An Economist at Econometrix Laura Campbell says the gains that have been made in retail trade sales will be reversed by the looting and destruction of property, which has affected retailers in various parts of the country.
Campbell’s comments follow the latest figures released by Statistics South Africa which show a 2.1% increase in retail sales in May 2021 compared with April 2021.
The main contributors to this increase were retailers in textiles, clothing, footwear and leather goods.
“Unfortunately, the outlook for the retail sector has been dealt a severe blow by the violence and looting that has engulfed KwaZulu-Natal, Gauteng and the Eastern Cape. It raises key downside outlook for the sector. These include food shortages, the transportation of food maybe depressed as infrastructure has been destroyed and as we’ve seen that there could be economically disruptive fuel shortages which will affect the transportation of goods.”
Discussion on the impact of unrest to SA’s food security:
Source: SABC News (sabcnews.com)