Retailing in South Africa
Euromonitor International's Retailing in South Africa report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
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Tables: 184 | Publication date: Apr 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Non-store retailing; Store-based retailing
Executive summary
Growing black middle class drives growth in South African retailing in 2007
Favourable economic conditions has resulted in the continuous growth of the black middle class in South Africa. Increased employment, social grants and the housing boom ensured that this group continues to grow at an estimated 30% per annum. The so-called “black diamonds” or black middle class account for 50% of total black buying power, greatly driving industry growth. The difference in annual buying power between the white population and the black middle class has narrowed from R100 billion to just R55 billion. This tremendous growth in buying power has greatly affected the development of the retailing industry in South Africa.
Increased distribution of leading retailers into rural and township areas
Leading retailers recorded growth in both outlet numbers as well as value sales due to the ever increasing penetration into previously largely untapped rural and township areas. Not only are leading retailers such as Pick ‘n Pay and Shoprite Holdings opening supermarket outlets in these areas, but there is strong growth in the number of more upmarket shopping malls in these regions. Malls such as the Maponya Mall in Soweto, South Africa’s largest township, and the shopping mall opening in Mthatha in the Eastern Cape, are providing great opportunities for non-grocery retailers such as clothing and footwear retailers, and leisure and personal goods retailers.
Large local holding companies characterise the industry
As a throwback from South Africa’s history of apartheid, retailing is dominated by several large South African holding companies which own the majority of the major retailing brands in the country. The holding companies operate in various sectors from grocery to clothing and footwear and furniture and furnishings brands. Not only do these companies offer a number of brands within a certain area of retailing, but they also ensure that they capture a core target audience, be it lower, middle or upper income consumers. However, the competitive environment may change when leading international players take an interest in the opportunities that South Africa increasingly has to offer.
Continued rise in popularity of store-based retailing
Whilst the numbers of South Africans who have access to, or own a personal computer is on the increase, access to the internet is still very much a luxury for a large number of people. Although internet connectivity is becoming cheaper due to the wider variety of broadband options on offer, it remains very much concentrated to middle and upper income earners. Therefore, whilst a growing number of working professionals are starting to shop on-line, the majority of South Africans prefer to purchase items from stores. Mistrust of the postal system and security in financial card transactions must also be overcome if non-store retailing is to experience any significant growth.
Solid growth expected over the forecast period
The increase in education, employment and living standards should greatly boost disposable income. Product innovation will maintain consumer interest, encouraging a general increase in consumer expenditure. With continued favourable economic conditions, the South African retail industry is therefore expected to record healthy forecast period growth.
Table of contents
RETAILING IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Growing black middle class drives growth in South African retailing in 2007
Increased distribution of leading retailers into rural and township areas
Large local holding companies characterise the industry
Continued rise in popularity of store-based retailing
Solid growth expected over the forecast period
KEY TRENDS AND DEVELOPMENTS
Strong growth of black middle class greatly impacts retailing in 2007
Greater penetration of leading retailers into rural and former township areas
South African consumers look for increased convenience when shopping
Favourable economic climate attracts leading international retailers
Increasing number of retailers include dispensaries within their stores
MARKET INDICATORS
Table 1 Employment in Retailing 2002-2007
MARKET DATA
Table 2 Sales in Retailing by Sector: Value 2002-2007
Table 3 Sales in Retailing by Sector: % Value Growth 2002-2007
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2005-2007
Table 5 Sales in Store-Based Retailing by Sector: Value 2002-2007
Table 6 Sales in Store-Based Retailing by Sector: % Value Growth 2002-2007
Table 7 Sales in Non-store Retailing by Sector: Value 2002-2007
Table 8 Sales in Non-store Retailing by Sector: % Value Growth 2002-2007
Table 9 Retailing Company Shares: % Value 2004-2007
Table 10 Grocery Retailers Company Shares: % Value 2004-2007
Table 11 Grocery Retailers Brand Shares: % Value 2004-2007
Table 12 Non-Grocery Retailers Company Shares: % Value 2004-2007
Table 13 Non-Grocery Retailers Brand Shares: % Value 2004-2007
Table 14 Non-store Retailing Company Shares: % Value 2004-2007
Table 15 Non-store Retailing Brand Shares: % Value 2004-2007
Table 16 Forecast Sales in Retailing by Sector: Value 2007-2012
Table 17 Forecast Sales in Retailing by Sector: % Value Growth 2007-2012
Table 18 Forecast Sales in Store-Based Retailing by Sector: Value 2007-2012
Table 19 Forecast Sales in Store-Based Retailing by Sector: % Value Growth 2007-2012
Table 20 Forecast Sales in Non-store Retailing by Sector: Value 2007-2012
Table 21 Forecast Sales in Non-store Retailing by Sector: % Value Growth 2007-2012
APPENDIX
Operating environment
Cash-and-carry/Warehouse Clubs
