Cape Town - It's turning out to be a very merry Christmas for retailers as tills jingle and queues snake all the way to the back of shops.
According to Statistics SA, the months of October, November and December account for around 29% of annual sales.
Retailers, who have traded in a tough economy all year, are justifiably gearing up to cash in over the
festive season as consumers get ready to go on holiday and embark on
shopping sprees.
Given that about 50% of all these transactions will be done in cash, the festive season is a potential cash
jackpot for South Africa’s retailers.
However, as busy as retailers are this season, many say customer spending has not quite matched the Black Friday spike at the end of last month.
Senior economist at FNB
Siphamandla Mkhwanazi said this year, retail sales had softened ahead of the festive season due to customers spending on Black Friday.
Mkhwanazi said: “This is consistent with our view that households have become more price-sensitive and are more inclined to buy goods on
special.”
At Mr Price in St George’s Mall, the line of shoppers queueing to pay for their Christmas shopping, mainly clothes, accessories and mobile phones, snaked right through the shop.
Staff member Arthur John Kalanje said: “For the cellphones and tablets on Black Friday, we made double the target. If we had extended our opening times, we would have made even more This year, our in-store accounts are doing very well, with people regularly opening accounts, especially in the run-up to Christmas.”
Managing director at TK Sports SA Rassie Pieterse said: “We all know that South Africa’s economy is in a difficult space where some are battling to have enough for the basics and others are saving for that rainy day.”
“The one thing I must say, however, is that Black Friday worked very well for us and I think many people tended to buy their Christmas gifts then.”
Nick Dreyer, group chief executive of Dorp, makers of South African shoe brand Veldskoen, said: “While our products tend to be seasonal and sales are often best in winter, this year we have had a bit of a bump for Christmas sales.”
Veldskoen, which sells its products both online and through shops such as Woolworths, Outdoor Warehouse as well as through a number of independent retailers, said: “In two years we have gone from annual sales of 10 000 to 40 000 this year.”
At Shoprite in the Golden Acre Shopping Centre, a staff member who agreed to speak to us anonymously, said: “In our shop, people are buying mostly luxuries such as toasters and microwaves, as well as coffee machines, slow cookers, mixers, blenders, and even novelty appliances. Fruit and veg and bakery items such as cakes are also doing well.”
At the OK furniture shop in the centre, business was brisk.
At Bradlows, a member of staff said: “A lot of the goods we sell in this shop over the Christmas period tend to be transported to the Eastern cape.”
@MwangiGithahu