THREE retailing groups are rumoured to be selling their substantial property portfolios as the tide of sentiment turns firmly in favour of retailers leasing rather than owning premises.

THE recent unbundling and restructuring of companies in the retail sector has seen a number of retail conglomerates turn to franchising as a way of expanding and consolidating their operations.

Targeting convenience shoppers pays handsomely

RETAIL sales growth showed improved strength last year, despite rising competition for the consumer's rand from cellphones, the lottery, widespread electrification and the surge in oil prices.

There is still no respite for shop-owners. The sluggish growth in retail sales (a proxy for demand for retail space) for the last few months does not bode well for retail rentals in the shorter term.

The after-season half-price sales signs are up and retailers are still anxiously awaiting the rush of buyers – all conspicuously absent in the current retail slump. It is common knowledge that retailers are under pressure.

Hope for retail's future rests on the rickety foundations of the exploding number of spaza shops, tuckshops and other services in the townships,

WHILE everything else in life is getting smaller, shopping malls are bucking the trend.

Smaller stores closer to home now show the most potential

Several factors contribute to the poor performance of the retail sector: