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.



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