Retailers were left counting the cost after sporadic incidents of protests in KwaZulu-Natal and Gauteng resulted in widespread looting and disrupted the supply chain, raising concerns of a potential shortage of basic consumer goods in SA.
The loss to retailers, including the cost of damage to property and delivery vehicles, runs into millions of rand, the Consumer Goods Council of SA (CGCSA), which represents retailers, said in a statement on Monday.
“We are dealing with a major food security threat here. Our major priority right now is to protect food distribution centres, failing which we will have serious food shortages,” said Abbie Nelson, head of crime risk initiative at CGCSA. He said about 471 retailers have been looted in mainly Gauteng and KwaZulu-Natal. CGCSA represents 9,000 members across the retail chain.
Looters targeted retail shops, including liquor stores, and have stolen merchandise that includes food, electrical products and clothing in a protest triggered by the arrest of former president Jacob Zuma last week for failing to obey the Constitutional Court order requiring him to appear before the Zondo commission of inquiry to answer to allegations of state capture.
The news will come as a further blow to distributors of liquor, after President Cyril Ramaphosa maintained the ban on the sale of alcohol for another 14 days, robbing the sector of the much-needed revenue.
However, investors took these setbacks in their stride, with grocery and clothing retailers marginally down in afternoon trade on the JSE on Monday. Shares of Shoprite, Africa’s largest grocery retailer by revenue, was up 1.12% to R159.64. Spar gained 0.13% to R182.76 while Pick n Pay was down 0.13% at R52.60. Woolworths shed 1.58% to R54.24.
Over the weekend the protesters targeted the N3 highway, a strategic trade route between Gauteng and KwaZulu-Natal, by burning dozens of freight trucks.
CGCSA said the disruption to and closure of key transport routes can potentially affect the supply chain of retail products which could in turn create shortages of basic commodities throughout the country.
Spar warned of potential job losses, which will drive up the already record high unemployment rate (32%) and derail the recovery of the sector from the ravages of Covid-19.
“We are aware of several of our stores that are affected by recent incidents in towns, now experiencing unrest. We are monitoring the situation which is unfortunately changing every hour. Therefore at this stage, we are not able to comment on individual sites. We are working closely with all store owners affected by the unrest and offering support to all relevant authorities,” Spar said.
Shoprite said several of its stores in KwaZulu-Natal and Gauteng were unable to trade due to the “mayhem and extensive damage” caused over the past 24 hours.
Massmart said it was assessing the impact after looters attacked seven of its stores, which included Game, Makro, Cash & Carry and Cambridge Food. Six of the affected stores are located in KwaZulu-Natal and the seventh in Gauteng.
“Massmart has, in an abundance of caution, closed a number of stores, primarily in KwaZulu-Natal that we consider to be vulnerable to protest action,” the company said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.