Food and Beverages Industry, 2015: http://www.statssa.gov.za/?page_id=1854&PPN=Report-64-20-01&SCH=7083 Report No. 64-11-01 (2015) - Accommodation Industry, 2015 http://www.statssa.gov.za/?page_id=1854&PPN=Report-64-11-01&SCH=7082 Report No. 63-01-02 (2015) - Motor trade Industry, 2015 http://www.statssa.gov.za/?page_id=1854&PPN=Report-63-01-02&SCH=7084 Report No.62-01-02 (2015) - Retail trade Industry, 2015 http://www.statssa.gov.za/?page_id=1854&PPN=Report-62-01-02&SCH=7085 Report No.61-01-01 (2015) - Wholesale trade Industry, 2015 http://www.statssa.gov.za/?page_id=1854&PPN=Report-61-01-01&SCH=7086

1. The South
African trade
industry
An overview
2012 – 2015
Dr Pali Lehohla
Stats SA
26 October 2017

2. Retail
Wholesale
Demographic
dividend
Motor trade
Accommodation
Food &
beverages
Detailed data for five divisions in trade are now available
• Large sample surveys
providing data for 2015
• Detailed statistics on:
• Income
• Commodities sold
• Concentration ratios
• Expenditure
• Profit margins
• Employment
• Capital expenditure
Trade
industry

3. The trade industry is responsible for 15% of SA economic production
Shares of
nominal GDP
2016

4. 14.2%
15.0%
12.0%
12.5%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The trade industry contribution to GDP has grown slightly over the years

5. Income

6. The trade industry generated R3,17 trillion in income during 2015
1.13
1.33
1.49
1.56
2.39
3.17
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2005 2006 2007 2009 2012 2015
Rtrillion
That’s just over R100 000 generated per second!

7. Wholesale
52%
Retail
26%
Motor trade
19%
Food &
beverages
2%
Accommodation
1%
Wholesale trade generated just over half of total income in 2015
Total income
R3,17 trillion
Percentages have been rounded and may not sum to 100% Only includes formal business activities

8. R2,106,025m
(66%)
R392,234m
(12%)
R674,071m
(21%)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Large enterprises Medium enterprises Small and micro enterprises
Rmillion
Large enterprises generated two-thirds of the R3,17 trillion in income
2015

9. Building
material &
hardware
32%
Machinery &
equipment
22%
Food &
beverages
19%
Other
27%
What are the most popular sources of income in each division (2015)?
Wholesale
Food &
beverages
42%
Clothing
16%
Medical &
cosmetics
11%
Other
32%
Retail
New
vehicles
33%
Fuel
29%
Parts
18%
Used
vehicles
17%
Other
4%
Motor*
Food and
snacks
81%
Non-alcoholic
drinks
9%
Wines
5%
Other
5%
Food & beveragesAccommodation
*New and used vehicles includes both retail and wholesale sales

10. Cape Town
14%
Johannesburg
14%
Tshwane
9%
eThekwini
7%
Other districts
51%
49%
Accommodation: almost half of available rooms* are in five cities
Eku-
Rhuleni
4%
*The unit of accommodation available to be charged out to guests; for example, a powered site in a caravan park or a room in a hotel.

11. Motor trade: vehicle sales* – number of units sold in 2012 and 2015
*Only includes retail sales; excludes wholesale sales of vehicles
Total: 412 819 Total: 384 860 Total: 412 964 Total: 378 499

12. Concentration
ratios

13. What do concentration ratios tell us?
If an industry is dominated by
a few large players, then it’s
regarded as monopolistic.
This can hinder competition
and present a barrier to new
entrants into the market

14. Proportion of income earned by the top 10 largest enterprises
Retail and accommodation are dominated by a few large companies
15%
15%
21%
38%
42%
0% 20% 40% 60% 80% 100%
Food & beverages
Wholesale
Motor
Accommodation
Retail

