Saneliswe Shamase
2 minute read
28 May 2009

Recession starts to bite

Saneliswe Shamase

LOCAL businesses have had to adopt stringent measures in an effort to stay afloat in the recession....

LOCAL businesses have had to adopt stringent measures in an effort to stay afloat in the recession.

Forsyth Jewellers manager Deano Craig says the recession has had a particularly adverse effect on trade.

“These days we make a maximum of R40 a day and this is very bad,” he said.

Craig says they have already had to close down one of their branches due to a major drop in sales and some of his staff have had to find other jobs.

He says the store has been forced to cut prices by up to 50% and to increase its discounts in an attempt to entice consumers.

“We’re no longer buying stock because we’re just trying to sell what we already have.

“I just hope that this branch won’t have to close down either,” he said.

ABC Transport owner Abdull Essa says the recession is a vicious cycle that has affected everyone. Although he has yet to lay off staff, Essa said his firm has experienced a great decrease in turnover.

In an effort to keep his business afloat, Essa says it has had to drop its prices, but this has not resulted in more customers.

“Somehow you just have to keep trying and we’re basically making more phone calls to source more clients. We don’t have any contingency as yet,” he said.

Ali Choudry of Ali’s Photo Studio and Video Filming says he has already had to lay off some staff because he simply cannot afford to pay extra salaries.

He says the people presently on the payroll have had to work additional hours so that the business can continue to be viable.

Anthony Frost, who manages Cash Crusaders, says he has noticed a major decline in consumer spending, especially on luxury items.

“There has also been a big drop in those seeking credit with us,” Frost added.