If you wanted to start off a low base, retail guys, you’ve got it
Fresh faces at Shoprite and Massmart have a heck of a job turning around shops in this wretched economy
It has been a torrid two years for SA’s retail sector. The narrow definition of unemployment is over 29%, trading updates by Shoprite and Massmart were far worse than expected, and Reserve Bank statistics indicate that SA is in the throes of the longest economic downturn since 1945. In the first quarter GDP shrank by 3.2%.
Shoprite predicted its headline earnings per share would be down by up to 20% for the year to end June 2019. It is a bitter pill to swallow.
Shoprite has been a strong favourite in the retail sector over the past two decades. It successfully penetrated much of the rest of Africa. Also, its target market in SA was the low end of the social spectrum, supported by growth coming from greatly increased numbers of social grant recipients. ..