RETAIL GOLD RUSH FOR SOUTH AFRICA

Not content with having attracted big brand names such as Superdry,G-Star and Steve Madden (within the last year i must add), the Spanish retailer Zara has now launched in South Africa. With the rise of the middle class population and increased purchasing power, spending on clothing and footwear totalled £6.6 billion last year making South Africa an optional choice for international retailers affected by the downturn in spending by consumers tightening their purse strings. 

Because South Africa has the infrastructure available to attract and accommodate these big brand names, retail growth can only be set to increase. Thomas Pink, under LVMH Louis Vuitton Moet Hennessy, recently opened their doors in June with Topshop due to open their doors in the next few months. 

So what is the sudden interest in Sub-Saharan Africa? 

The economy in this region has grown 5.2% a year over the past five years according to the International Monetary Fund, affording consumers with disposable incomes to spend on non-essentials. The expansion potential into other parts of Sub-Saharan Africa is also huge with South African domestic retailers already looking at expansion plans into countries such as Angola and Nigeria. Certainly the economic crisis in Europe has slowed down sales for international retailers so expansion overseas is on their radar and with the 'S' at the end of BRICS pertaining to South Africa, it is unquestionably a country retailers are nurturing . 

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