Apparel retailers in South Africa like Mr Price, Edcon and TFG are facing falling sales. Shoppers are reluctant to spend in an economy fraught with uncertainty. Mr Price had a fall of 10.4 per cent in diluted headline earnings per share in the year to April 2017. Retail sales eased 0.5 per cent while comparable store sales fell 3.6 per cent.

Mr Price’s share price has decreased 21.04 per cent over the past year but is up 3.31 per cent so far in 2017. For the year to end March 2017, turnover growth for TFG Africa was eight per cent with a comparable sales growth of 2.8 per cent. In the last quarter, TFG Africa’s like-for-like sales were 0.2 per cent.

In the past year, TFG’s share price has shed 5.38 per cent and has declined 11.06 per cent in the year to date. For the 52 weeks to March, Edcon group sales decreased 6.7 per cent while adjusted earnings before interest, tax, depreciation and amortisation fell 45 per cent. Edcon is South Africa’s largest nonfood retailer.

Retailers’ revenues are likely to come under more pressure due to low consumer confidence and economic factors. South African consumers are unlikely to see a cyclical recovery in 2017 and even if this does materialise, it’s unlikely to be of the magnitude required to offset the structural headwinds facing the sector.