Stats SA Reports 2.3% Annual Rise in Retail Sales With Strong Growth in Specialist and Clothing Retailers

The latest retail trade figures from Stats SA indicate that while consumers remain value-conscious amid ongoing economic pressures, spending continues to hold up across key retail categories.

Measured at constant 2019 prices, retail sales recorded a 2.3% annual increase in May, reflecting steady demand despite persistent inflationary pressures and constrained household budgets.

Clothing and specialist retailers lead growth

The strongest growth came from 'other' retailers, which include a range of specialist retail businesses, with sales increasing 6.7%, contributing 0.7 percentage points to overall retail growth.

Retailers selling textiles, clothing, footwear and leather goods also delivered a robust performance, recording 3.7% year-on-year growth, contributing a further 0.7 percentage points to overall sales growth.

Meanwhile, general dealers, which include supermarkets and large retail chains, posted 1.0% growth, contributing 0.4 percentage points to the national increase.

The figures suggest consumers are continuing to prioritise essential purchases while selectively spending on apparel and lifestyle products.

Monthly sales remain stable

On a month-to-month basis, seasonally adjusted retail trade sales edged up by 0.1% in May compared with April 2026.

This follows modest monthly gains of 0.8% in April and 0.1% in March, indicating that retail activity has remained relatively stable over recent months despite a challenging economic environment.

Three-month trend points to continued resilience

Looking at the broader trend, retail trade sales increased 2.0% during the three months ended May 2026 compared with the same period a year earlier.

Again, other retailers were the standout performers, with sales rising 6.2%, contributing 0.7 percentage points to overall growth.

General dealers also continued to underpin the sector's performance, recording 1.2% growth and contributing 0.5 percentage points.

On a seasonally adjusted basis, retail sales increased 0.3% over the latest three-month period compared with the previous three months, with specialist retailers once again providing the largest contribution to growth.

Positive signal for retailers

The latest figures provide another encouraging sign for South Africa's retail industry, which continues to navigate a complex operating environment characterised by cautious consumers, elevated living costs and shifting shopping behaviour.

Retailers have increasingly responded by strengthening value propositions, expanding promotional activity and investing in omnichannel offerings to attract consumers seeking affordability without compromising convenience.

The continued strength of clothing retailers also reflects ongoing consumer demand for fashion, while specialist retailers appear to be benefiting from targeted spending across a range of discretionary categories.

Although economic headwinds remain, May's retail performance suggests the sector is maintaining steady momentum, providing a positive outlook as retailers prepare for the second half of the year.