The African National Congress is starting its “dispute resolution process” in a bid to address the a.
The growth rate at Woolworths stores has slowed significantly since the implementation of the new National Credit Act in June, the retailer said yesterday.
The company said: "In South Africa, higher interest rates and increasing food prices will reduce consumer spending and expectations are that the growth in retail sales will be significantly lower than [in] the past few years."
Sales grew by 15,9percent for the 21 weeks to November 18, when compared with the same period last year.
Woolworths reported that its financial services division grew the combined book by about 16,5percent compared with the same period last year, but said tthe increase in interest rates and the act has dampened consumer demand.
Net bad debts have deteriorated since the start of the financial year.
Retail, clothing and general merchandise sales increased by 7,3percent, and comparable store sales growth was 4,8percent with an average inflation rate of 8,9percent over the period.
Food sales climbed 19,7percent in total and by 11,1percent in comparable stores with an average inflation rate of 12,1percent over the period. - I-Net Bridge