South African retailers have had a challenging start to 2025, as seen in the rebasing chart for the year so far. Despite these pressures, the sector is gearing up to release its December trading updates, which typically highlight the festive season’s impact on revenues.
Here’s a quick look at how some key players have performed year-to-date and what to watch:
Rebasing chart year-to-date with the retailers as well as the Top 40 index.
Clicks (CLS): Down 1.03% YTD, Clicks has demonstrated relative resilience compared to its peers. Its defensive nature and focus on health and beauty continue to make it a go-to during uncertain times.
Mr Price (MRP): Down 7.41%, Mr Price has struggled under consumer pressure but could see a rebound if its value-oriented approach attracted festive shoppers.
Shoprite (SHP): Down 4.01%, Africa’s largest food retailer has outperformed most of its peers, supported by its defensive profile and low-price strategy. December updates will likely highlight steady footfall despite economic challenges.
Foschini Group (TFG): Down 1.27%, TFG’s performance reflects a mixed bag. International diversification and festive promotions might have provided support, but overall discretionary spending remains under pressure.
Truworths (TRU): Down 8.12%, Truworths has been the hardest hit among this group. Higher-end apparel may have faced challenges amid constrained consumer wallets, but festive season promotions could bring surprises.
Market Themes to Watch:
· Will December updates indicate a rebound, or are structural pressures too strong?
· Can retailers sustain growth into 2025, or will the YTD downward trend continue?
· How will these numbers affect investor sentiment and sector momentum?
What’s your outlook? Will South African retailers defy the downward trend or remain under pressure? Share your thoughts in the comments!
Let's hear your thoughts:
1. The retailers will rebound and end the month higher.
2. The Trading updates will confirm the year-to-date performance, and retailers will continue their downward trend.
3. The retailers will be unaffected by any reports released from December.
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