SA Retail Outlook: Store Wars – Market Forces Awaken

Our outlook for 2016 show consumers in South Africa will have to deal with a potent cocktail of challenges – the consumer wallet may only grow by 5.3% nominal, the prolonged drought and the frail ZAR could drive up inflation, while access to easy credit is curtailed by onerous new credit application requirements. In this environment, we believe consumers could become highly price sensitive, and the retailers may have to respond with increased competitiveness.