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Retail stocks face another tough year as economic growth sputters

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Rising unemployment and the threat of load-shedding also cast a shadow over the sector

Retail stocks could be in for another rough ride in 2020, as the threat of load-shedding and an economy predicted to grow by less than 1% continue to cast a shadow over the sector.

The JSE’s general retailers index, which includes Massmart, TFG and Pepkor, has dropped by almost 8% so far in 2020 — after recording its biggest fall in 21 years in 2019.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

 

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