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NEWS BUSINESS SERIES
The retail landscape – a new era of business
In this five-part article series, we will be diving into the retail industry and explaining what makes it the overwhelming success it is today. This article, the first in a series, discusses the general landscape of the retail industry and where it is heading. // THE RETAIL SECTOR REMAINS A KEY INDICATOR OF CONSUMER SPENDING, WHICH DRIVES GROWTH IN THE ECONOMY //
really good locks
THE CURRENT LANDSCAPE
extensive knowledge and appreciation
Over the last year, it appears that
of current consumer behaviours and the
the South African economy’s woes
way to act within this context through
remain. The consumer and business
innovative solutions. The competitive
owner continue to feel the pinch; rises
nature and easily interchangeable
in the oil price, emerging markets
options that consumers have now
sell-off and increased VAT rates have
forced retailers to stay relevant in this
been among the contributing factors
convenience-based economy.
to a dismal economic climate. Although
One major advantage that retailers
South Africa’s full year economic
have that others may not, is their
outlook remains weak, there is a
maturity cycle. As the life cycle of a
positive sentiment that the economy
retail business matures more rapidly
would emerge from its recession by
than other types of business, it is easier
year-end, before improving to some
for them to change their strategies and
extent by next year.
reorganise their businesses based on
However, the retail market has
current consumer trends.
advanced in ways it never thought possible. The transformation in the
ANALYSIS OF TRENDS IN
process of shopping and shopping
THE RETAIL MARKET
behaviour over the last decade has
The retail sector remains a key
been extraordinary. The growth in online
indicator of consumer spending,
shopping, the changing mind-set of
which drives growth in the economy.
consumers, and the rise of digital and
This sector has been knocked hard
social media has led to a much more
in recent months by a weaker rand,
fragmented approach to shopping in
rising inflation and higher oil prices,
terms of what, where, how and why
which has cut into disposable income.
people buy. The online possibilities have
Group’s analysis, retailers have
activity, changing the focus of traditional
generally shown great resilience in
retail process into a more connected and
this difficult trading environment.
convenient relationship.
This may be due to a new model
Retailers must stay relevant in relation 5263A. Eureka Frt Knx ¼ pg M6 Handles DEC17 DIYTN
FEBRUARY 2019 DIY & INDUSTRIAL TRADE NEWS
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In contrast, from the Essential
opened the retail scope to international
being implemented by retailers: the
to the frequently changing habits of the
independent retailer model. The
consumer. To do this, they must have
independent entrepreneur’s ability to
