Coronavirus impact on SA retailers’ supply chains – Part 2

Subsequent to our earlier note on the impact of the Coronavirus on the retailers’ supply chains , we received feedback from TRU and WHL. We also consider the disclosures of Apple Inc., which provide insights into the return to production in China. The experience of Apple Inc. suggests that not all the workers are returning to factories, perhaps for health concerns, even in regions less affected by the outbreak. We believe there is now a higher risk that the SA clothing retailers may have lower stock levels in the months ahead.