South Africa’s retail trade sales increased by 2.3% year-on-year in August 2025, extending the sector’s run of positive growth to 18 consecutive months. Stats SA data, released yesterday, show that sales at constant 2019 prices rose across most categories, although the pace of expansion has cooled since mid-year.

The latest reading compares with a 3.3% rise in August 2024 and follows stronger gains earlier in 2025, when year-on-year growth reached between 4% and 6%.

With consumer spending being equivalent to roughly 60% of GDP analysts say modest real increases in household spending have helped underpin South Africa’s economic growth, even as high borrowing costs and unemployment weigh on disposable income.

The sector’s performance also remains well ahead of the pandemic-era slump, when retail activity contracted sharply before stagnating through to 2022.

Economists, however, warn that retail spending may moderate in the coming months as inflation and weak credit demand continue to restrain consumers.