Released on: October 4, 2007, 3:57 am

Press Release Author: Shushmul Maheshwari

Industry: Marketing

Press Release Summary: 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.

Press Release Body: 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 cardholder 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.


About RNCOS:

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: www.rncos.com/Report/IM515.htm
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Web Site: http://www.rncos.com

Contact Details: RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com