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    • Retail Furniture Appliances White Goods South Africa

    Retail of Furniture, Appliances and White Goods in South Africa 2023

    Stephen Timm | South Africa | 24 February 2023

    Retail of Furniture, Appliances and White Goods in South Africa 2021

    Stephen Timm | South Africa | 15 November 2021

    Retail of Furniture, Appliances and White Goods in South Africa 2019

    Nina Shand | South Africa | 11 April 2019

    Retail of Furniture, Appliances and White Goods in South Africa 2017

    Nina Shand | South Africa | 13 June 2017

    Retail of Furniture, Appliances and White Goods in South Africa 2015

    Nina Shand | South Africa | 27 November 2015

    Report Info

    Report Summary Table of Contents
    Enquire about this report

    Report Coverage

    This report focuses on the retail of furniture, appliances and white goods in South Africa and includes information on sales, key challenges and opportunities, notable players, developments and influencing factors. There are profiles of 26 companies including the major retail players JD Group, Shoprite and Lewis, second-hand retailers Cash Converters and Cash Crusaders and other notable players such as Tapestry Home Brands, Tafleberg, Weylandts, Teljoy and Takealot.

    Introduction

    • Sales of household furniture, equipment and appliances grew in 2021 as consumers spent heavily on refurbishing their homes.
    • Sales growth has since slowed and retailers have forecast a tough 2023 as consumers have come under pressure from increasing interest rates, and a slowing economy.
    • Power cuts have driven demand in appliances like gas stoves and cookers, while constraining operations for retailers, many of whom are looking to procure alternative energy sources to ensure trading is not disrupted.
    • Delays at ports and high shipping rates have resulted in many retailers sourcing more furniture from local suppliers, while online sales continue to grow.

    Strengths

    • Furniture manufacturing industry has government support.
    • Large retail chains with diversified brand portfolios.
    • Strong distribution networks and fast delivery.

    Weaknesses

    • Heavily dependent on economic conditions.
    • Low profit margins and the need for low-cost products.

    Opportunities

    • Demand for second-hand furniture and appliances is likely to increase, driven by constrained consumers
    • Development of platforms for online browsing and ordering.
    • Expansion into other African countries, particularly those with large, rapidly-urbanising populations.
    • Loadshedding is driving demand for certain types of appliances such as gas stoves and energy-saving appliances.
    • Port delays and high shipping rates have encouraged sourcing locally-produced furniture.
    • The increase in credit sales can net more income than cash sales, after interest is factored in.

    Threats

    • Carbon tax, which will include scope 2 emissions from 1 January 2026.
    • Exchange rate depreciation leading to increase in price of goods.
    • Furniture’s share of consumer spending is declining over the long-term.
    • Increasing cost of electricity, raw materials, transport and labour.
    • Loadshedding.
    • Slowing economic growth and high inflation has put consumer spending under pressure.
    • The ailing performance of Transnet’s freight rail and ports.
    • The increasing threat of crime and unrest.
    • The rise in credit sales and the slowing economy could increase the risk of consumers defaulting on payments.

    Outlook

    • Growth in home furniture and appliances sales is expected to slow as consumer spending remains constrained by high inflation, slow economic growth, unemployment and loadshedding.
    • These challenges are compounded by the trading disruption from ongoing power cuts.
    • Some retailers serving the upper-end of the market reported good sales growth in 2022, and are optimistic in the short-term.
    • Several retailers have expanded by launching new retail brands or through acquisitions, which suggests competition could increase in the sector.

