South Africa Retail, Home Shopping, E-Commerce Report 2010

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Publication Date May 2010

Language English

Format PDF & PowerPoint

Number of Pages/Charts 59

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South Africa Retail, Home-Shopping, E-Commerce Report 2010 May 2010

RESEARCH ON INTERNATIONAL MARKETS

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We deliver the facts – you make the decisionsRESEARCH ON INTERNATIONAL MARKETS

May 2010


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South Africa Retail, Home-Shopping, E-Commerce Report 2010

Key Findings

Company and Product Information

Covering Retail, Home-Shopping / Direct Selling and B2C E-Commerce

• Accordingtoestimates,thecountry‘sretailsaleswillgrowfromUSD64billionin2009toUSD106billionby 2014.

• Forecastsdon’tseeasharpbouncebackoftheretaileconomyin2010.

• Verimark,HomemarkandGlomailareamongthetopmail-ordercompaniesinSouthAfrica.

• Atleast15%ofthetotalInternetusershadshoppedonline,andonlinesalescontributedbelow1%oftotal retail sales in 2009.

• Despitethelowcurrentonlineshoppingdemand,onlineretailshoppingisexpectedtocontinuetogrow stronglyforatleastthenextdecade.

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Table of Contents

4. B2C E-Commerce

• AfricaTop10InternetCountries,byMillionof Users,June2009• InternetUsageGrowthDrivers• InternetAccessTechnologiesinSouthAfricaby Usage,in%,2009• ReasonsforAccessingtheInternet,in%,2009• MobileInternetTrendsinAfrica• B2CE-CommerceTrends• B2CE-CommerceDemand• B2CE-CommerceGrowthDrivers• B2CE-CommerceExpectationsfor2010• OnlineShoppingHabits• ConsumerResearchActionsintheInternetbefore Buying,in%,2009• ReasonsforBuyingOnlineandnotBuyingOnline, in%,2009• OnlinePaymentMethods,in%,2009• OnlineMarketingTrends2010• LeadingB2CE-CommercePlayers;byAssortments• LeadingB2CE-CommercePlayers;byUnique VisitorsandAudienceReach,February2010• CompanyNews:Kulula.com• CompanyNews:PayPal

1. Economy and Demographics

• SouthAfricavsOECDComparison• Economic Facts• DemographicFacts

2. Retail

• RetailSalesTrendsandBasicData• RetailSalesTrendsinQ12010• SeasonallyadjustedtotalRetailTradeSalesat constant2008Prices,monthly,inZARmillion, 2003-Feb 2010• RetailersandtheRecession• RetailCategorySalesTrends• ShareoftotalRetailSales,byProductCategory, in%,2009• TechnicalConsumerGoodsMarket,byCategory, Q1-Q42009• ClothingandTextileRetail• DistributionChannelsandtheirMajorPlayers• LargestRetailCompaniesinSouthAfrica2010 amongthebiggestGlobalRetailCompanies• CompanyNews:Shoprite• CompanyNews:PicknPay• CompanyNews:Walmart

3. Home-Shopping / Direct Selling

• Mail-orderSalesTrends• LeadingB2CMail-orderPlayers,byAssortments• Direct Selling Players



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Samples



It is estimated that sales of textiles, clothing, footwear and leather goods amounted to USD 12 bil. in 2009, or 19% of the total retail market.Share of total Retail Sales, by Product Category, in %, 2009

10%

19%

Electronics

Textiles, Clothing,Footwear

7%

%

Home Decor

Electronics

Retails Sales Volume 2009:USD 63.6 billion

6%

4%Cosmetics and

Furniture andAppliances

4%

0% 5% 10% 15% 20%

Cosmetics andToiletries

in %

Source: Business Monitor International, April 2010


Clothing retailers in SA see no quick end to a slump that has battered consumer spending for the best part since 2008.Clothing and Textile Retail

Clothing retailers in SA see no quick end to a slump that has battered consumer spending for the best part of two years.Truworths and Woolworths last week warned that spending was likely to remain weak. “Management does not currently anticipateTruworths and Woolworths last week warned that spending was likely to remain weak. Management does not currently anticipateany marked improvement in consumer spending over the balance of the financial year,” said Truworths, which holds a 20% shareof the middle to-upper market range.

The higher-income shoppers that form retailer Woolworths' “customer heartland”, as CEO Simon Susman put it, were starting toemerge from their shells, but not much. “We don't expect a splurge on spending at all.”

Clothing retailers have battled as sales of clothing, footwear and leather goods declined in 12 of the past 24 months, officialfigures say. What makes a recovery worse is continued joblessness and tight credit controls. “It's very different to what they wouldhave expected coming out of recession,” said Chris Gilmour, a retail analyst at Absa Investments. “The difference this time aroundis the extent of the chronic unemployment problem is as bad as ever. Second is the very direct and potent effect of the (2007)National Credit Act.”

Truworths said pretax profit for the half-year to December rose 10% to R1,27bn. Sales rose 12% to R3,7bn. These numbers wereboosted by 38 new stores opened in the 12 months to December.

Woolworths, which has a 15% share of the clothing market, said pretax profit fell 23% to R956m, lowered by the sale of thecompany's financial services arm to Absa bank in October 2008. Clothing and general merchandise sales rose 9.7% to R4,1bn.

Truworths, which makes 69% of its sales on credit, said its debtors' book grew 11% to R2,8bn year on year. Woolworths' debtors'book grew by 1.2%.

Separately, privately held retailer Edcon, which makes 51% of its sales on credit, on Thursday, 18 February 2010, said sales fell6.4% in the third quarter compared with the same period a year earlier due to tighter credit restrictions, the introduction ofmandatory cellphone registration, and worse sales of ladies wear and home textiles.

Source: Business Day SA, 2010

mandatory cellphone registration, and worse sales of ladies wear and home textiles.


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South Africa Retail, Home Shopping, E-Commerce Report 2010

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