Boston, MA -- (SBWIRE) -- 05/21/2014 -- Despite high unemployment and inflation both hurting spending at the moment, South Africa's retail sector is expected to grow steadily over the next few years as the country's increasingly sophisticated urban population and expanding black middle class continue to spend on non-essential items such as clothing and furnishings. This will result in a strong rise in household spending across all retail subsectors. We are particularly bullish about the future growth prospects for restaurants & hotel spending, as well as education and personal care. However, we expect housing & utilities expenditure to remain by far the highest throughout our forecast period.

The South Africa Retail Report provides an extensive and comprehensive forecast of various retail indicators including household spending, and headline total spending across each retail subsector, household income and employment forecasts, demographic forecasts, and a detailed breakdown of household and per capita spending across a large number of retail areas including food & drink, healthcare and insurance, consumer electronics, toys, pets, gardens, household goods, and a number of other subsectors.

View Full Report Details and Table of Contents

The South African retail market is less developed than those of some other regional peers, with spaza outlets, which sell household goods from residential premises, still popular. However, in the mass grocery retail (MGR) sector, positive growth is being achieved through franchising and through the purchase by major chains of smaller independents operating in former homelands and rural towns. Shopping centres, meanwhile, continue to spring up, attracting both regional and global retailers.

We forecast that the average net household income will be around US$11,244 in 2014, with more than 41% of all households in the lowest income bracket of $5,000+. However, household income is forecast to grow to US$21,638 by 2018, when a projected 42.0% of households will be in the middle-income bracket of US $10,000+, up from less than 26% in 2014. This represents the key demographic for increased household spending on luxury items beyond necessities such as food, utilities and transport, and will result in a corresponding increase in household spending on health, communications and personal care.

However, we expect relatively weak real GDP growth in South Africa over the medium term, forecasting economic expansion of 2.5% in 2014 and 3.1% in 2015. Our view is predicated on a slowdown in consumer spending, troubles in the gold mining sector and tepid investor sentiment.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Retailing research reports at Fast Market Research

You may also be interested in these related reports:

- The Future of Retailing in South Africa to 2017
- Food and Grocery Retailing in South Africa: Databook to 2017
- Electrical and Electronics Retailing in South Africa: Databook to 2017
- Consumer Attitudes and Online Retail Dynamics in South Africa, 2013
- Apparel, Accessories, Luggage and Leather Goods Retailing in South Africa: Databook to 2017
- Home and Garden Products Retailing in South Africa: Databook to 2017
- Books, News and Stationery Retailing in South Africa: Databook to 2017
- Retail Buildings Construction in South Africa to 2017: Market Databook
- Sports and Leisure Equipment Retailing in South Africa: Databook to 2017
- Furniture and Floor Coverings Retailing in South Africa: Databook to 2017