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    Retail of Furniture, Appliances and White Goods in South Africa
    Retail of Furniture, Appliances and White Goods in South Africa 2023

    Full Report

    R 6 500.00(ZAR) estimated $367.12 (USD)*

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    Industry Landscape

    R 4 550.00(ZAR) estimated $ 256.99 (USD)*

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    Historical Reports

    Retail of Furniture, Appliances and White Goods in South Africa 2021-11-15

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    Retail of Furniture, Appliances and White Goods in South Africa 2019-04-11

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    Retail of Furniture, Appliances and White Goods in South Africa 2017-06-13

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2015-11-27

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    2.3. Size of the Industry 6
    3. LOCAL 8
    3.1. State of the Industry 8
    3.2. Key Trends 14
    3.3. Key Issues 17
    3.4. Notable Players 18
    3.5. Trade 19
    3.6. Corporate Actions 23
    3.7. Regulations 24
    3.8. Enterprise Development and Social Development 25
    4. AFRICA 26
    5. INTERNATIONAL 31
    6. INFLUENCING FACTORS 34
    6.1. Economic Environment 34
    6.2. Labour 34
    6.3. Environmental Issues 36
    6.4. Technology, R&D, Innovation 38
    6.5. Government and Sector Initiatives 40
    6.6. Input Costs 40
    6.7. Nearshoring 41
    6.8. Crime and Unrest 42
    6.9. Cyclicality 42
    6.10. Logistics 43
    7. COMPETITIVE ENVIRONMENT 45
    7.1. Competition 45
    7.2. Ownership Structure of the Industry 46
    7.3. Barriers to Entry 47
    8. SWOT ANALYSIS 48
    9. OUTLOOK 48
    10. INDUSTRY ASSOCIATIONS 49
    11. REFERENCES 49
    11.1. Publications 49
    11.2. Websites 50
    APPENDICES 52
    Appendix 1 - Summary of Notable Players 52
    Appendix 2 - SIC Codes for Appliances and White Goods 59
    COMPANY PROFILES 61
    Botha en Barnard Meubelmakers CC 61
    Cash Converters Southern Africa (Pty) Ltd 62
    Cash Crusaders Franchising (Pty) Ltd 67
    Clicks Group Ltd 70
    Dynamic Bedding Retail (Pty) Ltd 74
    Fair Discounters (Pty) Ltd 76
    Forfive (Pty) Ltd 79
    Foschini Retail Group (Pty) Ltd 82
    Gumtree South Africa (Pty) Ltd 86
    HomeChoice (Pty) Ltd 87
    JD Group (Pty) Ltd 89
    Lewis Group Ltd 93
    Massmart Holdings Ltd 96
    Mr Price Group Ltd 101
    Nictus Ltd 107
    Pick n Pay Stores Ltd 110
    Pierre Cronje (Pty) Ltd 115
    SHF Living (Pty) Ltd 116
    Shoprite Holdings Ltd 118
    Tafelberg Furniture Stores (Pty) Ltd 123
    Takealot Online (RF) (Pty) Ltd 125
    Tapestry Home Brands (Pty) Ltd 130
    Teljoy (Pty) Ltd 134
    Trestle South Africa (Pty) Ltd 136
    Verimark Holdings (Pty) Ltd 138
    Weylandt\'s Furniture Cape Town (Pty) Ltd 141

    Report Coverage

    This report focuses on the retail of furniture, appliances and white goods in South Africa, and includes comprehensive information on the state and size of the sector, sales, trade, developments and corporate actions. There are profiles of 26 companies, including the major players JD Group, Shoprite and Lewis, which together account for just under half of industry revenue, second-hand retailers such as Cash Converters and Cash Crusaders and online retailers such as Takealot.

    Introduction

    This report focuses on the retail of furniture, appliances and white goods in South Africa. Furniture, white goods and appliances retailers recorded combined sales of R47.3bn in 2020, down 3.7% from 2019. The decline was slightly less than the 4.3% decrease in total retail sales and 7% contraction of South Africa’s economy in 2020. Between 2010 and 2019, industry sales grew at about 2.2% a year, from R40.9bn to R49.1bn, slower than the average annual growth of 9.2% in total retail sales over the same period. The furniture and appliance retail industry is one of South Africa’s smallest retail sectors, contributing 4.4% of total retail sales in 2020, down from 6.7% in 2010. In 2020 and early 2021, sales in the segment recorded strong growth, growing 17.5% between January and March 2021 over the same period in 2020, as customers, many of whom were stuck at home during the lockdown, stocked up on appliances and furniture. However, following the onset of the third wave of the pandemic, unrest in July and supply constraints, sales in the sector contracted in June, July and August 2021, by an average of 7.5% over the same period in 2020. The outlook for the sector remains uncertain given the pandemic and supply challenges.

