RETAILERS’ INCOME UP BY 1.91%

MBABANE – The retail outlets’ total income marginally increased by 1.91 per cent quarter-on-quarter and by 13.78 per cent year-on-year to E503 million.

The quarterly increase was mainly from the significant recovery of bad debt. However, on a yearly basis, the increase in total income was as a result of a 6.85 per cent growth in credit extension. Total operating expenses exceeded total income during the quarter, and this resulted in a loss of E17.66 million for the sector.

Market share in terms of assets held indicates that OK Bazaars continued to dominate the market in terms of assets held, which contributed 47.27 per cent of the market share followed by Lewis with 26.12 per cent market share and then Truworths with 10.27 per cent and the rest are Mr Price, JD Group, Foschini and Ackermans with 4.53, 2.16, 9.46 and 0.19 per cent, respectively.

When compared to Q2 2022, OK Bazaars lost 3.99 per cent and Foschini gained 2.85 per cent. The other retail outlets remained relatively the same in terms of assets. As of June 30, 2023, retail outlets’ total assets were valued at E1.30 billion, which was a 0.53 per cent increase quarterly and 5.41 per cent yearly. The increase in assets was realised despite the significant increase in the debtors’ provision.

This significant increase could be an indicator that the retail outlets have been experiencing an increase in credit defaults, as customers were affected by the heightened inflationary conditions and may have been struggling to pay their loans.

On liabilities side, the sector experienced an increase of 43.35 per cent on year-on-year and 13.25 per cent on quarter-on-quarter to E506.77 million. The increase mainly emanated from the increase in payables and financial liabilities, however, the equity position decreased by 9.68 per cent because of the decline in retained income.

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