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REGIONAL ECONOMY: Region (MRB Oct 01 2001): SA retailers spread into rest of Africa.
For a number of years SA retailers have reported a reduction in turnover, with the slowdown even affecting previously peak periods like Christmas. Interpreting this as the 'saturation' of the SA market, retailers are now entering markets in the rest of Africa in a big way.
Attempts to make headway in the Australian market have not been very successful and the feeling in the commercial sector is that the African markets are ones with which the SA retailers are relatively familiar.
Logistics are difficult in many of these countries, but it does not seem that the difficult infrastructure, communications and technological problems are standing in the way of the SA companies search for markets.
It is reported that those who have started operating north of the SA border have found their stocks turning over faster than in their stores in SA. Because there is a very limited retail infrastructure in most of these countries the SA retailers are able to dominate the markets. The expansion of SA supermarkets into Maputo caused ructions among local traders whose margins for food were suddenly undercut.
At the same time many businesses are cautious because they regard the risks of operating in ...
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