South African retail sales growth slowed to 1.6% in February

Sales decelerated from January's revised 4.4% figure, with food and beverage retailers recording the sharpest decline.

Annual retail sales growth in South Africa slowed to 1.6% in February from an upwardly revised 4.4% in January, Statistics South Africa reported on Wednesday¹². Further easing is expected in coming months as increased fuel costs drive other prices higher for consumers¹².

Five of seven retail groups recorded stronger sales in February¹². The miscellaneous category, which includes online stores and retailers specializing in jewellery, stationery and sports goods, contributed most significantly to growth, expanding by 9.4% year on year and adding one percentage point to overall retail sales¹². The textiles and clothing category was the second largest positive contributor, rising by 3.9% and contributing 0.6 percentage points¹².

Not all categories performed well. Raquel Floris, deputy director for distributive trade statistics at Statistics South Africa, said general dealers and retailers specializing in food and beverages recorded declines in sales¹². Food and beverages registered the largest decrease, shrinking by 5% year on year¹².

On a month-to-month basis, seasonally adjusted retail trade sales contracted by 1% in February, having risen 0.9% in January following a 0.5% decline in December¹².

Siphamandla Mkhwanazi, a senior economist at FNB, said consumers entered 2026 on a firmer footing, supported by improving purchasing power, stronger balance sheets and lower borrowing and debt-service costs¹². This backdrop contributed to improved consumer sentiment, particularly among higher-income households, he said¹².