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Retail of Furniture, Appliances and White Goods
BY Nina Shand
South Africa
13 June 2017
R 14 400.00 (ZAR)  
estimated $ 1 127.52 (USD) *
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Retail of Furniture, Appliances and White Goods


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. The three main furniture and appliance retailers, JD Group, Shoprite and Lewis, have a combined footprint of more than 2,200 stores in the country and the four main retailers together hold an estimated 56% of the domestic market.


Difficult Economic Conditions


Retailers experienced the weakest growth in seven years during 2016, with trade for household furniture, appliances and equipment showing negative growth. 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 retail sector in the period ahead.


Growth in Online Retailing


Internet-based retail reached 1% of total South African retail sales in 2016 and showed 20% growth, reaching a value of R9bn. This increase has been attributed to the high mobile penetration rate, increasing technological knowledge and the fact that more secure payment options are available. Most retailers have a website with online ordering capabilities and although there are retailers who only retail online, this is still a niche market.


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.


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