ALLAN GRAY: Is a retail revival on the cards for SA giants?

The past decade has been a challenging one for domestic South African businesses. From slowing economic growth made worse by COVID-19 lockdowns, infrastructure challenges and high food inflation in the latter years. However, since the formation of the government of national unity and extended periods of uninterrupted power supply, sentiment on the country, and major local retailers, has shifted more positively. In a post-pandemic world where time-starved consumers face surging living costs, the battle for market share requires a balance between pricing, quality and convenience.

Kamal Govan, portfolio manager at Allan Gray, joins Kaya Biz to discuss some of the key themes shaping the retail sector in South Africa presently and shed light on our thinking behind the retail exposure in our funds.