SAPOA Retail Trends Report

Key research findings:

  • Retail trading performance as measured by the IPD Trading Density Index has been holding its ground through 2016, notwithstanding the challenging retail trading environment (Figure 1). The index quantifies sales performance as well as other key retail performance metrics across 24 merchandise categories in more than 100 retail centres, covering in excess of 4 million square meters.
  • Trading density (sales per square meter; annualized), increased by 5.5% year on year (y/y) in current price terms for the quarter ending December 2016 – up from a revised 5.4% y/y recorded for the quarter prior. The 5.4% increase in trading density was a function of 4.9% sales growth and a trading density area decline of -0.7%.
  • The 4.9% year-on-year sales growth is significantly lower than StatsSA’s retail sales growth of 8.4% y/y for the year ending December, implying that mall-based retailers under performed the larger retail market for the period. In saying that. it must be taken into account that the ‘average’ mall is quite diversified in terms of its exposure to the different merchandise categories whilst the StatsSA number is heavily weighted towards general dealers and retailers of textiles, clothing, leather and footwear.

Read more here: SAPOA Retail Trends Report March 2017