SA consumers are increasingly turning to traditional retail outlets, with spazas, independent superettes and taverns outpacing supermarkets and modern stores in the first half of 2025.
According to NielsenIQ’s (NIQ) latest State of the Retail Nation report, traditional trade sales jumped 14.8% in value and 16.4% in volume compared with the same period last year.
In contrast, modern trade channels including supermarket chains, franchised grocery stores and e-commerce platforms, recorded slower growth of 5.1% in value and 2.1% in units.
NIQ said consumers spent over R324.4bn on fast-moving consumer goods (FMCG) in the first six months of 2025, representing a 7.4% increase in value year on year and a 7.2% rise in units sold.
Beverages, liquor and snacks drive growth
Growth was strong in beverages, liquor, snacks and tobacco, with unit sales in snacking up 12.2% and tobacco soaring nearly 20%.
“Consumers continue to manage costs by buying in bulk, trading down to value options and chasing promotions. Independent traditional retailers performed especially well for the first half of 2025, which is testimony to their flexibility, resilience and understanding of their customers’ needs,” said NIQ SA MD Zak Haeri.
"Slower growth for private labels suggests that major brands are successfully defending market share through price promotions, marketing campaigns and product innovation,” Haeri said.
While private label products remain a staple for cost-conscious shoppers, NIQ said their growth slowed to 7.5% in the first half of 2025, from 8.8% in 2024. Independent brands rebounded strongly with 8.6% growth as major brands defended their market share through promotions and innovation.
“Our data for the first half of the year shows a mixed picture. On the one hand, consumers remain strategic and frugal in their spending, but on the other, we see them making some small discretionary purchases in the FMCG sector," he said.
Clothing and textiles lift retail figures
According to Stats SA, retail trade recorded a real-term increase of 5.6% year on year in July, boosted by a strong 10% rise in textiles, clothing, footwear and leather goods. However, this headline growth was partly shaped by statistical base effects, with July 2024 having seen a steep 3.4% monthly drop.
Investec said despite higher take-home pay, low inflation and interest rate cuts supporting household spending, overall retail confidence remained subdued, particularly among lower- and middle-income consumers.
Pockets of strength persist among higher-income shoppers, and real wages are expected to rise for the second consecutive year, with CPI inflation projected at 3.2% for 2025.
Domestic challenges and global uncertainties, including tariffs, continue to weigh on consumer sentiment.
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