Introduction
Sales of household furniture, equipment and appliances grew in 2021 as consumers spent heavily on refurbishing their homes. Sales growth has since slowed and retailers have forecast a tough 2023 as consumers have come under pressure from increasing interest rates, and a slowing economy. Power cuts have driven demand in appliances like gas stoves and cookers, while constraining operations for retailers, many of whom are looking to procure alternative energy sources to ensure trading is not disrupted. Delays at ports and high shipping rates have resulted in many retailers sourcing more furniture from local suppliers, while online sales continue to grow.Opportunities
Demand for second-hand furniture and appliances is likely to increase, driven by constrained consumers Development of platforms for online browsing and ordering. Expansion into other African countries, particularly those with large, rapidly-urbanising populations. Loadshedding is driving demand for certain types of appliances such as gas stoves and energy-saving appliances. Port delays and high shipping rates have encouraged sourcing locally-produced furniture. The increase in credit sales can net more income than cash sales, after interest is factored in.Outlook
Growth in home furniture and appliances sales is expected to slow as consumer spending remains constrained by high inflation, slow economic growth, unemployment and loadshedding. These challenges are compounded by the trading disruption from ongoing power cuts. Some retailers serving the upper-end of the market reported good sales growth in 2022, and are optimistic in the short-term. Several retailers have expanded by launching new retail brands or through acquisitions, which suggests competition could increase in the sector.Report Coverage
This report focuses on the retail of furniture, appliances and white goods in South Africa and includes information on sales, key challenges and opportunities, notable players, developments and influencing factors. There are profiles of 26 companies including the major retail players JD Group, Shoprite and Lewis, second-hand retailers Cash Converters and Cash Crusaders and other notable players such as Tapestry Home Brands, Tafleberg, Weylandts, Teljoy and Takealot.Strengths
Furniture manufacturing industry has government support. Large retail chains with diversified brand portfolios. Strong distribution networks and fast delivery.Threats
Carbon tax, which will include scope 2 emissions from 1 January 2026. Exchange rate depreciation leading to increase in price of goods. Furniture’s share of consumer spending is declining over the long-term. Increasing cost of electricity, raw materials, transport and labour. Loadshedding. Slowing economic growth and high inflation has put consumer spending under pressure. The ailing performance of Transnet’s freight rail and ports. The increasing threat of crime and unrest. The rise in credit sales and the slowing economy could increase the risk of consumers defaulting on payments.Weaknesses
Heavily dependent on economic conditions. Low profit margins and the need for low-cost products.Table of Contents
1. INTRODUCTION4. AFRICA5. INTERNATIONAL8. SWOT ANALYSIS9. OUTLOOK10. INDUSTRY ASSOCIATIONSAPPENDICESAPPENDIX - Summary of Notable PlayersAPPENDIX - SIC Codes for Appliances and White Goods
2. DESCRIPTION OF THE INDUSTRY
3. LOCAL
6. INFLUENCING FACTORS
7. COMPETITIVE ENVIRONMENT
11. REFERENCES
COMPANY PROFILES
Companies Mentioned
- 9 Induland Avenue Lansdowne (Pty) Ltd.
- Botha En Barnard Meubelmakers Cc
- Cash Converters Southern Africa (Pty) Ltd.
- Cash Crusaders Franchising (Pty) Ltd.
- Clicks Group Ltd.
- Dynamic Bedding Retail (Pty) Ltd.
- Fair Discounters (Pty) Ltd.
- Forfive (Pty) Ltd.
- Foschini Retail Group (Pty) Ltd.
- Gumtree South Africa (Pty) Ltd.
- Homechoice (Pty) Ltd.
- Jd Group (Pty) Ltd.
- Lewis Group Ltd.
- Massmart Holdings (Pty) Ltd.
- Mr Price Group Ltd.
- Nictus Ltd.
- Pick N Pay Stores Ltd.
- Shf Living (Pty) Ltd.
- Shoprite Holdings Ltd.
- Tafelberg Furniture Stores (Pty) Ltd.
- Takealot Online (Rf) (Pty) Ltd.
- Tapestry Home Brands (Pty) Ltd.
- Teljoy (Pty) Ltd.
- Trestle South Africa (Pty) Ltd.
- Verimark Holdings (Pty) Ltd.
- Weylandt's Furniture Cape Town (Pty) Ltd
Methodology
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