RETAIL
Regional Performance : Western Cape Leads
The Western Cape continues to lead in performance , with a trading density of R46,248 per square meter and a 5 % year-on-year growth . This region also saw the highest rental growth , at 4.8 %, reaching R252.22 per square meter .
Clur remarks : “ The Western Cape remains a key outperformer , benefiting from a mix of strong local demand , high-end tourism , and a robust retail market . Its dominance reinforces the region ’ s importance as a bellwether for South Africa ’ s retail sector .” In contrast , Gauteng and KwaZulu-Natal trailed behind in terms of both trading density and rental growth , highlighting regional disparities .
Emerging Trends : The Role of Smaller Centres and Social Impact Retail
The shift from larger super regionals to smaller centres points to a growing focus on social impact retail — retail spaces that meet the needs of local communities rather than simply catering to broad national or international demand .
Clur notes : “ There ’ s a growing consumer shift toward necessity shopping and localised retail experiences . This is part of a larger global trend focused on wellness — moving from personal wellness to community and financial wellness . Social impact retail is gaining traction as it supports local communities and addresses specific regional economic needs .”
With the festive season approaching , there are questions around consumer spending trends . Last year , December sales significantly outperformed Black Friday , suggesting consumers are becoming more selective in their spending , favouring extended seasonal shopping over single-day sales events .
Looking Ahead : Shifting Retail Dynamics
As the retail landscape continues to evolve , the trend of smaller centres outpacing larger ones signals the importance of adapting to changing consumer behaviours . The focus is shifting toward community-focused , socially responsible retail that not only meets economic needs but also fosters long-term engagement with local populations .
Clur concludes : “ The retail market is undergoing significant transformation . While large centres still command high rental rates , smaller centres are demonstrating greater resilience in terms of growth . This trend is likely to continue as consumers prioritise convenience and value in their shopping experiences .”
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34 REI MAGAZINE DECEMBER 2024 / JANUARY 2025