Cautious spending this festive season

He said the festive period was an important time for retailers but the economic growth was relatively muted. “The continuous rise in the cost of living in South Africa means that consumers are finding themselves under more and more pressure,” added Templeton. He pointed out the soaring food prices and travelling costs, while debt was high and savings were poor. “In general, foot counts and spends peak over the festive season. However for smaller centres like convenience centres and also centres in some CBDs, the festive season trading impact is not that high,” explained Templeton. With the current economy in mind, Templeton believes that this year’s festive trade will increase, albeit marginally from 2012. “The trend in the last year or two has been for growth in revenue at our centres in line with inflation, with foot count being relatively flat, this is expected to continue,” he said. With savings levels still under pressure, Templeton noted that credit would probably still play an important role this year. “A worrying factor is the latest reports indicating a decrease in cash withdrawals – an indication that consumers are tightening their belts and increasingly turning to credit,” he said. “Supermarkets, fashion and clothing stores, eateries, beauty and electronic stores will benefit more than other stores this festive season.” According to Templeton’s analysis, online shopping will play a bigger role this year as more consumers have smartphones and access to the Internet. “But internet penetration and effective, timeous deliveries are still an issue for consumers, who also want the holiday spirit they experience at our malls,” he said.