SA’s retail sector posts 2.3% growth in August 2025
The growth, while moderate, underscores steady consumer activity across several key retail categories despite ongoing economic headwinds.
Hardware and specialty retailers outperform
The largest positive contributors to the year-on-year growth were:
All “other” retailers — up 7.9%, contributing 0.8 percentage points to overall growth.
Hardware, paint and glass retailers — up 8.1%, contributing 0.6 percentage points.
General dealers — up 0.8%, contributing 0.4 percentage points.
The continued strength in hardware and building-related retail reflects sustained consumer and small business investment in home improvement and maintenance — a trend that has remained consistent post-pandemic.
Seasonal dip after July surge
On a month-to-month basis, seasonally adjusted retail trade sales declined by 1.2% in August 2025 compared to July. This follows a 2.3% increase in July and a slight -0.2% decline in June, suggesting a return to more typical trading patterns after strong winter promotions and early back-to-school spending boosted July sales.
Broad-based gains across sectors
Looking at the broader picture, retail trade sales increased by 3.2% in the three months ended August 2025 compared with the same period in 2024. Growth was driven by a diverse mix of retail categories:
All “other” retailers — up 7.7%, contributing 0.8 percentage points.
Textiles, clothing, footwear, and leather goods retailers — up 4.5%, contributing 0.8 percentage points.
Hardware, paint, and glass retailers — up 9.7%, contributing 0.7 percentage points.
General dealers — up 1.6%, contributing 0.7 percentage points.
This broad-based expansion highlights both consumer resilience and diversification within the retail landscape, particularly as clothing and home-improvement segments continue to recover momentum.
Steady underlying growth
When adjusted for seasonal factors, retail trade sales increased by 1.2% in the three months ended August 2025 compared with the previous three months. Positive contributors included:
Textiles, clothing, footwear, and leather goods — up 2.0%, contributing 0.4 percentage points.
Hardware, paint, and glass — up 4.0%, contributing 0.3 percentage points.
All “other” retailers — up 2.6%, contributing 0.3 percentage points.
General dealers — up 0.6%, contributing 0.3 percentage points.
The only negative performer was specialised food, beverages, and tobacco stores, which declined 2.1%, subtracting 0.2 percentage points from overall growth.
Retail momentum faces mixed signals
While overall retail trade growth remains positive, the slowdown in monthly figures suggests consumers are still navigating tight financial conditions and elevated living costs. However, the sustained growth across hardware and discretionary retail categories indicates that South Africans are continuing to spend strategically — balancing essentials with value-driven discretionary purchases.
As the sector heads into the crucial final quarter, retailers will be watching how consumer confidence and disposable income evolve ahead of Black Friday and the Festive trading season, which traditionally define year-end retail performance.