Business confidence among retailers may be back at the long-term average, but those in domestic clothing retailers are being hit hard by online competitors like Shein.
The survey was notably done before the general election, which led to substantial uncertainty in respondents’ outlook.boosted retail confidence,” said the BER. Confidence among furniture retailers and new vehicle dealers also dropped, with these sectors also vulnerable to high interest rates.“Despite improved confidence, retailers of non-durable goods are more pessimistic about sales“Stats SA reported a 1.9% increase in sales volumes for the first quarter, but the BER survey results suggest that the trend may weaken this quarter.
“However, consumers’ real disposable income will be constrained for as long as real interest rates remain high, with a particular impact on furniture retailers and new vehicle dealers.”While Shein and other retailers like Temu have been putting local retailers under pressure, tax changes expected to come into effect from 1 July may put a stop to this.
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