Retail sales moved into double-digit growth for many companies in the last three months of 2024 as shops benefited from the traditionally stronger festive season trade, and early signs are that this growth has been extended into January.
This is according to the latest batch of financial data from some of the country’s biggest retailing groups. On Monday, for instance, furniture, home appliance, and electronics retailer Lewis Group described sales growth in the final three months of 2024 as “robust,” and its total revenue increased by 13.6% in the nine months to December 2024.
The group said improving consumer confidence, strong marketing campaigns, “strong” Black Friday sales, and strong sales from its other income sources such as interest and insurance had boosted the top line.
Meanwhile, clothing and accessories retailer The Foschini Group (TFG) grew its sales by 8.4% in the third quarter, significantly ahead of the 2% sales contraction in the first half of its financial year, while for the three weeks to January 18, sales in TFG Africa had grown by a much stronger 14.6%.
Over the past six months, improved consumer confidence has been fuelled by lower inflation, lower interest rates, the absence of loadshedding, and greater political certainty after the formation of the Government of National Unity, while Two Pot Pension payouts were also expected to result in lower consumer debt and increased retail spending.
Another large clothing and accessories retail group, Mr Price, also last week said its performance in the first three weeks of January had been “encouraging,” with double-digit sales growth and gross profit margin gains. This followed a 12.8% increase in retail sales in December, alongside double-digit growth from Mr Price Apparel and all its acquired businesses.
Building materials retailer Cashbuild, in an operational update to the end of December, said its revenue for the last three months of 2024 had increased by 6% compared with the same period a year before. This figure was well up on the 3% growth reported in the first quarter, and from the 5% growth reported in the first quarter of the previous financial year.
Clicks Group turnover for the 20 weeks to January 12, 2025, increased by 8.1% (2024: 8%) compared to the corresponding 20 weeks in the previous financial year. Its retail sales, which include Clicks, The Body Shop, and Sorbet stores, increased 8.7%, driven by strong front shop health and pharmacy, higher sales of private label products, and increased promotional sales that were supported by a “record” Black Friday.
These retail sales figures appear much in line with the latest Central Statistic Service data, which showed that retail sales grew by 7.7% in November 2024 compared to the same month the previous year, significantly outpacing a Reuters consensus forecast of 5.5%.
FNB senior economist Siphamandla Mkhwanazi said in a statement: “We expect this momentum to continue into 2025, supported by a recovery in household incomes, as wages accelerate and inflation abates, lower borrowing costs, improved domestic political risk, and consumer sentiment… supporting retail sales growth.”
BUSINESS REPORT