Sefalana margins pressured as household spending slows

Friday, October 11, 2024 | 500 Views |

Ear to the ground: Chauhan says consumers are shying away of luxury items PIC: KENNEDY RAMOKONE

The country’s second-largest retail grocer has noted a dip in its gross margins as households slow down spending in the face of tough economic conditions.

In the latest annual report, the group’s executives noted lower consumer spending, particularly around luxury items, as household incomes continued under pressure

Group Managing Director Chandra Chauhan stated that despite a bounce back in consumer foot traffic at Sefalana’s stores, there was a worrying trend where customers constrict their purchases to staples and shy away from luxurious brands, reflecting limited disposable income.

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