    Strengths

    • Furniture manufacturing industry has government support.
    • Growth in the social housing market.
    • Large retail chains with diversified brand portfolios.
    • Supply chain transformation has led to strong distribution networks and fast delivery.

    Weaknesses

    • Capping of credit life insurance rates by the National Credit Regulator means the industry can no longer rely on this avenue for revenue.
    • Heavily dependent on economic conditions.
    • Low profit margins and the need for low-cost products.
    • Many large furniture manufacturers have shutdown, meaning retailers must often battle to get smaller manufacturers to supply products.

    Opportunities

    • Appliance manufacturers are opening new factories in South Africa and might require assistance running their own appliance-branded retail stores.
    • Development of platforms for online browsing and ordering.
    • Expansion into other African countries in the region, particularly those with large, rapidly-urbanising populations.
    • Smartphone and internet growth offers opportunities for online shopping, low-cost marketing and promotion, brand strengthening and market research and e-stores.

    Threats

    • Carbon tax, which will include scope 2 emissions from 1 January 2023.
    • Exchange rate depreciation leading to increase in price of goods.
    • Furniture’s share of consumer spending is declining.
    • Increasing cost of electricity, raw materials, transport and labour.
    • The pandemic, which has put consumer spending under pressure and led to an increase in unemployment.

    Outlook

    The economic outlook for South Africa remains uncertain. Sales of furniture and home appliances have declined in recent months, affected by the third wave of the pandemic, supply constraints and the unrest in July. While the Lewis Group reported that sales surged into the new financial year since end-March as customers’ credit health reached a multi-year high, but it expects trading conditions to become more challenging. CEO Johan Enslin said the discontinuation of the COVID-19 Social Relief of Distress grant, which came to an end in April 2021, could place further pressure on lower income customers. Shoprite said furniture sales were affected by the unrest in July 2021 and the high post lockdown base in Q1 2021. HomeChoice said the acceleration of the vaccine rollout is expected to provide relief to the country and support growth in GDP, and there are early indications of improvements in South African consumer credit health.

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    Retail of Furniture, Appliances and White Goods in South Africa
    Retail of Furniture, Appliances and White Goods in South Africa 2021

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

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    Historical Reports

    Retail of Furniture, Appliances and White Goods in South Africa 2023-02-24

    R 6 500.00(ZAR) estimated $367.12 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2019-04-11

