Retailers under pressure as consumers tighten their belts

Stefan Salzer, a partner and managing director of Boston Consulting Group South Africa, was quoted saying the entry of international players such as H&M, Zara, and Cotton On had put more pressure on local players Mr Price, Truworths, Foschini and Edcon. Salzer believed that the retail industry as a whole was under pressure from the recession.

As Stuttafords, the country’s oldest luxury brand, prepares to close down next month, retailers are expected to come under pressure with South Africa’s technical recession and rising unemployment.

The clothing sector is under severe pressure - as clothing is classified as “discretionary spend” from a consumer’s budgetary perspective, meaning that when people are short of cash, they cut back in such areas, Stefan Salzer, a partner and managing director of Boston Consulting Group South Africa, said yesterday.