Cautious Resilience Amid Macroeconomic Pressure and Evolving Value-Driven Retail Dynamics
Retail in South Africa in 2025 demonstrated resilience and outpaced many global markets, recording current value sales of ZAR1.41 trillion and year-on-year growth of 6%, despite subdued regional growth and ongoing economic pressures. Although real GDP growth remained muted at 1% and consumer confidence was low, easing inflation to 3% and a rising share of consumer spending in GDP to 65% highlighted both ongoing economic strain and a robust appetite for value-led offerings. The market remains attractive for brands that can deliver affordability, innovation, and operational agility, with discounters and supermarkets gaining ground through sharp pricing and private label expansion, while e-commerce surges and informal traders leverage digital tools to reach new customers. Consolidation among leading players such as Shoprite and Pepkor signals intensifying competition, making it critical for brands to invest in digital infrastructure, differentiated product propositions, and omnichannel experiences to capture evolving demand and sustain growth.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in South Africa report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in South Africa?
- Which are the leading retailers in Retail in South Africa?
- How are products distributed in Retail in South Africa?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in South Africa?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in South Africa
Cautious Resilience Amid Macroeconomic Pressure and Evolving Value-Driven Retail Dynamics
Key Data Insights
Cautious Resilience Amid Macroeconomic Pressure and Evolving Value-Driven Retail Dynamics
Discounters and Supermarkets Capture Shoppers through Affordable Pricing
Rapid E-Commerce Growth Is Driven by Convenience, Affordability, and Digital Platform Expansion
Supermarkets Will Expand Reach as Urbanisation Fuels Demand for Convenience
Retail E-Commerce Is Set to Accelerate as Digital Access Widens and Payment Security Improves
Niche Entrants Will Diversify Offerings as Consolidation Limits New Expansion Routes
Shoprite Holdings Consolidates Its Leadership as South Africa’S Retail Market Intensifies
Strategic Consolidation and Premiumisation Concepts Reshape Competition
Informal Retail
Opening Hours for Physical Retail
Seasonality
Christmas
Back to School
Convenience Retailers in South Africa
Key Data Insights
Convenience Retailers Delivers Resilient Growth Driven by Outlet Expansion, Digital Partnerships, and Evolving Consumer Demand
Convenience Retailers Delivers Resilient Growth Driven by Outlet Expansion, Digital Partnerships, and Evolving Consumer Demand
Convenience Retailers Shift toward Experiential Formats as Digital and Physical Innovation Converge
Convenience Retailers Is Set for Sustained Growth Driven by Urbanisation, Lifestyle Shifts, and Forecourt Transformation
Competition Will Intensify through Loyalty Systems and Q-Commerce Growth
Premiumisation and Fintech-Driven Innovation Reshape the Future of Convenience Retailers
Convenience Retailer Consolidates as Forecourt Innovation and Format Diversification Reshape Competition
Supermarkets in South Africa
Key Data Insights
Strong Growth Despite Weak Consumer Confidence and Modest Economic Expansion
Strong Growth Despite Weak Consumer Confidence and Modest Economic Expansion
Artificial Intelligence and Experiential Retail Are Redefining How Supermarkets Compete and Deliver Value
Growth Is Set to Be Driven by Rising Middle-Income Demand, Expanding Competition, and Continued Format Innovation
Supermarkets Will Be Reshaped by Digitalisation, Sustainability, and Intensifying Competition
Supermarkets Is Becoming More Concentrated as Shoprite Holdings Strengthens Its Dominance through Scale, Innovation, and Digital Leadership
Hypermarkets in South Africa
Key Data Insights
Walmart’S Entry Accelerates Competitive Intensity through Physical Expansion and Omnichannel Scaling
Walmart’S Entry Accelerates Competitive Intensity through Physical Expansion and Omnichannel Scaling
Checkers Sixty60 Hyper Drives Digital Transformation and Reshapes Competition