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2017-06-13

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2015-11-27

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 13
    4.1. Local 13
    4.1.1. Corporate Actions 17
    4.1.2. Regulations 18
    4.1.3. Enterprise Development and Social Economic Development 20
    4.2. Continental 22
    4.3. International 28
    5. INFLUENCING FACTORS 32
    5.1. COVID-19 32
    5.2. Economic Environment 33
    5.3. Government and Sector Initiatives 35
    5.4. Increase in Imports 35
    5.5. Technology, Research and Development (R&D) and Innovation 36
    5.6. Rising Input Costs 38
    5.7. Labour 39
    5.8. Cyclicality 41
    5.9. Environmental Concerns 42
    5.10. Logistics 45
    6. COMPETITION 46
    6.1. Barriers to Entry 48
    7. SWOT ANALYSIS 49
    8. OUTLOOK 50
    9. INDUSTRY ASSOCIATIONS 50
    10. REFERENCES 51
    10.1. Publications 51
    10.2. Websites 52
    APPENDIX 1 54
    Summary of Notable players 54
    APPENDIX 2 62
    SIC Codes for Appliances and White Goods 62
    COMPANY PROFILES 63
    Botha en Barnard Meubelmakers CC 63
    Cash Converters Southern Africa (Pty) Ltd 64
    Cash Crusaders Franchising (Pty) Ltd 69
    Clicks Group Ltd 72
    Dynamic Bedding Retail (Pty) Ltd 76
    Fair Discounters (Pty) Ltd 78
    Forfive (Pty) Ltd 81
    Foschini Retail Group (Pty) Ltd 83
    Gumtree South Africa (Pty) Ltd 86
    HomeChoice (Pty) Ltd 87
    JD Group (Pty) Ltd 89
    Lewis Group Ltd 92
    Massmart Holdings Ltd 96
    Mr Price Group Ltd 102
    Nictus Ltd 108
    Nungu Trading 478 (Pty) Ltd 111
    Pick n Pay Stores Ltd 113
    Pierre Cronje (Pty) Ltd 118
    Shoprite Holdings Ltd 119
    Tafelberg Furniture Stores (Pty) Ltd 125
    Takealot Online (RF) (Pty) Ltd 127
    Tapestry Home Brands (Pty) Ltd 132
    Teljoy (Pty) Ltd 136
    Trestle South Africa (Pty) Ltd 138
    Verimark Holdings (Pty) Ltd 139
    Weylandt\'s Furniture Cape Town (Pty) Ltd 142

    Report Coverage

    This report focuses on the retail of furniture, appliances and white goods in South Africa, including information on the size and state of the industry and factors influencing its success. Developments including those at Steinhoff, the growth in online sales and expansion of South African furniture retailers on the continent are discussed. There are comprehensive profiles of 16 companies including major players such as JD Group, Shoprite and Lewis, that have a combined footprint of 2,040 stores in South Africa.

    Introduction

    This report focuses on the retail of furniture, appliances and white goods in South Africa. The furniture and appliance industry’s contribution to overall retail sales continues to contract from 5.4% of total retail sales in 2016 to 4.25%, equating to R44.48bn, in 2018. However, household furniture, appliances and equipment sales grew 10.6% in 2018 against overall retail sales growth of 2.1%, despite the fallout from the revelation of accounting irregularities at Steinhoff International in December 2017. Steinhoff owns a majority stake in Pepkor, the country’s largest furniture retailer. Slow economic growth, muted wage growth and high levels of consumer indebtedness have led to a challenging retail environment. Analysts are not expecting a change in business or consumer confidence until after the national election in May.

    Strengths

    • Furniture manufacturing industry has government support.
    • Growth in the social housing market.
    • Large retail chains with diversified brand portfolios.
    • Supply chain transformation has led to strong distribution networks and fast delivery.

    Weaknesses

    • Capping of credit life insurance rates by the National Credit Regulator means the industry can no longer rely on this avenue for revenue.
    • Heavily dependent on economic conditions.
    • Low profit margins and the need for low-cost products.

    Opportunities

    • Changes to affordability regulations’ documentation requirements will give more people access to credit.
    • Development of web platforms for online browsing and ordering.
    • Expansion into markets such as grocery and other untapped markets such as new low-cost housing owners.
    • Expansion into neighbouring African countries.
    • Smartphone and internet growth offers opportunities for online shopping, lower cost marketing and promotion, brand strengthening and market research and e-stores.

    Threats

    • Exchange rate depreciation leading to increase in price of goods.
    • Grocery retail competition review outcome may affect the market.
    • Increasing cost of electricity, raw materials, transport and labour.
    • South Africans’ decreasing share of wallet spend on furniture.
    • The planned introduction of a carbon tax.
    • Worsening economic conditions and increasing unemployment that will dampen consumer confidence and reduce disposable income.

