CAPE TOWN Retailers' and leisure operators' expectations of trading through December traditionally the strongest sales period of the year range from cautiously to strongly optimistic.

Consumer spending has been strong all year after a series of interest rate cuts, lower food inflation and the strong rand making imported goods cheaper.

The latest figures from the Retailer Liaison Committee, released on Friday, show that total sales of its members for the 12 months to August rose 14,8% on the same period last year, led by 17,5% growth in sales of clothing and footwear and 14,8% growth in sales of tapes, CDs and DVDs.

Edcon executive manager, investor relations, Tessa Christelis said on Friday the festive season was always a good trading season for the Edcon group and in line with the performance of the business and macro-economic factors it expected an improvement in trading over last year.

Interest rates in December will have been lower for a longer period than they were last year, consumer confidence is higher, there have been good wage increases, and food inflation is lower.

Woolworths director of product Richard Butt said renewed consumer confidence, as lower interest rates fuelled consumer optimism and created greater disposable income, should deliver better sales this year than last year. "We foresee Woolworths customers increasing their purchase levels of clothing, homeware and speciality gift items during the festive season and, in addition to this, we hope to see an uplift in sales of some of our newer and more innovative ranges such as the Conran Africa range which has just been launched."

Shoprite Holdings marketing GM Brian Weyers said the group expected "a very good Christmas". It was targeting December sales growth in nonfood items of 18%-20%.

The biggest purchases are likely to be homewares, home entertainment and outdoor goods, which will benefit the group's chains, OK Furniture, House and Home and Checkers Hyper. Checkers food stores are trading well and positioning themselves for festive season spending.

Sun International MD Peter Bacon said he doubted if this year's holiday season would be better than last year's but forward bookings were "not looking bad".

"It is a mixed bag. At the top end of the market there is downward pressure on occupancies and rates but towards the lower end it has remained quite strong. Across the board, no major increases are anticipated," he said.

He said he could not comment on anticipated gambling revenues during the festive season. The group's casinos are trading well at the moment and it was hoped that would continue.

Spur Corporation MD Pierre van Tonder said the group's restaurants had had a good few months of trading because the man in the street had more disposable income.

Oct 18 2004 07:20:04:000AM Charlotte Mathews Business Day 1st Edition