15. The motor trade industry has become less concentrated over time
Proportion of income earned by the top 10 largest enterprises
33%
26% 23% 21%
0%
20%
40%
60%
80%
100%
2006 2009 2012 2015

16. And so has accommodation
Proportion of income earned by the top 10 largest enterprises
55% 50%
44%
38%
0%
20%
40%
60%
80%
100%
2007 2009 2012 2015

17. Concentration in retail trade, however, has increased over time
Proportion of income earned by the top 10 largest enterprises
39% 40% 41% 42%
0%
20%
40%
60%
80%
100%
2005 2009 2012 2015

18. Expenditure

19. A total of R3,09 trillion was spent by the trade industries in 2015
Wholesale
52%
Retail
26%
Motor
19%
Food &
beverages
2%
Accommodation
1%
Total expenditure
R3,09 trillion
Percentages have been rounded and may not sum to 100%

20. What did each division spend money on?
17%
50%
85%
75%
83%
24%
20%
7%
10%
6%
58%
30%
9%
16%
11%
0% 20% 40% 60% 80% 100%
Accommodation
Food & beverages
Motor
Retail
Wholesale
Purchases Employment costs Other expenditure

21. Profit margin

22. The profit margin rose in 2015 to 2,6%
1.8%
1.9% 1.9%
1.6%
2.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
2011 2012 2013 2014 2015
Profitmargin
Profit margin for the entire trade industry
(net loss/profit after tax as a percentage of turnover)

23. Casino income contributed to accommodation’s high profit margin
Profit margin (net loss/profit after tax)
2.0%
2.0%
2.5%
2.6%
2.9%
9.9%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Motor trade
Food and beverages
Wholesale trade
All trades
Retail trade
Accommodation

24. In fact, casinos contribute just over a third of total accommodation income
Accommodation
59%
Casino
facilities
34%
Functions
4%
Other
services
3%
2015

25. Employment
Photo: http://www.mediaclub.co.za, Chris Kirchhoff

26. The trade industry is the third largest employer in the formal business sector
Community
services
27%
Business
services
23%
Trade
22%
Manufacturing
12%
Other
16%
Source: Quarterly Employment Statistics (QES), June 2017 (Table B)

27. The trade industry employed 1,9 million people in 2015
0,3 million
Number of jobs

28. 1
2
Retail – 44% (812 104 people)
3
4
5
Retail is the largest employer in the trade industry (2015)
Wholesale – 26% (490 037 people)
Motor – 15% (270 440 people)
Food & beverages – 9% (174 601 people)
Accommodation – 6% (109 196 people)
1
2
3
4
5
1,9 million
people

29. 28%
34%
56%
57%
59%
47%
72%
66%
44%
43%
41%
53%
0% 20% 40% 60% 80% 100%
Motor
Wholesale
Accommodation
Retail
Food & beverages
All trades
Female Male
Female employees outnumber male employees in three divisions
2015

30. But employees in those three divisions earn the lowest salaries
Average income for all employees
R 174,135
R 126,151
R 84,380
R 87,852
R 47,037
R 202,823
R 146,905
R 93,632 R 91,716
R 60,761
R 0
R 50,000
R 100,000
R 150,000
R 200,000
R 250,000
Wholesale Motor Retail Accommodation Food & beverages
2012
2015

31. Income vs employment (2015)
52%
26%
19%
2% 1%
26%
44%
15%
9%
6%
0%
10%
20%
30%
40%
50%
60%
Wholesale trade Retail trade industry Motor trade industry Food and beverages Accommodation
Income Employment

32. Income vs employment: large enterprises (2015)
70.3% 70.1%
67.0%
61.7%
41.3%
50.6%
66.0%
40.3% 40.0% 39.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Accommodation Retail Wholesale Motor Food & beverages
Income Employment

33. Capital
expenditure

34. Wholesale
39%
Retail
32%
Motor
15%
Food &
beverages
4%
Accommodation
11%
Wholesale spend the most on acquiring new assets (2015)
Total capital
expenditure
R49,9 billion

35. Thank you