Over the last year, South Africa’s independent retailers enjoyed sales volumes 25% higher than the global average.
This is according to data from retail management software provider Vend’s Retail Benchmark Report for 2018. The study, which compares data from more than 13 000 retailers using Vend around the world, reveals that globally the average independent retail store makes $22 300 per month, with a gross margin of 51%.
However, independent retailers in South Africa are bucking that trend, with monthly sales volumes 25% higher, and revenue 9% higher than the global average.
Across South Africa, monthly sales volumes per store were 36% higher than retailers in North America and 5% higher than those in the UK.
Worldwide, Vend’s data showed that furniture stores, and beer, wine and spirits stores had the highest revenues, while beauty and cosmetics stores tend to earn the least on average.
In South Africa, the top three verticals with the highest gross monthly revenue compared to the average for African retailers are:
* Furniture stores – 100% more gross revenue;
* Sporting goods stores – 72% more gross revenue; and
* Electronics and appliances – 32% more gross revenue.
Vend’s data also showed that South African retailers have yet to make full use of customer loyalty, with 61% of retail stores having loyalty enabled in their Vend POS system.
South Africa’s average monthly revenue was also up on other major markets – 9% higher than the global average and 23% higher than the UK.