA retail industry is expected to go strongly in future too. The country is fast approaching urbanization and hence, the need for “affordable convenience” is also growing. With urbanization, percentage of single person households is also rising. As the single persons largely belongs to the working class with well-paying jobs, they hold good disposable incomes and want convenience products, thus pushing the sales of healthy, easy-to-prepare, and ready-to-eat products.
But, according to the report, the prime interest rate on cards is expected to hike (in 2007 and 2008) that may hit the high riding retail sales in SA as due to increase in interest rate, the card holder will have to pay high interest on credited amount. This will have an indirect impact on the purchasing behavior, so it may lead to slump in retail sales of the country.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.