South Africa Retail Trade Slows, Misses Forecasts

Retail sales in South Africa rose by 1.6% year-on-year in February 2026, following an upwardly revised 4.4% jump in the prior month and missing analysts' forecasts of a 4.8% surge. This marked the weakest growth in retail activity since September 2024, in part due to a sharp slowdown in sales of textiles, clothing, footwear and leather goods (3.9% vs 9.7% in January) and hardware, paint and glass (0.1% vs 1.9%). Furthermore, lower sales were recorded for food, beverages and tobacco in specialised stores (-5% vs -6.1%) and general dealers (-0.9% vs 2.4%). On a seasonally adjusted monthly basis, retail trade fell by 1%, after a 0.9% increase in the previous month. Retail trade sales rose by 2.8% in the three months ended February 2026 compared with the three months ended February 2025.

Retail sales in South Africa surged by 4.2% year-on-year in January 2026, the most in six months, following a downwardly revised 2.5% increase in the prior month. Figures came in above market forecasts of a 2.5% rise. The largest contributors to the increase were retailers in textiles, clothing, footwear, and leather goods, which rose 9.9% and added 1.6 percentage points; all ‘other’ retailers, up 10.3% and contributing 1.2 points; and general dealers, which increased 1.7%, adding 0.7 points. On a seasonally adjusted monthly basis, retail trade went up 0.9%, after a revised 0.5% fall in the prior month.

Retail sales in South Africa rose by 2.6% year-on-year in December 2025, following an upwardly revised 3.6% surge in the prior month. This marked the slowest growth in retail activity since last August, though overall levels remained modest. The slowdown was particularly evident in sales of pharmaceuticals and medical goods, cosmetics and toiletries (1.4% vs 9.8% in November) and textiles, clothing, footwear and leather goods (0.1% vs 3%). Additionally, spending on food, beverages and tobacco (-5.6% vs 0.2%) declined sharply. Meanwhile, sales growth picked up for household furniture, appliances and equipment (11.5% vs 8.1%). On a seasonally adjusted monthly basis, retail trade shrank by 0.4%, the most in four months, after a 0.6% increase in the previous month. In 2025, retail trade sales increased by 3.7% compared with 2024.