According to the latest retail trade sales report compiled by the Bureau of Market Research at the University of South Africa (Unisa), retailers will face a gloomy 2009.

Although sales growth prospects for the retail sector are anticipated to recover in 2009 from recessionary conditions experienced since 2007, virtually no sales growth is anticipated for 2009.

The report shows that gloomy prospects for retail trade sales in 2009 are based primarily on anticipated high retail inflation rates of around 10 percent.

This, together with an anticipated slowdown in household consumption expenditure will largely inhibit retail sales growth for 2009.

"Sales growth prospects for non-durable product retail sales (e.g. beverages and non-edible goods) seem most promising, though still at low levels. Growth in sales of durable retail goods (e.g. jewellery, audio and household furniture) are also anticipated to remain low at an average of 0.8 percent in 2009," the report says.

In turn, sales of semi-durable retail goods are anticipated to remain static (or even move into negative territory) after recording fairly strong growth of above five percent in preceding years (2004 – 2007).

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