    Outlook

    Despite the South African economy recovering from recession, economic conditions remain challenging, exacerbated by the VAT increase, the high cost of fuel, the volatile rand and the crisis at Eskom. As a result, local demand for furniture is expected to be subdued in 2019. Recovery will be subject to stronger economic growth, improved consumer and business confidence as a result of a conducive political environment and growth in the social housing market. Changes to the affordability assessment regulations are expected to benefit sales as prospective creditworthy self-employed and informally employed people will now be able to access credit. High indebtedness of households and the rising cost of living remain headwinds for growth in 2019.

    Read More..
    Retail of Furniture, Appliances and White Goods in South Africa
    Retail of Furniture, Appliances and White Goods in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Historical Reports

    Retail of Furniture, Appliances and White Goods in South Africa 2023-02-24

    R 6 500.00(ZAR) estimated $367.12 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2021-11-15

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2017-06-13

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2015-11-27

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Corporate Actions 8
    4.1.2. Regulations 9
    4.1.3. Enterprise Development and Social Economic Development 11
    4.2. Continental 13
    4.3. International 15
    5. INFLUENCING FACTORS 17
    5.1. Economic Environment 17
    5.2. Increase in Imports 17
    5.3. Information Technology, Research and Development (R&D) and Innovation 18
    5.4. Rising Input Costs 19
    5.5. Labour 20
    5.6. Cyclicality 21
    5.7. Environmental Concerns 22
    5.8. Logistics 24
    6. COMPETITION 25
    6.1. Barriers to Entry 27
    7. SWOT ANALYSIS 28
    8. OUTLOOK 28
    9. INDUSTRY ASSOCIATIONS 29
    10. REFERENCES 29
    10.1. Publications 29
    10.2. Websites 30
    APPENDIX 1 32
    Summary of Notable Players 32
    COMPANY PROFILES 38
    CASH CONVERTERS SOUTHERN AFRICA (PTY) LTD 38
    CASH CRUSADERS FRANCHISING (PTY) LTD 43
    CORICRAFT GROUP (PTY) LTD 45
    EDCON LTD 48
    FAIR DISCOUNTERS (PTY) LTD 52
    FOSCHINI RETAIL GROUP (PTY) LTD 54
    HOMECHOICE (PTY) LTD 57
    JD GROUP (PTY) LTD 59
    LEWIS GROUP LTD 62
    MASSMART HOLDINGS LTD 65
    MR PRICE GROUP LTD 71
    NUNGU TRADING 478 (PTY) LTD 76
    PICK N PAY STORES LTD 78
    SHOPRITE HOLDINGS LTD 83
    TELJOY (PTY) LTD 87
    VERIMARK HOLDINGS (PTY) LTD 89

    Report Coverage

    The Retail of Furniture, Appliances and White Goods report describes the current environment, the effect of changes to the National Credit Act which constrained consumers’ access to credit and other factors that influence the success of the sector. The report profiles 18 role players, including the JD Group, which has 745 furniture outlets and 112 consumer electronics and appliances outlets. Also profiled is another leader in the sector, Lewis Group Ltd which acquired 57 Ellerines and Beares stores for approximately R250m in early 2016, bringing its presence outside the country to 120 stores located in Nambia, Lesotho, Botswana and Swaziland.

    Introduction

    This report focuses on the retail of furniture, appliances and white goods in South Africa. The furniture and appliance industry is one of the country’s smallest retail sectors, contributing just 5.4% to total retail sales in 2016, equating to R41.3bn. Retailers experienced the weakest growth in seven years during 2016, with trade for household furniture, appliances and equipment showing negative growth for the period under review. The retail environment was negatively impacted by changes to the National Credit Act which constrained access to credit. The general political climate, coupled with low credit growth, low investment levels, and prolonged drought all impacted on consumer spending as the cost of living escalated. Analysts expect that the recent downgrading of South Africa’s economic prospects by ratings agencies Fitch, Standard & Poor and Moody’s will negatively impact growth in the period ahead.

    Strengths

    • Large retail chains with diversified brand portfolios.
    • Supply chain transformation has led to strong distribution networks and fast delivery.