Hypermarkets Is Set for Strong Growth as Walmart Reshapes Competition and Consumer Expectations through Value and Digital Innovation
Experiential Retail and Data-Driven Technology Redefine Customer Engagement and Operational Efficiency in Hypermarkets
Shoprite Holding Ltd Strengthens Market Leadership through Omnichannel Expansion While Competitors Reposition to Defend Share
Private Label Expansion and Loyalty Innovations Drive New Growth Opportunities
Discounters in South Africa
Key Data Insights
Automation and Outlet Expansion Strengthens Value Growth in Discounters
Automation and Outlet Expansion Strengthens Value Growth in Discounters
Refill Concepts Signal a Shift Towards Value Innovation and Sustainable Retail Formats
Discounters Is Set to Accelerate Expansion into Underserved Markets
Private Label and Loyalty Programmes Will Reinforce Price Leadership and Shopper Engagement
Selective Digitalisation and Operational Efficiency Will Underpin Long-Term Resilience in Discounters
Boxer Retail Ltd Accelerates Outlet Expansion to Strengthen Market Leadership and Drive Share Gains
Small Local Grocers in South Africa
Key Data Insights
Growth Is Supported by Community Demand and Entrepreneurial Expansion
Growth Is Supported by Community Demand and Entrepreneurial Expansion
Value Chain Development and Manufacturer Focus Reshape the Channel
Steady Growth Is Set to Be Supported by Government Funding and Formalisation Initiatives
Refill and Circular Economy Models Are Set to Reshape Sustainability in Small Local Grocers
Fintech and E-Commerce Will Accelerate Modernisation and Growth
Highly Fragmented Structure Limits Dominance and Reinforces Localised Competition in Small Local Grocers
General Merchandise Stores in South Africa
Key Data Insights
Value-Driven Demand and Experiential Retail Supports Growth in General Merchandise Stores
Value-Driven Demand and Experiential Retail Supports Growth in General Merchandise Stores
Takealot Drives Digital Inclusion through Township Franchise Hubs
H&M Invests in Experiential Retail, Sustainability and Circular Economy
Value Retailing and Evolving Consumer Demand Are Set to Drive Future Growth in General Merchandise Stores
Experiential Retail and Omnichannel Integration Will Reshape Competition
Experiential Retail, Format Evolution and Value-Driven Expansion Reshape Competition
Apparel and Footwear Specialists in South Africa
Key Data Insights
Apparel and Footwear Specialists Grow Steadily as Consolidation and Value-Driven Retail Reshape Competition
Apparel and Footwear Specialists Grow Steadily as Consolidation and Value-Driven Retail Reshape Competition
Shein’S Aggressive Online Expansion Disrupts Local Manufacturing Jobs
Consumer Expenditure Rises as Affordability and Outlet Expansion Boost Demand
Sustained Growth Is Set to Be Driven by Credit Innovation and Retail Expansion
Regulatory Reform and Local Sourcing Will Strengthen the Competitiveness of South Africa’S Apparel and Footwear Specialists
Technology Integration and Data-Driven Retail Models Will Redefine Operational Efficiency and Customer Engagement
Apparel and Footwear Specialists Consolidate as Leading Players Scale, Restructure, and Intensify Competition
Competitive Divergence Intensifies as Digital Leaders Gain Share and Structural Exits Reshape the Market
Appliances and Electronics Specialists in South Africa
Key Data Insights
Affordable Technology and Flexible Payments Drive Growth in Appliances and Electronics Specialists
Affordable Technology and Flexible Payments Drive Growth in Appliances and Electronics Specialists
Mtn Momo Accelerates Rent-To-Own Smartphone Adoption with Flexible Repayment
Hisense Elevates the Consumer Experience with Flagship Technology Store Launch
Growth Is Set to Be Driven by Affordability, Regulation, and Digital Adoption
Circular Economy Initiatives and E-Waste Regulation Are Set to Reshape the Market
Moderate Market Concentration and Fintech-Driven Disruption Reshapes Competition
Home Products Specialists in South Africa
Key Data Insights
Home Products Specialists Deliver Resilient Growth as Macroeconomic Easing and Last-Mile Innovation Reshape Demand
