Growing Buying Power of Consumers - Key Driver For Growth in Retail Sales in SA

Released on = June 10, 2007, 10:25 pm

Press Release Author = Shushmul Maheshwari

Industry = Retail

Press Release Summary = Owing to the increase in spending power of South African
consumers, the retail market registered an impressive annual growth rate of 101% in
the 1Q of this year (2007).

Press Release Body = As per a recent report on “South African Retail Industry
Forecast (2007-2011)\" published by RNCOS, it has been found that South Africa would
witness a moderate growth in the real disposable income - the key driver for
consumer spending - during the period spanning 2007-2011. Consequently, retail sales
would also increase in the country.

Retail sales in South Africa grew 10.1% year-on-year during March this year (2007).
Besides pointing towards persistently growing consumer spending, this growth also
supports the case for elevated interest rates in the country. REUTERS published this
on May 16, 2007.

Strong consumer appetite remains the key driver behind this rapid growth in the
largest economy of Africa over the past few years. Statistics South Africa, the
national statistics board of S.A., has said that the retail sales accelerated from
an annual 8.0% this February, and grew by 9.3% in the first quarter of this year
compared to same period last year (2006).

Increase in spending has resulted in skyrocketing the household debt to 73.8% of
disposable income. Imports were further boosted by the run off consumer demand, as
domestic supplies weren’t adequate to meet the need, as a result depressing
Rand and keeping trade-balance in deficit, as reported by REUTERS on May 16, 2007.

As per the RNCOS report “South African Retail Industry Forecast (2007-2011)\",
“S.A. is the most developed retail market in the entire MEA (Middle East and
Africa) region. Although sales plunged during the year 2002 in dollar terms owing to
significant depreciation in Rand during that period. But, from 2001 to 2006 overall
retail sales grew at a CAGR value of 15.53%. In 2006, total sales were estimated
around US$ 85.72 Billion, 7.39% up from previous year (2005).”

This report analyzes: market size and scope of growth of the retail industry in
South Africa, growth prospects and issues related to the industry, factors driving
growth in this sector, opportunities & challenges before the retailers in South
Africa, and various other issues critical to the success of retail industry in S.A.

About RNCOS E-Services Pvt Ltd.:

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.

For more information visit:
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Web Site =

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92

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