Black Friday sales disappoint – study
COVID-19: RETAIL SPENDING DOWN AS VIRUS TAKES TOLL
‘Latest data reveals recovery economic activity is flattening out.’
It seems South African consumers held on tight to their wallets on Black Friday last year after a few difficult months that saw many people lose their jobs or receive a reduced salary, with seasonally adjusted retail trade sales rising by just 1.8% monthon-month in November.
Retail sales indicate consumers were hesitant to spend in a month popular for spending.
Black Friday happens on the last Friday in November and the fact that retail sales were down by 4% compared with November 2019 indicates the effect of the Covid-19 pandemic on finances.
According to NKC Research, which specialises in forecasts for major African economies, retail sales are expected to be even worse for December.
Other sectors, such as mining and manufacturing, also posted weak numbers in November, while new vehicle sales were down during the last quarter of 2020.
“The latest data releases revealed that the recovery period is over and that economic activity is in fact flattening out,” NKC Research said.
This latest reading followed a 0.5% month-on-month decline, the first negative reading since April. Retail trade sales fell by 4% in November compared with the previous year.
The drivers behind the 4% annual decline were the “other” retailers, general dealers, textiles and clothing (26.1%), shoes (5.6%) and food, beverages and tobacco categories.
In the three months ending in November 2020, seasonally adjusted retail trade sales increased by 4.3% compared with the previous three months, but total retail sales during the first 11 months of 2020 were still down 7.7% compared to the same period in 2020.
In the three months ending in November 2020, seasonally adjusted retail trade sales increased by 4.3% compared with the previous three months, but total retail sales during the first 11 months of 2020 were still down 7.7% compared to the same period in 2020.
The remaining three subsectors recorded positive annual growth, especially the household furniture (7.8%) and hardware categories (14%). –