Chart of the Week
This week's Cirrus #ChartoftheWeek examines consumer purchasing by month in South African retailers from 2004 to 2023.Textiles, clothing and footwear purchases peak in October/November as retailers aim to reduce their inventory of durable goods and obsolete/out-of-fashion items, often promoting end-of-year discounts, says Cirrus Capital economist Tannan Groenewald.
Precious stones, jewellery and silverware purchases also peak in October/November as engagement rings and other precious gifts are popular in anticipation of Christmas Day, which is the most popular day for proposals.
Both categories experience a drop in December as consumer purchasing prioritises food, beverages and tobacco, as well as travel and leisure activities. Consumers buy 20% more food, beverages and tobacco in December as the festive season boosts food and recreational consumption.
Purchasing volumes are lowest in January across all three categories as consumers adopt more frugal spending habits to compensate for their increased expenses in the previous month.
Fuels and related products purchasing remains relatively stable throughout the year due to their constant need and inelasticity.