ADELE SHEVEL

Both groups warned that tough trading conditions were expected to continue.

“These are quite poor results,” said Chris Gilmour, analyst at Absa Investments, who added that the trend was worrying. “We haven’t as yet seen any meaningful turnaround in consumer spending as a direct result of lower interest rates.”

Old Mutual Investment Group retail analyst Jeanine van Zyl said it was evident that consumers had not started spending.

Under the circumstances, it is unlikely that spending will accelerate by Christmas.

Like-for-like sales at Foschini for the six months ended September were up 1.2%, while Truworths International, with market capitalisation close to R19-billion, said that for the 18 weeks to November 1 comparable sales were up 2%. Sales were up 10%, inclusive of additional trading space.

Foschini, with market cap of R13.7-billion and stores that include Markhams, @home and American Swiss, continues to pursue an aggressive store roll-out.

Other indicators of tough times are found in debtors’ books.

The debtors’ book at Truworths increased 11% to R2.6-billion, indicating that either the appetite is returning for credit sales or consumers continue to rely on credit because they have limited cash.

A trading update released this week by furniture retailer JD Group shows bad debts are not coming off at the rate that was anticipated a few months ago.

Debtor costs are expected to be between 20% and 25% higher than reported for the previous corresponding period, when the group releases results later this month.

One business that continues to defy market trends is Mr Price, which releases interim results next week.

The analyst consensus from I-Net is that headline earnings a share will be 281c for the value-fashion retailer.

Gilmour said the recovery would probably be more prolonged than expected and “not nearly as rapid as we’ve become accustomed to”.

Retail sales contracted a worse-than-expected 7% in August from a year ago.