South African personal goods retailers market driven by jewellery sales

Press Release   •   Jun 21, 2013 10:55 BST

The South African personal goods retailers market increases by 9% in current value terms in 2012, to reach R25.9 billion.

This was higher growth than in the previous year, which grew by a percentage point less. Growth was driven by channels such as jewellery and watch specialist retailers, as the products sold carry a much higher unit price, followed by media products stores, which accounts for the highest value contribution in overall leisure and personal goods specialist retailers.

The continued growth in the number of middle-income consumers significantly influenced the growth personal goods retailers.

From the end of the recession in 2010, consumers' incomes were under strain, especially those consumers within the lower LSM group, who saw limited income growth, personal goods retailers had to shift their focus towards higher-income consumers.

The number of outlets in the personal goods retailers market increased by 5% in 2012, to reach a total of over 15,000. Outlet growth was driven by companies such as The Foschini Group, which saw its number of outlets increase by 7% within leisure and personal goods specialist retailers.

Foschini's Total Sports retail format alone opened 19 outlets between 2007 and 2012. Retailers are increasingly aiming to spread their outlet coverage in order to reach a wider market and remain competitive.

Jewellery and watch specialist retailers recorded the highest current value growth of 13% across all channels in 2011. This growth was stimulated by the rising prices of common minerals such as gold and diamonds on commodity markets. Foschini's American Swiss was the leader in terms of both value sales and sales area in 2012.

Jewellery and watch specialist retailers in South Africa mainly attracts consumers with higher incomes, who mainly consider quality before price, and for this reason, the channel is expected to grow at a stable rate over the next five years and beyond.

For more information on the South African personal goods retailers market, see the latest research: South African Personal Goods Retailers Market

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.