Stefan Salzer, partner and managing director Boston Consulting Group South Africa added the decline in household goods was due to the increasing stress on discretionary spend in middle class households.
Retail sales declined 2.3% in January 2017, according to data released by Statistics South Africa (StatsSA), this is the worst performance since 2009.
Sales were down from an annual growth of 1% reported in December 2016. “The latest annual growth rate was well below market expectations for an increase of 1.1%,” said Kevin Lings, chief economist at Stanlib. “It is also the largest annual decline in retail sales since the global financial market crisis in 2009,” he said.