Stats sa takes a look at five facts that you might not have known about the retail trade industry. Retail groceries and supermarkets are the niche with the largest potential for retail growth among south african retailers. Competition within the south african retail market is rife. South african retailers focus on expansion outside the. The publication luxury fashion industry south africa provides the reader with. A research study on south african fashion industry. South african clothing and textile industry trends and analysis. Trends and characteristics of the african retail market. We hope this report will enhance your understanding of some of the risks but more importantly the opportunities that africa has to offer, and provide the groundwork for deeper conversations. Five facts about the retail trade industry statistics. Results from apparel retailers in the past month have made it abundantly clear that south african household. It is generally perceived that the clothing industry is.
This pestle analysis will examine the many situations south africa is currently experiencing that may affect businesses within it. According to national bargaining council statistics, as of june 2004 there were 827 clothing firms in sa, with 327 located in the western cape, 239 in the. On sunday, the foschini group, truworths, mr price group, woolworths and pepkor said after their discussions with the property industry group, they came up with a counter proposal, offering to pay r220 million. Country analysis about south africa geography located at the southern tip of the african continent, south africa borders namibia, botswana. Spar group ltd operates 6 distribution centres, supplies goods and services to almost 800 spar stores in south africa.
Read article about a research study on south african fashion industry and more articles about textile industry at fibre2fashion. The national clothing retail federation of south africa represents the interests of retailers who are the favoured destinations of millions of men, women and children when choosing their clothing, footwear, fashion accessories, cosmetics and related items. Pestelpestle analysis of the fashion retail industry. Retail sales growth, as measured by statssa, remains positive on a constant price basis. Two cities in south africa, cape town and johannesburg, are rated in the global top 40 in importance in this area. Retail lockdown clothing retailers offer to pay 20% of their rental apr 12 2020 18. African powers of retailing new horizons for growth. The retailing in south africa market research report includes. Retail sector growth losing steam statistics south africa. The south african textile and clothing industry an overview. The ecommerce market segment fashion includes the online trade of articles of apparel for men, women and children, shoes. Size and state of the industry with 18 player profiles. See our granular analysis from around the world and access fitch solutions reports and insights by region and country. Subsaharan africa remains one of the fastest growing regions in the world and the successful expansion of.
One of the top manufacturing powerhouses on the continent, south africa has a strong industrial tradition dating back 150 years. South africa republic of retail foods south africa. According to euromonitor, the popularity of retail supermarket chains continues to rise among the largest portion of low to middleincome south african consumers. Click here to instantly access all the reports, in one place.
South africas retail sector growing and drawing in new. Section iii concludes and provides cluster specific recommendations. But companies outside the country question whether to expand into it due to several issues. The future of retailing in the south africa to 2018 published. Innovative brands now understand that, in order to realize the full potential of the retail industry, overcoming the logistics quandary is an absolute priority.
Globalization, it, internet and increased use of mobile devices for shopping all these are affecting sales, marketing and consumer choices. Ncrf national clothing retail federation of south africa. A large part o the 21 st century growth story of fashion retail can be attributed to the technological developments that have happened in this era. South african retailers focus on expansion outside the continent 1. From greater personalization to social shopping, retailers are finding technologically driven ways to meet shoppers needs these are the retail trends we can expect to see in 2019. Prospects in the retail and consumer goods sector in ten. The biggest players in south africas retail industry. Data published by statistics south africa shows that volumes of goods produced by the south african manufacturing industry has increased by just 7. In this report, we focus our analysis on ten african economies that we believe offer some of the most compelling opportunities for retail and consumer businesses looking to expand in africa. Ecommerce remained the most dynamic area of retailing in south africa in 2019, with mobile ecommerce seeing especially strong growth.
This report was written in cooperation with maritz africa. The south african textile and clothing industry an overview the main aim of the south african textile and clothing industry is to use all the natural, human and technological resources at its disposal to make it the preferred international supplier of textiles and apparel. Analysis of sector dynamics the south african clothing industry is concentrated in three provinces. Although there have been substantial losses, employment in the textiles sector in developed countries has generally held up much better than clothing employment nordas 2004. Noteworthy characteristics of the african retail market. No retail discussion is complete without reference to the proliferation of online retail. South africans spent r31 900 per second in retail stores in 2017.
