Retail sector shows resilience amid low inflation and increased consumer spending

THE South African retail landscape appears to be on a positive trajectory, buoyed by significantly low consumer inflation, the availability of disposable income from Two-Pot retirement withdrawals, and a notable decrease in fuel prices.

- SIPHELELE DLUDLA

Data from Statistics South Africa (Stats SA) on Wednesday showed that the retail sector continued to strengthen in May, with sales increasing by 4.2% year-on-year following an upwardly revised 5.2% advance in April.

Raquel Floris, deputy director for distributive trade statistics at Stats SA, said six of the seven retail groups recorded a positive month, largely driven by textiles, clothing, footwear, and leather goods.

"Textiles and clothing and general dealers continued to shine, with textiles and clothing increasing by 12.5% and general dealers by 3.6% year-on-year," Floris said.

"Together, the two groups pushed overall growth higher by 3.7 percentage points. Food and beverages was the only retail group that was weaker in May, shrinking by 1.9% year-on-year."

On a seasonally adjusted monthly basis, retail sales rose by 0.1% in May, after an upwardly revised 1.1% increase in April.

Retail trade sales increased by 3.5% in the three months ended May compared with the three months ended May last year.