Booming SA Inc. consumers (#432)

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We're seeing decent updates from local retailers so far this year, which is odd. Now let's be clear, decent not knock it out the park.

Distell (JSE code: DGH) lost 41 days of sales in the second half of 2020 yet expects HEPS to be + 8.6% - +13.6%. Motus (JSE code: MTH) expect HEPS to be 0% - 5% higher, sent the stock up some 20% in two days.

A few possible reasons;

Lockdown so we have money to spend Working from home saving on transport Social grants increased

36One calculate some R100bn extra from social grants but also people taking money out of pension schemes & retrenchment packages. The risk here is that this is temporary, which is certainly the 36One fear.

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