Clothing retailers are at the sharp end of sas political and economic turmoil. We would like to show you a description here but the site wont allow us. As in 2017, the 2018 report includes innovative analyses featuring seasonal trend analysis and breakdowns of retail trade sales patterns according to the type of outlet. So much in store prospects in the retail and consumer goods sector. Business was more favourable during the recent christmas season when compared with december 20, with retail sales increasing by 3,4% in real terms. The south african trade industry is made up of five divisions. Spar has a presence in 12 african markets, which account for 17 percent of its global retail turnover. A decline in retail sales is causing a devastation in the local industry, he said, adding that boosting exports would be vital to. South africa retail food industry retail foods south africa. Final paper most updated printing clothing and textiles. The informal retail market is still significant according to the united nations economic commission for africa uneca, the african retail market is characterised by approximately 90% of transactions occurring. The results reflect a constrained south african and australian client and are suggestive that the turnaround strategy in these operations may take longer than was originally expected. African countries giving united states companies that do business with south african retailers a gateway to the rest of subsaharan africa.
A strategic assessment of the south african clothing sector. Competition increases in south african retail environment. South africa is improving conditions for budding businesses. While recent macroeconomic difficulties have affected parts of the market, it has continued to grow and draw in a number of new international brands looking for a launchingpad to the rest of the continent. One of africas largest and most affluent markets, south africa has a welldeveloped retail sector, including a number of major domestic players. However, despite better sales during the festive period, the longerterm pattern. Clothing stores were second, employing 23% of the retail workforce. The report is the first in an annual series where we track the progress of the top african retail performers on the continent. Digital will fundamentally change the way consumers experience the south african instore retail environment in the foreseeable future, and we aim to be the forerunners of innovation in this space. Clothing retailers are at the sharp end of sas political. Retail companies based in africa and listed on the.
Download all the latest market reports you need on the retail industry in south africa. New restrictions for south african businesses coming back from lockdown. While kaplan noted that online is still quite small in south africa, occupying roughly 2% to 3% of the. Detailed segmentation of international and local products. It is already the biggest retail market in subsaharan africa, and the 20th largest in the world, with a wide array of shopping malls and retail developments, as well as a. The number of households in south africa that will include an ultrahigh net worth is forecast to grow by 59% by the year 2024. We have set out to provide a comparative macroview of africanbased or home. South africas manufacturing industry south african. Research retail trends report south african property owners.
The competition in the sa retail market is intense broll. South african economic growth and retail trade sales in particular. Retail sales for the ctfl market were estimated at r170bn in the same year. According to statistics south africa statssa, the local clothing, textile, footwear and leather ctfl manufacturing subsector generated income of r55bn in 2016, with the clothing manufacturing segment accounting for r20bn. In this latest update on south africas manufacturing page we take a look at the index of volumes produced by the south african manufacturing industry. Total retail sales in south africa ecommerce share according to the united nations economic commission for africa uneca, the african retail market is characterised by approximately 90% of transactions occurring through informal channels. The future of retailing in the south africa to 2018. Five year forecasts of market trends and market growth. The past few decades, however, have posed challenges to the industry, with external and domestic factors weighing on sector growth. For example, online sales by south african clothing retailer mr. Technology is also a very important factor affecting the growth of the fashion retail industry. Todays customers expect more from brands than ever before, and its these demands that continue to push the industry forward.
South africa retail industry outlook and trading update. See and search our comprehensive research from north and latin america, the caribbean, africa, europe and the middle east. Historic number of stores, selling space and values, company and brand market shares. South african clothing and textile industry trends and analysis the number of households in south africa that will include an ultrahigh net worth is forecast to grow by 59% by the year 2024. As was the case in 2017, five south african retailers made the list of top retail groups, led by steinhoff, with shoprite entering into the top 100. To help revitalise the industry, the government and industry leaders have been working to stoke growth and develop valueadded industries. Idtt is supported by the department of trade and industry the dti and is housed in the. Sa aims to patch up threadbare clothing industry fin24.