The retail trade sector ended 2024 on a positive note as sales increased 3.1% year on year in December when measured in real terms, according to Stats SA.
The biggest drivers were retailers in textiles, clothing, footwear, and leather goods, which posted a 7.8% increase, contributing 1.8 percentage points to overall growth. General dealers recorded a 2.0% increase, contributing 0.9 percentage points, Stats SA said.
However, seasonally adjusted retail trade sales eased by 0.1% a monthly basis after increases of 1.0% in November and 1.7% in October.
Full-year retail trade sales climbed 2.5% compared to 2023 with five of seven retail categories recording growth. The largest positive contributor was general dealers, which reported 4.6% growth, contributing 2 percentage points to the overall figure, said Stats SA.
On a quarterly basis retail sales rose 5.4% in the three months to end-December compared to the same period in 2023. The biggest contributors were general dealers, which reported 7.8% growth, contributing 3.3 percentage points, and retailers in textiles, clothing, footwear, and leather goods, which grew by 7.7% and contributed 1.5 percentage points.
Seasonally adjusted retail trade sales increased by 2.1% on a quarter-on-quarter basis largely driven by general dealers, which saw a 2.9% increase and contributing 1.3 percentage points to the total figure. Retailers in textiles, clothing, footwear, and leather goods reported sales growth of 4.5%, contributing 0.8 percentage points.
The manufacturing sector, however, faced continued challenges in December with production declining by 1.2% year on year.
Stats SA said the main laggards were basic iron and steel, non-ferrous metals, metal products, and machinery and motor vehicles, parts and accessories. However, food and beverages made the biggest positive contribution with growth of 5.8%.
Seasonally adjusted production declined by 2.4% from November 2024 and by 0.8% in the fourth quarter. For the full year, production fell by 0.4%, mainly due to declines in motor vehicles.
“According to the BER’s retail trade survey for the fourth quarter of 2024, the lift in sentiment “was underpinned by a significant improvement in indices tracking realised business conditions, sales volumes and profitability in the retail sector,” Investec economist Lara Hodes said. “The sector appears to have favourable expectations for the first quarter [of 2025]”.
Consumers have benefited from a lower inflationary environment as well as monetary easing, with further interest rate cuts anticipated, Hodes added.
“Indeed, take-home pay, in real terms tracked higher at R14,887 in December 2024, markedly up by 8.7% on year-ago levels”, according to BankservAfrica.”
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