Home Products Specialists Deliver Resilient Growth as Macroeconomic Easing and Last-Mile Innovation Reshape Demand
Home Improvements Drive Sales, While Pet Retail Delivers Strong Value Growth
Spar’S Pet Storey Accelerates Pet Humanisation and Retail Consolidation through Immersive, Experience-Led Expansion
Macroeconomic Recovery and Strengthening Consumer Fundamentals Will Drive Market Expansion
Omnichannel Acceleration and Credit Solutions Are Set to Support Sales
Sustainability and Localisation Will Influence Long-Term Competitive Positioning
Consolidation and Acquisition-Led Expansion Reshape Competition in Home Products Specialists
Health and Beauty Specialists in South Africa
Key Data Insights
Steady Growth as Wellness Demand Supports Sales through Health and Beauty Specialists
Steady Growth as Wellness Demand Supports Sales through Health and Beauty Specialists
Private Label Expansion Reshapes Competition as Retailers Scale Affordable, Value-Driven Offerings
Experiential Retail and Online Competition Redefine Beauty Shopping
Structural Reform Will Underpin Sustained Market Growth and Strengthen the Central Role of Pharmacies
Intensifying Competition and Category Convergence Will Reshape Market Structure and Accelerate Fragmentation
Digital Transformation and Service Innovation Will Redefine the Role of Health and Beauty Specialists
Clicks Group and Dis-Chem Pharmacies Expand Loyalty and Service to Defend Their Leaderships
Competition Intensifies as Non-Traditional Entrants Expand Formats While Consolidation Remains Limited
Vending in South Africa
Key Data Insights
Drinks and Tobacco Vending Maintains Its Dominance, Driven by Urbanisation and Convenience
Drinks and Tobacco Vending Maintains Its Dominance, Driven by Urbanisation and Convenience
Foods Vending Outpaces Other Vending Areas as Urban Consumers Seek Convenience
Operators Pivot to Vaping Products as Health Concerns and Regulation Reshape Demand for Traditional Tobacco Products
Vending Is Set to Grow Steadily Despite Regulatory Pressure on Tobacco
Health Innovation, Sustainability, and Cashless Adoption Are Set to Redefine Vending
Vending Market Remains Highly Concentrated as Abi Products and Nestlé South Africa Maintain Their Leads
Direct Selling in South Africa
Key Data Insights
Direct Selling in South Africa Grows Modestly Amid Economic Recovery, Cautious Consumers, and Stricter Data Regulation
Direct Selling in South Africa Grows Modestly Amid Economic Recovery, Cautious Consumers, and Stricter Data Regulation
Digital Migration Empowers Sellers but Heightens Competition for Retention
Health and Beauty Selling Retains Its Sales Lead as Fashion Direct Selling Leads Growth
Steady Growth Is Set to Be Driven by Digitalisation, Health and Beauty Demand, and Shifting Consumer Preferences
Direct Selling Will Accelerate Digital Shift as Social Commerce, Livestreaming, and Influencer Models Redefine Growth
Direct Selling Is Set to Be Supported by Entrepreneurship Policies
Direct Selling in South Africa Becomes More Fragmented as Digital Transformation and New Entrants Reshape Competition
Retail E-Commerce in South Africa
Key Data Insights
Retail E-Commerce Growth Accelerates as Marketplaces and Grocery Delivery Reshape Consumer Behaviour
Retail E-Commerce Growth Accelerates as Marketplaces and Grocery Delivery Reshape Consumer Behaviour
Smart Fulfilment and Quick-Commerce Redefine Convenience in Retail E-Commerce
The Foschini Group’S Bash App Reshapes Shopper Journeys through Omnichannel Integration
Logistics Expansion and Marketplace Dominance Drive Structural E-Commerce Growth
Buy Now Pay Later Accelerates Financial Inclusion and Reshapes Online Purchasing Behaviour
Omnichannel Engagement and Social Commerce Redefine Digital Retail Experience
Retail E-Commerce Becomes More Fragmented as Takealot’S Lead Eases and Shoprite Gains Share through Logistics-Led Omnichannel Expansion
Country Reports Disclaimer
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, wholesale sales (e.g. Cash and Carry), and sales through cannabis dispensaries in markets where cannabis is sold legally. Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Retail research and analysis database.
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