Follow us on:   

South African retail sales soar by 8.2 per cent y/y in November
January 23, 2018, 11:50 am

Sales only rose by 0.8 per cent y/y in the first half of the year 

File photo: The Mall of Africa in Midrand, near Johannesburg, South Africa [Xinhua]

In another sign of the recovery in the South African economy, real retail sales soared by 8.2 per cent year-on-year (y/y) in November after a revised 3.5 per cent (3.2 per cent) y/y gain in October according to Statistics South Africa (Stats SA).

Real retail sales rose by only 0.8 per cent y/y in the first half of the year, but the y/y growth rate has accelerated since August when sales jumped to a 5.4 per cent y/y increase.

The November surge was double the expected 4.1 per cent y/y increase and the highest y/y increase since June 2012. It shows that the economy is doing far better than economists and ratings agencies expected, although anybody observing the frenzy at some of South Africa’s many shopping malls such as the Mall of Africa would not have been surprised by the blow-out increase.

It seems as if almost every data release since August has exceeded the consensus forecast.

BankservAfrica, Africa’s largest automated payments clearing house, said bank transactions volume on Black Friday was twice the daily average, so economists should not have been caught unaware.

“The sheer size and value of the transactions processed during Black Friday, and the growth experienced on 2016’s figures, reflects the success of this annual shopper’s day,” said Chris Hamilton, CEO of BankservAfrica.

In terms of retail segments, “all other” retailers, which includes online retailers, had the highest y/y increase at 20.8 per cent, followed by retailers in household furniture, appliances and equipment at 14.1 per cent and retailers in textiles, clothing, footwear and leather goods at 12.4 per cent.

The retailers that Stats SA classifies under “all other” retailers include retail trade not in stores, in other words online retailers and which was not even separately classified ten years ago; retailers in reading matter and stationery; retailers in jewellery, watches and clocks; retailers in sport goods and entertainment requisites; retailers in ‘other’ specialised stores such as hobby stores; repair of personal and household goods; and retail trade in second-hand goods in stores.

“All other” retailers in November were the third largest category at 12 per cent after general dealers at 42 per cent and clothing retailers at 19 per cent. “All other” retailers have consistently exceeded the y/y growth rates of the other sectors this year.

Helmo Preuss in Grahamstown, South Africa for The BRICS Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.