Africa's top 3 independent retail categories that beat their global peers
Carin Smith - Three independent retail categories in Africa are beating their global peers in terms of average gross monthly revenue - and not by small margins, according to a new report.
Furniture stores come in at 100% more, sporting goods stores at 72% more, and electronics and appliance stores at 32% more.
This is according to the Retail Benchmarks Report for 2018, released by global retail management software company Vend.
Higor Torchia, country manager for Vend in the UK and EMEA (Europe, the Middle East and Africa), told Fin24 on Tuesday that independent retailers are small and medium retail enterprises which do not form part of big retail corporations.
Vend's data shows that globally, the top independent categories in terms of gross monthly revenue are furniture stores; and beer, wine and spirits stores; while beauty and cosmetics stores tend to earn the least, on average.
The report shows that, over the past year, Africa's independent retailers enjoyed sales volumes 25% higher than the global average, according to data from Vend.
Vend’s Retail Benchmarks Report for 2018 compared data from over 13 000 retailers around the world. It reveals that globally, the average independent retail store makes US$22 300 (about R315 768) per month, with a gross margin of 51%.
However, independent retailers in Africa are bucking that trend, with monthly sales volumes 25% higher, and revenue 9% higher than the global average.
Across Africa, monthly sales volumes per store were 36% higher than retailers in North America, and 5% higher than those in the UK.
Wavering loyalty
Vend's data, however, also showed that African retailers have yet to make full use of customer loyalty. The report indicates that about 39% of African independent retailers are missing out on growing sales and repeat business through a loyalty programme.
Torchia told Fin24 that South Africa was seen as a key country for Vend's growth in EMEA.
He attributed the success of independent retailers in South Africa and the rest of Africa to what he called a real entrepreneurial spirit.
At the same time, he said the main challenge for independent retailers in general was to have time to still create a good experience for their customers.
One of his key focus areas in SA would be getting more partnerships to help customers provide a better experience for their customers, he said. – Fin24
Furniture stores come in at 100% more, sporting goods stores at 72% more, and electronics and appliance stores at 32% more.
This is according to the Retail Benchmarks Report for 2018, released by global retail management software company Vend.
Higor Torchia, country manager for Vend in the UK and EMEA (Europe, the Middle East and Africa), told Fin24 on Tuesday that independent retailers are small and medium retail enterprises which do not form part of big retail corporations.
Vend's data shows that globally, the top independent categories in terms of gross monthly revenue are furniture stores; and beer, wine and spirits stores; while beauty and cosmetics stores tend to earn the least, on average.
The report shows that, over the past year, Africa's independent retailers enjoyed sales volumes 25% higher than the global average, according to data from Vend.
Vend’s Retail Benchmarks Report for 2018 compared data from over 13 000 retailers around the world. It reveals that globally, the average independent retail store makes US$22 300 (about R315 768) per month, with a gross margin of 51%.
However, independent retailers in Africa are bucking that trend, with monthly sales volumes 25% higher, and revenue 9% higher than the global average.
Across Africa, monthly sales volumes per store were 36% higher than retailers in North America, and 5% higher than those in the UK.
Wavering loyalty
Vend's data, however, also showed that African retailers have yet to make full use of customer loyalty. The report indicates that about 39% of African independent retailers are missing out on growing sales and repeat business through a loyalty programme.
Torchia told Fin24 that South Africa was seen as a key country for Vend's growth in EMEA.
He attributed the success of independent retailers in South Africa and the rest of Africa to what he called a real entrepreneurial spirit.
At the same time, he said the main challenge for independent retailers in general was to have time to still create a good experience for their customers.
One of his key focus areas in SA would be getting more partnerships to help customers provide a better experience for their customers, he said. – Fin24
Comments
Namibian Sun
No comments have been left on this article