South African retail sales show resilience amid rising costs

South African retail sales grew by 3.3% year-on-year in August 2026, according to a review by the Bureau for Economic Research. While the growth rate was slightly lower than the 3.4% recorded in July, the sector demonstrates resilience despite mounting pressure on household budgets from rising fuel and transport costs.

Specific sectors showed varying performance, with clothing, footwear, and leather goods recording 6.5% growth. Within individual company reports, Pick n Pay saw a 35.4% jump in online sales during the six months leading to August 30, even as its overall turnover remained flat at R36.4 billion. Pick n Pay has integrated 'Penny,' an AI-powered shopping assistant built on Google’s Gemini models, to improve order conversion and average order value.

Retailers continue to navigate a landscape where consumers must balance essential spending against rising costs for electricity, housing, and transport. While Pick n Pay's trading loss narrowed to R516 million, the broader market remains sensitive to changing household expenses.