RLC November retail report reveals subdued clothing retail sales
The Retailers' Liaison Committee (RLC) recently released its November retail sales report, giving further evidence of the impact of the dampened economy on Black Friday and November sales.
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The RLC is an association of clothing and homeware retailers, reporting market performance data and market share. Its members include major retailers in South Africa such as Woolworths, Truworths, TFG, Pepkor and Mr Price, as well as international retailers H&M and Cotton On and online retailers Takealot and Superbalist.
In total, 16 retail groups participate, spanning 69 retail brands across South Africa and sub-Saharan Africa. Its industry report tracks several categories within clothing, footwear, accessories and homeware. RLC retail data is provided directly by its retail members, with over 50 sub-categories tracked.
Key insights
Insights that emerged from the RLC report on November clothing and homeware retail sales include:
• Black Friday retail sales were down 38.0%, despite a surge in e-commerce sales. Consumers avoided the crowds at shopping malls, choosing instead to take their purchases online.
• Sales for the month of November were down 10.7%, despite deeper price cuts and longer-running promotions, as consumers continue to tighten their belts.
• Trade was encouraging in the weeks leading up to Black Friday, with November week 1 up 3.0% and week 2 up 5.5% on last year, however, any early excitement was dampened as sales in week 3 were down 6.7% and Black Friday week was down 26.0% on last year.
• Every category traded significantly down on Black Friday, with the weakest performing categories being Kids & Baby (down 47.6%), Men’s Footwear (down 40.2%), Menswear (down 37.1%) and Women’s Outerwear (down 36.8%).
• With consumers continuing to spend more time at home, and spending more money on home-related purchases, Homeware was the only category that performed better than last year for the month of November (up 8.4%).
Disappointment despite deep discounting
Chairman of the RLC, Shane Butlion, says that the subdued economy, job losses and salary cuts continue to severely impact clothing and homeware retail sales, and that despite deeper price cuts and longer-running promotions, Black Friday and November results were far below expectations.
“With consumers looking for great deals and with increased competition for the customer’s share of wallet, retailers started offering discounts far earlier than in previous years and Black Friday quickly became Black November. This was also done to distribute foot traffic over the month in an effort to curb the spread of Covid-19.
"However, despite deeper discounts and longer-running promotions, November retail sales were down 10.7% year-on-year, and Black Friday was very disappointing, 38.0% down year-on-year,” said Butlion.
Delving deeper into the RLC data, Butlion added, "The RLC data shows that every category traded significantly down on Black Friday, with the weakest performing categories being Kids & Baby (down 47.6%), Men’s Footwear (down 40.2%), Menswear (down 37.1%) and Women’s Outerwear (down 36.8%).
"As noted in the RLC’s 2020 Trends Report released in November, consumers continue to spend more time at home, and spend more money on home-related purchases. Homeware was the only category that performed better than last year for the month of November (up 8.4%)."
Butlion said that RLC is actively growing retail membership and providing access to non-retailers to its aggregated data. "Enquiries can be made through our website – www.retailers.org.za,” concluded Butlion.
