CHANGE IN FESTIVE SPENDING PATTERNS

MBABANE – The fiscal crisis that has been experienced in the country in the past two years has resulted in minimal disposable income.

Retail outlets just before Christmas Day were complaining that their sales were not as high as anticipated and also when compared to the previous years. Unlike yesteryears when customers used to engage in impulsive buying on food and clothing for Christmas, they shifted their spending pattern to focus on essentials for the upcoming years.

During a visit to town on Christmas Eve, this publication gathered that buyers were spending more on school uniforms and stationery.  A visit to Pep Stores saw children’s school uniforms flying off the shelves.
Nothando Shiba, a customer, who was seen busy assessing the right sizes for her child’s uniform, said she wanted to prioritise the most important things before Christmas.

“I am a parent and I know the temptation of buying trivial things during the festive season. When it’s over, reality kicks in and now you find that you don’t have money for your children’s uniform,” the doting mother said.

The mother added that she was avoiding going to money lenders (shylocks) in January, who would then charge interest, when schools opened.
In the same breath, Phumzile Khumalo expressed that she was avoiding the chaotic rush and long queues next month.

“I am also taking advantage of getting what I want while the stock is plenty. I have realised that late shoppers have to wait to be served and stand a chance of not getting items,” she said.
Another couple seen purchasing school uniform apparel said they wanted to get uniform shopping out of the way.

thrilled

Sifisile Dlamini, a mother who was with her six-year-old son highlighted that he would be starting Grade I and was thrilled about trying on his uniform.
She mentioned that she was relieved that she had finished uniform shopping and was off to buy stationery before focusing on Christmas festivities.
A representative of Pep Stores management reiterated that indeed the times had changed.

“EmaSwati have learnt and it is really exhilarating. Contrary to the past when they used to buy more clothes, they have changed their spending pattern and it is really exciting,” she said.
She mentioned that the store had displayed various fashionable clothes for its clients but instead they (customers) were the ones who inquired and requested for school uniform.

She stated that the retailer had 23 stores all over Eswatini and was impressed that the uniform department was generating the most sales this festive.
The store’s representative said items which were flying off the shelves were; grey and khakhi trousers for boys, socks, school shoes and shirts.
Meanwhile, one of the prominent retailers which will not be mentioned because permission for interviews with local representatives was not granted from its headquarters in South Africa, witnessed shoppers taking advantage of stationery instead of food.

Power

To this, an economist said the buying power of consumers had been minimal due to strained disposable income. The economist said despite that the country’s economy had reflected a six per cent growth in the first half of the year, it was low base and it was short lived.
The economics scholar said: “The disposable income did not grow as in this instance the economy was strained and the public sector did not receive much in terms of increments and or cost-of-living adjustment (CoLA).”

The civil service employs over 44 000 people.
Given the ratio of one person supports seven people, the economist said it affected the spending pattern of many as the CoLA has been strained for three years, which in turn depleted the purchasing power.

Furthermore, the economist said this reflected that the economy was not performing well and therefore not creating enough jobs to which also affected the buying power as lesser people were spending.
profits
“This also means that companies were not making profits which then translate to minimal offers of the 13th cheque.”
With this, he said there was also the challenge that taxes had been increased (value-added tax by 1 per cent and the introduction of the fuel levy) and an addition to this was the increment of prices over the years while CoLA was not awarded to the public sector.
Worth noting is that 55 companies closed shop due to arrears not settled by government in the past two years leading to over 1 000 people joining the unemployed.
This is according to information being computed by the Federation of Swazi Business Community (FESBC). An impeccable source within the upper echelons of the organisation said businesses had closed since the beginning of the year due to failure to service debts and also pay tax.
Also, job growth was unstable in the past three months as 842 workers were retrenched. The economy lost some momentum in recent months with government failing to settle arrears with suppliers which saw many go under and or minimise their personnel.
economy
While this happened, the Ministry of Labour and Social Security approved the aforementioned figure from various sectors within the economy.
The hard hit industries that had to let go of many employees were the building and construction, funeral undertakers, retail, hairdressing, wholesale and distributive trades.
Also, the road transportation and security services had to let go some of its human resource.  This is captured in the Ministry of Labour and Social Security Second Quarter Performance Report for the 2019/20 Financial Year.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: