Business

Retail sales continue resurgence

20 July 2010

Retail sales rose 4.6 percent in May 2010 compared with the same month last year, up from a revised 2.9 percent in April, Statistics South Africa reported last week.

The figure was better than expected, and May was the fifth consecutive month of annual expansion in the data following a year-long contraction.

"This is a very good number, and it shows that consumers are coming back," economist Mike Schussler said.

"One wonders if we do need an interest rate cut if retail sales are increasing like this," he said.

Schussler said retailers in appliances had reported good sales for May. "Everyone was perhaps buying new TVs for the World Cup. "

He said retailers in pharmaceutical and medical goods, cosmetics and toiletries had also experienced a good month.

"I put that down to sales of cosmetic products – the ladies wanted to look nice for Ronaldo – and then there's the hangover tablets that were also needed after the matches," Schussler quipped.

He said retailers in textiles, clothing, footwear and leather goods had also reported solid sales.

"We haven't been buying clothing for a long time so this is good ... we probably bought a lot of World Cup t-shirts."

Schussler said the hardware, paint and glass sector, however, was still negative.

Sapa