Truworths Research Report

Coronavirus impact on SA retailers’ supply chains

With growing concern regarding the Coronavirus crisis in China, SA retailers, particularly clothing retailers, may be vulnerable to a disruption in their supply chains as, historically, a significant portion of their merchandise is sourced from this country. The main risk is that Chinese factory workers’ return to factories may be delayed, the Chinese New Year was on 25 Jan 2020, and factories workers are expected back by 9 Feb. Some migrant workers may not return if there is a risk of contagion, or travel bans may be extended.