/ 17 May 2023

Retail sales decline 1.6% in March as belts are tightened

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Retail trade sales decreased by 1.6% in March 2023 compared with March 2022, Statistics South Africa (Stats SA) said on Wednesday.

Retail trade sales decreased by 1.6% in March 2023 compared with March 2022, Statistics South Africa (Stats SA) said on Wednesday.  

The largest negative contributors to the decrease were retailers in food, beverages and tobacco in specialised stores, which decreased by 6.6%, and general dealers, which decreased by 1.9%. 

On a month-on-month basis, seasonally adjusted trade sales declined by 0.7% in March 2023 compared with February 2023. 

The March retail trade sales statistical release concludes the results for the first quarter. Seasonally adjusted retail trade sales increased by 0.8%  in the first quarter of 2023 compared with the fourth quarter of 2022. 

Textiles, clothing and pharmaceuticals and medical goods were the key drivers of growth. 

Retailers specialising in textiles and clothing increased sales by 4.4% in the first quarter, while those specialising in pharmaceuticals and medical goods recorded an increase of 1.2%. 

Other retailers that registered positive results include general dealers as well as merchants specialising in food and beverages, said Raquel Floris, Stats SA’s deputy director for distributive trade statistics. 

On the negative side, consumers spent less on household goods and hardware, paint and glass in the first quarter of 2023. 

Nedbank economists expected retail sales to have remained depressed in March, falling by 0.2% year-on-year, after shrinking by 0.5% in February, with consumer spending likely contained by tighter financial conditions and faltering consumer confidence. 

“Also, persistent load-shedding probably disrupted business operations in most industries,” the bank’s economists said.