As sentiment towards the South African economy improves following the formation of the government of national unity, some of the major retailers are seeing improved share performance. Lower oil prices, extended periods of uninterrupted power supply and the recent interest rate cut, which heralds a shift in policy, are notable short-term tailwinds for the sector. However, the longer-term prospects for SA retailers may be different. 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.
In this episode of The Allan Gray Podcast, Siphesihle Zwane hosts fellow portfolio managers Jithen Pillay and Kamal Govan to discuss our thinking behind the retail exposure in the Allan Gray funds. They delve into the performance drivers for Spar, Shoprite, Pick n Pay and Woolworths and explore key themes influencing the sector.