Virgin Megastore, McDonalds, TGI Friday, Laura Ashley and Benetton head a list of high street names looking to open their first stores in South Africa.
Speaking at a MAPIC seminar, Ian Watt, assistant general manager of South African pension fund Old Mutual, said improving economic indicators were encouraging retailers to search for space in Cape Town and Johannesburg.
“There is a perceived risk in coming to South Africa but a number of exensions are being built at major shopping centres and therein lies the opportunity,” he added.
South Africa’s annual GDP growth stands at 3.3% while inflation is running at 7.2%, down from 15% four years ago. About 40% of the population is under 15, suggesting a rapid upswing in purchasing power over the next 20 years.
EGi News (MAPIC) 17/11/96
