Shopping centres across the country are reporting good growth figures for the traditionally quiet post-Christmas season - but retailers warn this could be a flash in the pan as a result of panic buying.
Menlyn Park in Pretoria recorded a 34% increase in turnover measured against January last year, and February 2002 shows a similar trend, says the centre's Lisa Skinner, while Canal Walk reports a tenant turnover increase of 25% for January.
Also in Cape Town, Tyger Valley centre manager Johan Venter says turnover for January is up 18% percent on last year. He expected only 12%.
He says the rand's poor performance is largely responsible, as consumers were rushing to buy white and luxury goods at 'old stock' prices, before new price increases make these items unaffordable.
He says the weakening rand was also the reason for shorter holidays or people not going away at all - resulting in more time spent at the local mall.
Venter warns though that it is dangerous to jump to conclusions based on short-term figures, saying a five to six month period would be more revealing of consumer spending trends. His feeling is that the trend will flatten out since the 'rand scare' has now run its course.
'The growth experienced everywhere is directly the result of this scare, and has led to consumers overspending to purchase goods they may not get a chance to buy at the same price later. That's why interest rates are up - to help curb excessive consumer spending.'
Venter says the February figures will be largely indicative of the trend to come, as the rand panic will have been discounted. 'But also February is traditionally a quiet month, in which the normal family spending pattern starts to establish itself. It is thus a good indication of what to expect for the rest of the year,' he says.
Canal Walk general manager Mickey Radowsky says the total tenant turnover for the month had been in excess of R190m, against R154m the previous year. He is ecstatic about the results, saying he only expected these kinds of results in the centre's third year of trading.
He says the centre is receiving many enquiries from retailers and food operators who had previously adopted a wait-and-see approach to Canal Walk, and ascribes the growth to the large number of domestic and foreign tourists.
From Durban, Gateway's Mike Rodel says while January shopper flow and sales figures continued strongly due to the extended holiday period, February has seen a drop-off, both as a result of the traditional post-Christmas slump, and due to the drop-off in tourist activity, which forms a key part of Gateway's market.
Publisher: Rode
Source: Rode
Shopping centres across the country are reporting good growth figures for the traditionally quiet post-Christmas season - but retailers warn this could be a flash in the pan as a result of panic buying.
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