By Lehlohonolo Lehana.
Retail sales rose 3.9% year on year in February after rising by a 7.0% in January, Statistics South Africa figures showed on Wednesday, though economists cautioned that a 1.3% decline when compared to a month earlier indicated growing pressure on consumers and an uncertain economic environment.
Retail sales, overall, contribute 20% to the economy, with the wholesale and retail sectors, specifically, being estimated to be the fourth-largest contributors to the country’s GDP.
The biggest boosts annually came from textiles, clothing, footwear and leather goods which increased by 15.7%, which contributed 2.3 percentage points to this gain. General dealers gained 3.4%, which added 1.6 percentage points.
The sector is on an upward trend, with the three months to February 2025 having gained 4,4%, driven by the same sectors that pushed the improvement in the second month of the year. Adjusted for seasonality retail trade sales increased by 1.3% in the three months ended February 2025 compared with the previous three months.
Statistics South Africa’s data, at constant 2019 prices that strips out the effects of inflation, shows a consistent improvement following a massive slump during the year.
However, on a seasonally adjusted monthly basis, retail sales declined 1.3% in the second month of 2025, which followed a year-on-year drop of 0.7% in January, while December sales – a major push driver for retailers given the festive season – were flat.