Retail sales surge 5.6%, easing pressure on consumer outlook

SOUTH Africa’s retail sales climbed by 5.6% year-on-year in July 2025, the fastest pace in three months, Statistics South Africa (Stats SA) reported on Wednesday.

- SIPHELELE DLUDLA

The rebound follows a modest 1.7% increase in June and reflects stronger spending across most categories.

Stats SA's deputy director for distributive trade statistics, Raquel Floris, said five of the seven retail trade groups registered gains.

"Textiles and clothing increased by 10.0% and general dealers by 3.3% year-on-year. Together, both retail groups pushed overall growth up by 3.1 percentage points," Floris said.

"Retailers in food and beverages and pharmaceuticals and medical goods registered a weaker month, both recording a year-on-year decline in sales."

Food and nonalcoholic beverages inflation recorded 5.2% year-on-year, down from 5.7% previously. Monthly deflation of 0.1% reflected meat and nonalcoholic beverages inflation that was mitigated by cereals and vegetables deflation.

General dealers saw the largest statistical base effect on a -10.9% contraction in July 2024, without which it would have contracted by -8.0%, detracting from instead of adding 1.4% to the overall outcome.

On a monthly basis, seasonally adjusted retail trade sales rose by 2.1% in July, marking the strongest increase since December 2023, following a revised 0.1% contraction in June and a 0.4% fall in May.