In May, improved sales were supported by World Cup related spending on items including clothing and electronic goods.
Nedbank economist Johannes Khosa said: "Retail sales received some boost from the FIFA World Cup in June, rising by 7.4% year-on-year from a revised 4.5% year-on-year."
He said the effect of the FIFA World Cup is also likely to feature in July's retail sales figures.
"Beyond that, sales will remain relatively firm on higher disposable income and lower interest rates, but the growth rate will be contained by a stagnant labour market, sharp increases in administered prices and high household debt levels," he said.
Stats SA said in June 2010, the highest annual growth was recorded from retailers in household furniture, appliances and equipment at 17.7%. This was followed by retailers in textiles, clothing footwear and leather goods at 13.1%.
"Retail trade sales in real terms rose by 4.9% in the second quarter of 2010 compared with the second quarter of 2009," said Stats SA.
Commenting on the bearing the data has on interest rates, Nedbank said it expects interest rates to remain unchanged until the third quarter of the year.
"The loss in economic momentum over the second quarter and a very strong rand has significantly increased the chance of another interest rate cut at the next MPC meeting."
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