An industry insider has revealed why mobile retailers are vanishing from South African malls.
Disproportionately high rental costs, low profit margins, and changing consumer habits are forcing more mobile retail stores to close their doors throughout malls in South Africa.
The source said that since margins have dropped significantly in mobile retail, landlords’ increasing rental costs over the last 28 years have become entirely unsustainable. “There is no margin on handsets for contracts and upgrades, and any cash sales of mobile devices typically only have 6% to 8% turnover,” they said.
“Store performance is closely monitored. Should a store start trending to become unprofitable, steps are taken to assist in the form of additional marketing funding, rental support and so forth,” O’Sullivan said.
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