Store Accounts: Are credit sales the new normal for fashion retailers?
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GUEST – Finance Ghost – Retail Analyst
With several South African retailers having recently released results, it’s become clear that the taps have been opened on credit sales. This says a lot about the resilience of South African consumers, despite all the bad news we are confronted with daily.
South African retail executives might have been naive in previous years about international dealmaking, but they probably aren’t asleep at the wheel when it comes to understanding domestic issues. South Africa’s consumer risks aren’t hidden from sight; they hit you in the face everywhere you go. This is ironically a good thing for investors, as it suggests that retailers would accelerate credit sales only with caution.
With several South African retailers having recently released results, it’s become clear that the taps have been opened on credit sales. This says a lot about the resilience of South African consumers, despite all the bad news we are confronted with daily.
South African retail executives might have been naive in previous years about international dealmaking, but they probably aren’t asleep at the wheel when it comes to understanding domestic issues. South Africa’s consumer risks aren’t hidden from sight; they hit you in the face everywhere you go. This is ironically a good thing for investors, as it suggests that retailers would accelerate credit sales only with caution.