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Taking into account the lack of globalisation, South African retailers, predominantly food retailers are reasonably bigger than global competitors.

African retailing can be narrowed down to South African retailing, where the majority of the continent’s business activity occurs. Big cities like Johannesburg and Durban comprise of very large malls over 37 acres in size.

The spending power of the upcoming black middle-class consumer is constantly rising and is consequently improving South Africa’s key retail areas.

South African retail sales growth declined in December 2012 due to rising unemployment and inflation affecting demand of consumers. Consumers are battling modern day evils such as increased levels of household debt, limited rights to use credit, and an overall increase in the price of administered goods.

Consumer borrowing has been amplified, thus showing steady growth in the retail sector. However, lenders have become stringent in taking on already indebted consumers. This slower growth in credit may have a negative effect on retail growth.


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