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
ABI (PTY) LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 ABI (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 3 ABI (Pty) Ltd: Competitive Position 2007
EDCON GROUP PTY LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Edcon Ltd: Key Facts
Summary 5 Edcon Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 6 Edcon Ltd: Competitive Position 2007
FOSCHINI GROUP PTY LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Foschini Group: Key Facts
Summary 8 Foschini Group: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 9 Foschini Group Ltd: Private label
COMPETITIVE POSITIONING
Summary 10 Foschini Group Ltd: Competitive Position 2007
JD GROUP LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 JD Group Ltd: Key Facts
Summary 12 JD Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 13 JD Group: Competitive Position 2007
MASSMART HOLDING LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Massmart Holdings Ltd: Key Facts
Summary 15 Massmart Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 16 Massmart Holdings Ltd: Competitive Position 2007
MR PRICE GROUP PTY LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Mr Price Group Ltd: Key Facts
Summary 18 Mr Price Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 19 Mr Price Group Ltd: Private label
COMPETITIVE POSITIONING
Summary 20 Mr Price Group Ltd : Competitive Position 2007
NEW CLICKS HOLDINGS LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 21 New Clicks Holdings Limited: Key Facts
Summary 22 New Clicks Holdings Limited: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 23 New Clicks Holdings Limited : Private label
COMPETITIVE POSITIONING
Summary 24 New Clicks Holdings Limited : Competitive Position 2007
PEPKOR PTY LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 25 Summary Pepkor Ltd : Key Facts
Summary 26 Pepkor Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 27 Pepkor : Competitive Position 2007
PICK 'N PAY STORES LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 28 Pick ‘n Pay Stores Limited: Key Facts
Summary 29 Pick ‘n Pay Stores (Pty) Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 30 Pick ‘n Pay Stores Limited: Private label
COMPETITIVE POSITIONING
Summary 31 Pick ‘n Pay Stores Limited: Competitive Position 2007
SHOPRITE HOLDINGS LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 32 Shoprite Holdings Ltd: Key Facts
Summary 33 Shoprite Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 34 Shoprite Holdings Ltd: Private label
COMPETITIVE POSITIONING
Summary 35 Shoprite Holdings Ltd : Competitive Position 2007
SPAR GROUP LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 36 Spar Group Ltd: Key Facts
Summary 37 Spar Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 38 Spar Group Ltd: Private label
COMPETITIVE POSITIONING
Summary 39 Spar Group Ltd: Competitive Position 2007
WOOLWORTHS HOLDINGS LTD - RETAILING - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 40 Woolworths Holdings Ltd: Key Facts
Summary 41 Woolworths Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 42 Woolworths Holdings Ltd: Private label
COMPETITIVE POSITIONING
Summary 43 Woolworths Holdings Ltd: Competitive Position 2007
HYPERMARKETS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 22 Hypermarkets: Value Sales, Outlets and Selling Space 2002-2007
Table 23 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 24 Hypermarkets Company Shares by Value 2004-2007
Table 25 Hypermarkets Brand Shares by Value 2004-2007
Table 26 Hypermarkets Outlets by Brand 2004-2007
Table 27 Hypermarkets Selling Space by Brand 2004-2007
Table 28 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 29 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
SUPERMARKETS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 30 Supermarkets: Value Sales, Outlets and Selling Space 2002-2007
Table 31 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 32 Supermarkets Company Shares by Value 2004-2007
Table 33 Supermarkets Brand Shares by Value 2004-2007
Table 34 Supermarkets Outlets by Brand 2004-2007
Table 35 Supermarkets Selling Space by Brand 2004-2007
Table 36 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 37 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
DISCOUNTERS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Discounters: Value Sales, Outlets and Selling Space 2002-2007
Table 39 Discounters: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 40 Discounters Company Shares by Value 2004-2007
Table 41 Discounters Brand Shares by Value 2004-2007
Table 42 Discounters Outlets by Brand 2004-2007
Table 43 Discounters Selling Space by Brand 2004-2007
Table 44 Discounters Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 45 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
CONVENIENCE STORES IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 46 Convenience Stores: Value Sales, Outlets and Selling Space 2002-2007
Table 47 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 48 Convenience Stores Company Shares by Value 2004-2007
Table 49 Convenience Stores Brand Shares by Value 2004-2007
Table 50 Convenience Stores Outlets by Brand 2004-2007
Table 51 Convenience Stores Selling Space by Brand 2004-2007
Table 52 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 53 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
FORECOURT RETAILERS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 54 Forecourt Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 55 Forecourt Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 56 Forecourt Retailers Company Shares by Value 2004-2007
Table 57 Forecourt Retailers Brand Shares by Value 2004-2007
Table 58 Forecourt Retailers Outlets by Brand 2004-2007
Table 59 Forecourt Retailers Selling Space by Brand 2004-2007
Table 60 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 61 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
