TV Sales and Home cash sales to increase, as people avert Inflation risk

TV Sales and Home cash sales to increase, as people avert Inflation risk

- in News, Risk Management, RM Function
603
0

Although the record inflation of 2008 is history, inflation risk is still a common worry for many Zimbabweans. Prices of basic commodities are increasing by the day, and the surrogate currency (bond notes) and electronic money are quickly losing value.

By Donald Chidoori

The fear of losing investments in liquid assets just like what happened in 2008 when the country reached record breaking inflation rates -and people lost their investments in pension funds, life policies and savings accounts -, has forced more and more people to invest in fixed assets to protect themselves against inflation risk.

IH securities anticipates that cash sales at TV Sales and Home  will continue trending upwards in anticipation of the 2008 inflationary environment.

The loss of value of the bond notes and electronic money which is being traded at 20% and 30% to the US dollar on the black market respectively has resulted in consumers acquiring furniture to preserve value.

Consumers are buying assets like houses and furniture that have pricing power, to survive the expected bouts of high inflation without getting hurt too badly.

“At TV Sales and Home, cash sales are expected to continue trending upwards in anticipation of the inflationary environment which has resulted in consumers acquiring furniture to preserve value,” IH securities said .

As the threat of hyperinflation in increasingly becoming a reality more and more people are increasingly buying assets that would provide them with a potential anchor against inflation.

During Q1 2016, turnover at TV Sales and Home was 30% up as compared to the same period in 2015 and the retailer also registered significant growth in October and November 2016.

In the half-year period to December 31, 2016, TV Sales & Home achieved a 54 percent growth in units sold resulting in 33 percent growth in revenue, largely spurred by growth in cash sales. IH Securities expects the shop to maintain this growth trajectory in the year going forward.

TV Sales and Home is part of  Axia Corporation Limited, it has 38 shops and its turnover is around 25 to 30 percent of the group revenue.

Axia Corporation Limited operates within the specialty retail and distribution sector. It has three operating business units, namely TV Sales & Home (TVSH), Transerv and Distribution Group Africa (DGA).


In an article to be published on 10 November we are going to focus on ways to Help you manage Inflation Risk.

(Visited 208 times, 1 visits today)

Facebook Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

How to Insure your cash

In business, handling money either in transit, cash