    Weaknesses

    • Heavily dependent on economic conditions.
    • Low profit margins and need for low-cost products
    • Stricter credit lending regulations mean the industry can no longer rely on this avenue for sales.

    Opportunities

    • Growing black middle class increases demand for new furniture and white goods.
    • Smartphone and internet growth offers opportunities for online shopping, lower cost marketing and promotion, brand strengthening and market research and e-stores.
    • Untapped markets in sub-Saharan Africa as well as internationally.

    Threats

    • Exchange rate depreciation leading to increase in price of goods.
    • Worsening economic conditions and increasing unemployment that will dampen consumer confidence and reduce disposable income.

    Outlook

    With South Africa’s economy having unexpectedly fallen into a recession after the first three months of 2017, the furniture retail and credit environment is not expected to show any marked improvement in the short to medium-term. Companies are expected to focus on more cost-efficiencies and to expand into Africa and internationally as a way of growing sales and diversifying earnings.

    Read More..
    Retail of Furniture, Appliances and White Goods in South Africa
    Retail of Furniture, Appliances and White Goods in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Historical Reports

    Retail of Furniture, Appliances and White Goods in South Africa 2023-02-24

    R 6 500.00(ZAR) estimated $367.12 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2021-11-15

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2019-04-11

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Retail of Furniture, Appliances and White Goods in South Africa 2015-11-27

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 11
    4.1. Local 11
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 14
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 17
    4.3. International 19
    5. INFLUENCING FACTORS 21
    5.1. Economic Environment 21
    5.2. Technology, Research and Development (R&D) and Innovation 21
    5.3. Labour 23
    5.4. Cyclicality 25
    5.5. Environmental Concerns 26
    5.6. Logistics and Distribution 27
    6. COMPETITION 28
    6.1. Barriers to Entry 30
    7. SWOT ANALYSIS 31
    8. OUTLOOK 31
    9. INDUSTRY ASSOCIATIONS 32
    10. REFERENCES 32
    10.1. Publications 32
    10.2. Websites 33
    COMPANY PROFILES 34
    CASH CONVERTERS SOUTHERN AFRICA (PTY) LTD 34
    CASH CRUSADERS FRANCHISING (PTY) LTD 38
    CORICRAFT GROUP (PTY) LTD 40
    EDCON LTD 43
    FAIR DISCOUNTERS (PTY) LTD 47
    FOSCHINI RETAIL GROUP (PTY) LTD 49
    HOMECHOICE (PTY) LTD 52
    JD GROUP (PTY) LTD 54
    LEWIS GROUP LTD 57
    MASSMART HOLDINGS LTD 60
    MR PRICE GROUP LTD 66
    NUNGU TRADING 478 (PTY) LTD 70
    PICK N PAY STORES LTD 72
    SHOPRITE HOLDINGS LTD 77
    TELJOY (PTY) LTD 81
    UNITED FURNITURE OUTLETS (PTY) LTD 83
    VERIMARK HOLDINGS LTD 86

    Report Coverage

    The Retail of Furniture, Appliances and White Goods discusses conditions in the local sector, the responses of retailers to slow economic growth and factors influencing the sector’s success. The report also profiles 17 retailers, including United Furniture Outlets (Pty) Ltd t/a UFO, which has 28 stores countrywide, and the Mr Price Group, which has 166 Mr Price Home stores and 278 Sheet Street stores.

    Introduction

    This report focuses on the furniture, appliances and white goods retail industry in South Africa. The industry has been adversely affected by the unsecured lending crisis in the country which, according to the National Credit Regulator, has seen more than 45% of the 15 million credit active consumers in arrears. As nearly 70% of goods in this sector are bought on credit, over-indebtedness has led to slow growth. Furniture, appliances and white goods remain one of the smallest retail sectors and is highly concentrated with just four main players left in the market after the collapse of Ellerines at the end of 2014. The sector has seen weak consumer demand due to the escalating cost of living as increased pressure on consumer spending leads to low spending on durable goods. Retail sales have averaged just 5% from 2003 to 2015, according to Stats SA. The industry has responded by slowly moving into the African continent as well as seeking new distribution channels and improved logistics management.