MIXED RETAILERS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Mixed Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 63 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 64 Mixed Retailers Company Shares by Value 2004-2007
Table 65 Mixed Retailers Brand Shares by Value 2004-2007
Table 66 Mixed Retailers Outlets by Brand 2004-2007
Table 67 Mixed Retailers Selling Space by Brand 2004-2007
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 69 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
HEALTH AND BEAUTY RETAILERS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 70 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 71 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 72 Health and Beauty Retailers Company Shares by Value 2004-2007
Table 73 Health and Beauty Retailers Brand Shares by Value 2004-2007
Table 74 Health and Beauty Retailers Outlets by Brand 2004-2007
Table 75 Health and Beauty Retailers Selling Space by Brand 2004-2007
Table 76 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 77 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
CLOTHING AND FOOTWEAR RETAILERS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 78 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 79 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 80 Clothing and Footwear Retailers Company Shares by Value 2004-2007
Table 81 Clothing and Footwear Retailers Brand Shares by Value 2004-2007
Table 82 Clothing and Footwear Retailers Outlets by Brand 2004-2007
Table 83 Clothing and Footwear Retailers Selling Space by Brand 2004-2007
Table 84 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 85 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
FURNITURE AND FURNISHINGS STORES IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 86 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2002-2007
Table 87 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 88 Furniture and Furnishings Stores Company Shares by Value 2004-2007
Table 89 Furniture and Furnishings Stores Brand Shares by Value 2004-2007
Table 90 Furniture and Furnishings Stores Outlets by Brand 2004-2007
Table 91 Furniture and Furnishings Stores Selling Space by Brand 2004-2007
Table 92 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 93 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
DIY AND HARDWARE STORES IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 94 DIY and Hardware Stores: Value Sales, Outlets and Selling Space 2002-2007
Table 95 DIY and Hardware Stores: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 96 DIY and Hardware Stores Company Shares by Value 2004-2007
Table 97 DIY and Hardware Stores Brand Shares by Value 2004-2007
Table 98 DIY and Hardware Stores Outlets by Brand 2004-2007
Table 99 DIY and Hardware Stores Selling Space by Brand 2004-2007
Table 100 DIY and Hardware Stores Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 101 DIY and Hardware Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
DURABLE GOODS RETAILERS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 102 Durable Goods Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 103 Durable Goods Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 104 Durable Goods Retailers Company Shares by Value 2004-2007
Table 105 Durable Goods Retailers Brand Shares by Value 2004-2007
Table 106 Durable Goods Retailers Outlets by Brand 2004-2007
Table 107 Durable Goods Retailers Selling Space by Brand 2004-2007
Table 108 Durable Goods Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 109 Durable Goods Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
LEISURE AND PERSONAL GOODS RETAILERS IN SOUTH AFRICA
HEADLINES
OVERVIEW
SECTOR DATA
Table 110 Leisure and Personal Goods Retailers: Value Sales, Outlets and Selling Space 2002-2007
Table 111 Leisure and Personal Goods Retailers: Value Sales, Outlets and Selling Space: % Growth 2002-2007
Table 112 Leisure and Personal Goods Retailers Company Shares by Value 2004-2007
Table 113 Leisure and Personal Goods Retailers Brand Shares by Value 2004-2007
Table 114 Leisure and Personal Goods Retailers Outlets by Brand 2004-2007
Table 115 Leisure and Personal Goods Retailers Selling Space by Brand 2004-2007
Table 116 Leisure and Personal Goods Retailers Forecasts: Value Sales, Outlets and Selling Space 2007-2012
Table 117 Leisure and Personal Goods Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2007-2012
VENDING IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 118 Vending: Value 2002-2007
Table 119 Vending: % Value Growth 2002-2007
Table 120 Vending Company Shares by Value 2004-2007
Table 121 Vending Brand Shares by Value 2004-2007
Table 122 Vending Forecasts: Value 2007-2012
Table 123 Vending Forecasts: % Value Growth 2007-2012
HOMESHOPPING IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 124 Homeshopping: Value 2002-2007
Table 125 Homeshopping: % Value Growth 2002-2007
Table 126 Homeshopping Company Shares by Value 2004-2007
Table 127 Homeshopping Brand Shares by Value 2004-2007
Table 128 Homeshopping Forecasts: Value 2007-2012
Table 129 Homeshopping Forecasts: % Value Growth 2007-2012
INTERNET RETAILING IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 130 Internet Retailing: Value 2002-2007
Table 131 Internet Retailing: % Value Growth 2002-2007
Table 132 Internet Retailing Company Shares by Value 2004-2007
Table 133 Internet Retailing Brand Shares by Value 2004-2007
Table 134 Internet Retailing Forecasts: Value 2007-2012
Table 135 Internet Retailing Forecasts: % Value Growth 2007-2012
DIRECT SELLING IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 136 Direct Selling: Value 2002-2007
Table 137 Direct Selling: % Value Growth 2002-2007
Table 138 Direct Selling Company Shares by Value 2004-2007
Table 139 Direct Selling Brand Shares by Value 2004-2007
Table 140 Direct Selling Forecasts: Value 2007-2012
Table 141 Direct Selling Forecasts: % Value Growth 2007-2012