A local retail survey conducted during November by the Bureau for Economic Research (BER) and sponsored by business advisory firm Ernst & Young indicates that retailers expect sales of food, beverages, household furniture, appliances and electronic equipment - which includes PCs and computer peripherals - to be buoyant over the festive season.
"Christmas is an important time for retailers, as a larger share of their total annual sales occur during the last three months of the year and especially during December," says George Kershoff, senior BER economist. "This is even truer for sales of household furniture, appliances and electronic equipment," he says.
Jaco van der Walt, partner in charge of Retail and Consumer Products at Ernst & Young, explains that the increase in spending on computer equipment over the last month and continuing into the festive season has been influenced by the rand`s continued woes.
"People are making their home computer purchases now, in an effort to beat the price increases they are expecting in the new year as a result of the weaker currency," says Van der Walt.
As the currency continues its freefall, economists are speculating on an interest rate hike, but for the moment consumers are enjoying paying lower rates on their monthly repayments.
Consumers can also expect to have a little more cash in their pockets over the December holidays after government implemented a 21c per litre cut in the fuel price this week.
However, Van der Walt warns retailers that while the next few months will see more boxes moving off shelves, he cannot guarantee how long the trend will last into the new year, but the report indicates things are looking up for the moment.
"In all, this Christmas the growth in total retail sales could be much on par with that of last year or slightly below," says Kershoff.
"This would be a very good performance, as it occurs while the rest of the world is in an economic slump. In addition, the financial performance of many retailers could improve compared to last year. Retailers have been able to bring their current stock levels much more in line with expected demand. Furthermore, respondents indicated that the deterioration in retail business conditions is coming to an end," he concludes.
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