Against a backdrop of poor economic growth, unlikely to change soon, the outlook for consumer spending and hence JSE-listed retailers is not inspiring. This was the opinion of a “Masterclass” on the JSE retail sector, hosted by the Investment Analysts Society. I was a panel member along with highly respected analyst Syd Vianello.

Although the retail sector has modernised significantly, it has made poor strides in the private label/house brand space. In SA, private label sales have remained static at about 15% of total sales, compared with the US and UK, where private label sales are about 50% of total sales.

Private-label products in SA sell for only a small discount compared to the price of branded products. This contrasts to the UK where the differential tends be 30% to 50%, making house brands compelling and far cheaper buys...