    Strengths

    • Highly competitive market that is responsive to consumer demands and trends.
    • Increased spending on employee training and development is strengthening the retention of experienced and knowledgeable employees.

    Weaknesses

    • Growth in the retail trade of furniture and household goods is highly dependent on consumer spending and consumer confidence.
    • Stricter credit lending regulations mean the industry can no longer rely on this avenue for sales.
    • The furniture and appliances retail industry is a relatively small industry in South Africa.

    Opportunities

    • A growing middle-class and urbanisation in the regional market provides opportunities for expansion into these emerging markets.
    • Increased demand for products that can be used during power outages.
    • Smartphone and internet growth offers opportunities for online shopping, lower-cost marketing and promotion, brand strengthening and market research and e-stores.

    Threats

    • Consumer confidence and spending is dependent on macro-economic factors such as inflation and interest rates, which if unfavourable, threatens the growth of the industry.
    • Exchange rate depreciation leading to increase in price of goods
    • High operational costs as result of high input costs, particularly fuel.
    • Power crisis – load shedding and electricity shortfall
    • The reliance by some companies on in-store credit/unsecured lending.

    Outlook

    The EY/BER survey suggests that the outlook for the rest of 2015 has deteriorated on the back of further depreciation of the Rand, a rising fuel price, an increase in personal income tax for high income earners, withdrawal of the proposed R15bn reduction in UIF contributions, and declining consumer confidence levels. Retail sales volume growth is expected to remain at 2% year-on-year for 2015. The furniture retail and credit environment is not expected to show any marked improvement in the short to medium term as the consumer economy remains weak and unemployment high. Companies are expected to focus on more cost-efficiencies and to expand into Africa as a way of growing sales.

    Read More..
    Retail of Furniture, Appliances and White Goods in South Africa
    Retail of Furniture, Appliances and White Goods in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

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    Historical Reports

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    R 6 500.00(ZAR) estimated $367.12 (USD)*

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    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 13
    4.1.2. Regulations and Government Programmes 14
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 17
    4.3. International 19
    5. INFLUENCING FACTORS 20
    5.1. Labour Resources 20
    5.2. Economic Environment 21
    5.3. Credit and Debtor Book Management 21
    5.4. Rising Input Costs 22
    5.5. Cyclicality 23
    5.6. Information Technology 23
    5.7. Environmental Concerns 25
    5.8. Logistics and Distribution 26
    5.9. Research and Development (R&D) and Innovation 27
    6. COMPETITION 28
    6.1. Barriers to Entry 29
    7. SWOT ANALYSIS 30
    8. OUTLOOK 30
    9. INDUSTRY ASSOCIATIONS 31
    10. REFERENCES 31
    10.1. Publications 31
    10.2. Websites 32
    COMPANY PROFILES 33
    CASH CONVERTERS SOUTHERN AFRICA (PTY) LTD 33
    CASH CRUSADERS FRANCHISING (PTY) LTD 37
    CORICRAFT GROUP (PTY) LTD 39
    EDCON LTD 41
    FAIR DISCOUNTERS (PTY) LTD 45
    FOSCHINI RETAIL GROUP (PTY) LTD 46
    HOMECHOICE (PTY) LTD 49
    JD GROUP LTD 51
    LEWIS GROUP LTD 59
    MASSMART HOLDINGS LTD 62
    MR PRICE GROUP LTD 67
    NUNGU TRADING 478 (PTY) LTD 72
    PICK N PAY STORES LTD 74
    SHOPRITE HOLDINGS LTD 79
    TELJOY (PTY) LTD 85
    UNITED FURNITURE OUTLETS (PTY) LTD 87
    VERIMARK HOLDINGS LTD 89

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