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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