Interest rates start to hit…

7 November, 2006 at 10:59 am | Posted in Companies | Leave a comment

The JD Group and Ellerine Holdings, the country’s two biggest furniture and appliance retailers, yesterday both reported slowing sales growth in the second half of their financial years.
The JD Group, with revenue of R11.94 billion, and Ellerine, with sales of R7.58 billion, both said they expected this trend to continue after record levels of consumer debt and rising interest rates since May.

For the past four years the country has experienced its greatest retail boom, with relatively low interest rates and growing employment driving sales and profits.

The country has a history of extremes in interest rate cycles, with retailers moving from high levels of growth to very poor trading conditions.

(BusRep)

Advertisements

Leave a Comment »

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.
Entries and comments feeds.

%d bloggers like this: