STEEP PETROL PRICES SET TO TO KEEP PEOPLE AWAY FROM BIG SHOPPING CENTRES

THE RISING petrol price is expected to see consumers being more selective on what they spend their money on and how far they travel to buy goods. This could see them staying away from large shopping centres.

FNB commercial property economist JohnLoos says it is well-known that the cumulative fuel price increase has added significantly to overall consumer price inflation, and this week’s increase sustains the pressure.

And because people cannot avoid buying petrol, they will have to reduce their spending on non-essential items and delay some low-frequency purchases.

“We believe that this impact could be felt more in larger super-regional and regional shopping centres, which are more significantly focused on such purchases, including entertainment, eating out, and clothing and footwear retail.

“Smaller convenience and neighbourhood centres focused more heavily on essential food and grocery shopping are likely to feel this indirect impact of fuel inflation to a lesser degree.”

CONSUMERS will have to be selective about what they spend their money on and how far they travel to shop for goods PICTURE: IGOR KARIMOV/UNSPLASH