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Despite the pressure on consumer spending, South Africa seems to be expanding its bandwidth in shopping malls. In 2022, it added over 800,000 square meters of new regional shopping mall space. Surveys show that malls have become an ingrained part of consumer culture in South Africa
Despite the pressure on consumer spending, South Africa seems to be expanding its bandwidth in shopping malls. In 2022, it added over 800,000 square meters of new regional shopping mall space. Surveys show that malls have become an ingrained part of consumer culture in South Africa.
The latest BER retail trade survey suggests that after months of resilience, the retail sector has succumbed to harsh trading environments in South Africa. There is a drop in business confidence with expected lower sales on the horizon. The survey report puts that elevated consumer price inflation and large interest rate hikes limited consumers’ disposable income. Consumers, therefore, are directing their disposable income more towards meeting their essential requirements rather than on conventional retail goods.
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BER’s retail trade survey for Q4 showed that retail confidence has dropped from 51% in the third quarter to 42% in the fourth quarter. The survey data also shows certain shifts in the popularity of iconic malls. Mall of Africa is rivaling Sandton City as the Gauteng retail mecca – meanwhile, Canal Walk is indisputably Cape Town’s center of the shopping universe, taking the crown from the V&A Waterfront.
