Retail Trade Sales The darling sales of May By Ti Economist, Carey Leighton
Stats SA released the latest retail sales data this week, showing +4.2% YoY growth in May 2025. Positive real growth (i.e. adjusted to exclude inflation, also known as ‘constant prices’) came from six of the seven measured retailer types, with food specialists (retailers like bakeries, butcheries, fruit & veg that sell a specific type of food rather than a general assortment) in the red, declining -1.9%. Retailers in clothing and textiles were the biggest positive contributors, reporting growth of +12.5%. General dealers (selling predominantly food) reported +3.6% growth, while retailers in household goods came in at +4.4%. Retailers in pharmaceuticals, cosmetics and toiletries scraped together only +1.0%, just behind the +1.1% from retailers in hardware. ‘All other’ retailers (including specialists in sport goods, books, stationery, etc.) reported growth of +2.7% YoY.
Comment: The numbers have been complicated over the last few months due to the timing of Easter this year versus last year. Overall, they are reflecting the moderating inflation, especially in the case of food and personal care. Pressure remains on shoppers’ wallets, however, as we wait until the end of July to see if the SARB will cut the interest rate and if it will be enough to get some momentum into retail sales growth.