Retail Shares The Big Red One for a win and a place in the eighth
2014 was not a notably brilliant year for retailers. With consumer slowdown, slowing job creation, industrial action, the debt burden and inflation, few retailers reported fantastic performances, and most sounded a cautionary note for the months and years ahead. And indeed, here in the one fiver, despite the artificially reduced price of fuel that will put a welcome R20billion into the pockets of consumers, no one’s expecting fireworks in this sector we call home anytime soon. But try telling that to the punters, particularly the foreign ones! Investors continue to inject their readies into our retail shares in the hopes of big payola down the line, and this has resulted in some pretty robust evaluations. Last year, Woolies’ shares headed north to the tune of 48.2%, Shoprite by 26.1% and Pick n Pay, in the midst of an as yet unproven turnaround, by 27.7%.
Comment: It just shows to go, eh.