(3 Minutes Read)
The South African Bureau for Economic Research’s (BER’s) latest Retail Survey reveals that retailers’ business confidence extended its positive momentum over the past two quarters, increasing by nine percentage points to 54% in Q4 2024.
The South African Bureau for Economic Research’s (BER’s) latest Retail Survey reveals that retailers’ business confidence extended its positive momentum over the past two quarters, increasing by nine percentage points to 54% in Q4 2024. The outcome of the survey, which was conducted between 24 October and 11 November 2024, puts overall confidence at its highest level in three years; largely driven by lower inflation and interest rate cuts.
Looking at some of the specific findings, semi-durable goods retailers (clothing, textiles and footwear) were Q4’s most optimistic group. Their confidence rose to its highest level since Q3 2007, driven by significant improvements in their sales volume and profitability indices, stated the BER. Retailers of non-durable goods (food, beverages, groceries, cosmetics and pharmaceuticals) registered the largest uptick in volume growth, boosting their confidence after a third-quarter slump.
Meanwhile, confidence among retailers of durable goods (such as furniture, household appliances, and electronics) declined moderately in the fourth quarter. This marked a break from a two-quarter period in which they were the main contributors to rising overall retail confidence.
These retailers likely benefitted from two-pot retirement fund withdrawals, a possible driver for consumer spending in these categories. Additionally, confidence among wholesalers rose to its highest level in four years during the same period. This boost was primarily driven by the consumer goods sector, which showed strong performance. The rise in wholesaler confidence aligns with an uptick in retail sector confidence and volumes, indicating a recovery in consumer demand.
Read Also:
https://trendsnafrica.com/sas-retail-sales-dip/
The South African economy has benefitted from no load-shedding, political stability under the Government of National Unity (GNU), a relatively stronger rand, lower international oil prices, and two repo rate cuts since September, said the BER when discussing improvements in the Other Services confidence index.
Despite the one-point decline in consumer sentiment relative to Q3, the upsurge in the CCI since the end of 2023 points to a marked increase in consumers’ willingness to spend during this holiday season.
