South Africa’s retailers enjoyed a strong July, with sales climbing 2.1% month-on-month after a 0.5% rise in June, according to Nedbank’s weekly economic monitor. The improvement lifted annual growth to 5.6% year-on-year, marking one of the most robust readings this year and underscoring renewed consumer momentum.

The gains were broad-based, with only food, beverages, tobacco, and pharmaceuticals lagging. Standout growth came from discretionary categories, where textiles, clothing, footwear, and leather goods jumped 10% year-on-year. Hardware, paint, and glass sales rose an even stronger 13.9%, while the “all other retailers” grouping surged 11.9%. Together, these three categories added 3.9 percentage points to the headline figure, reflecting both resilient consumer demand and targeted household spending on lifestyle and home improvement.

Cumulative sales for the year-to-date are up 4.3%, evidence of a sector pulling ahead despite a sluggish broader economy. Nedbank attributes the momentum to several reinforcing trends. Real incomes are rising as wage growth edges above inflation, while inflation itself remains subdued compared with the recent peaks. Lower debt service costs, relative to last year’s cycle of rate hikes, are freeing disposable income, while ongoing withdrawals from contractual savings are providing an additional source of consumer liquidity.

The monitor suggests that these tailwinds are likely to sustain retail strength into the second half of the year. While risks remain from load shedding disruptions and fragile business confidence, household consumption is showing clear signs of resilience. For now, retail remains one of the few bright spots in South Africa’s domestic economy, buoyed by a mix of lower inflation pressure and pent-up consumer demand.