Guiding consumers since 2009

Retailers upbeat about consumer spending this festive season

By Staff Writer
The results from the Bureau for Economic Research/Ernst and Young festive retail trend survey shows that South African retailers expect a more cheerful and profitable Christmas trading period this year .

The survey indicates that consumer spending will be moderate in the middle to lower income earners but high income earners are likely to indulge. In the survey 15% of retailers said they expect sales volumes over the festive season will improve, compared to 28% who said last year that they expect sales to be down.

Economists expect retail sales volumes to increase by more than five percent. It is expected that the more interest rate sensitive categories like furniture and appliances are expected to do well.

"When we conducted the survey last year the story was different, almost a third of the respondents reported a slowing down sales growth," Hugo Pienaar, a senior economist at the Bureau of Economic Research said.

"Indications are that this festive season will be a lot better than it was 12 months ago, the positive forecast is being boosted by retail sales numbers from Statistic South Africa (Stats SA)," Pienaar added.

Figures released by Stats SA last week showed that retail sales rose by 6.1% year-on-year in September. The figures came higher than what some analysts had expected, pointing to a revival in consumer spending, fuelled by interest rate cuts and the low inflation rate.

It is, however, important that consumers remember that over-indulging could catch up with them in the New Year and erring on the side of caution is better than piling up a mountain of debt.

Recent Articles

Featured Debt counselling – the two sides of the coin

Being overindebted doesn’t just put a strain on your personal finances; it also puts a strain on your state of mind. The best solution is to start the process of debt counselling so that you can escape the debt cycle. But what are the ups and downs of joining this debt relief programme?

Travel ban – how to claim for the loss incurred

As with the recent Covid-19 pandemic, governments sometimes issue travel bans to prevent people from travelling to other countries. This becomes even more complicated if you’ve already planned and paid for your trip. Your flights will be cancelled, and you may lose money from cancelled accommodation arrangements. How do you claim for the financial losses incurred due to a travel ban?

How to finance and insure a second-hand vehicle

Buying a second-hand vehicle may suit your budget better than acquiring a new one. But what impact does an older model have on vehicle finance and car insurance? We reached out to specialists in the field to explain what the financial implications are of pursuing a second-hand vehicle.

Reading your loan agreement: look out for this

Many people don’t read their loan agreements. They just sign on the dotted line without realising that they could be signing their lives away. But it’s important to review your loan agreement before and after taking your loan to avoid future setbacks.

 

Deals

Udemy online course for R180

Price: R180
When: Until 27 March 2020
Where: Online

Educate your kids for free with Skills Share

Price: Free
When: Daily
Where: Online

Take advantage of payment holidays from Standard Bank and Nedbank

Price: Free
When: From 1 April to 30 June 2020
Where: Nationwide