SA retail trade sales started 2022 on a positive note recording an annual increase well above market estimates, Stats SA said on Wednesday.
This was the fifth straight month of growth in retail activity and at the fastest pace since last June.
Annual retail trade sales increased by 7.7% in January compared with the same month in 2021, up from an upwardly revised 3.2% rise in the previous month and above market estimates of a 4.9% gain.
This year-on-year rise was largely driven by retailers in food and beverages as well as retailers specialising in clothing and textiles.
Sales in food and beverages jumped a significant 70.9%, contributing 3,5 percentage points while textiles, clothing, footwear and leather goods recorded growth of 17.4% and contributed 3.0 percentage points.
Other retailers that registered positive year on year gains in January were general dealers, retailers in household goods and retailers classified in the miscellaneous category referred to as all other retailers. This category includes online stores and stores specialising in jewellery, stationery and sports goods.
Not all retailers posted positive results in January.
The hardware, paint and glass, as well as the pharmaceuticals, medical goods and cosmetics categories both registered an annual decline in sales.
Data shows that the hardware, paint retail trade sales category fell 7.3% year on year, contributing negative growth of 0.6 percentage point.
On a monthly basis, retail trade increased 1.5% in January, after an upwardly revised 1.7% rise in December and 1.7% in November.
FNB economist Thando Sithole said less restrictive lockdown measures at the time — December 2021 — increased consumer mobility and also improved credit uptake.
Sithole said the extension of the social relief grants, and the relatively strong recovery of disposable income all supported shopping activity in November and December.
For three months annual comparison movement (November 2021, December 2021 and January 2022 compared to November 2020, December 2020 and January 2021), retail trade sales increased 4.2% in the three months ended January 2022 compared with the same period in 2021.
The main contributors over the three months (annual comparison) are textiles, clothing, footwear and leather goods retailers, rising 14.6% and contributing 2.7 percentage points to growth, as well as retailers in food, beverages and tobacco in specialised stores, which rose 15.1% and contributed one percentage point1.0% of a percentage point to growth.
In the three months ended January 2022 – that is November 2021, December 2021 and January 2022 – Stats SA said retail trade sales increased by 4,3% compared with the previous three months.
Sithole said even though overall retail trade sales showed positive growth for the period under review, FNB was concerned about the intensifying consumer headwinds that should weigh on longer term shopping activity. These include higher living costs, still depressed consumer sentiment, a stagnant labour market and the less supportive interest-rate environment,” he said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.