Who is winning in retail amid economic pressures?

Steven Hurwitz

Retailers initially benefited from post-election momentum and hopes of gross domestic product (GDP) growth, but with limited economic reforms materialising, optimism has faded. The two-pot retirement system was expected to inject billions into consumers’ pockets, with the South African Revenue Service (SARS) last estimating the figure to be around R43 billion. While still significant compared to the social relief distress grant, it hasn’t had the anticipated impact on retail spending. High taxes on withdrawals and financial strain indicate that consumers used the money to pay for essentials such as school fees and debt rather than discretionary purchases. The real issue remains South Africa’s sluggish economy. Fourth quarter GDP growth was just 0.6%, largely due to a rebound in agriculture from a weak base, meaning no real per capita improvement. Debt-to-GDP…

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Star South Africa (Digital) - 1 Issue, 2025-03-10

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