Retail sales slow significantly in January

South African retail trade sales at constant (2008) prices for January recorded a 3.9% growth year on year (y/y) after an unrevised 8.7% growth in December, figures released on Wednesday, 14 March 2012, by Statistics SA showed.

Retail trade sales at constant (2008) prices for January were expected to increase to 7.5% y/y according to a survey of leading economists by I-Net Bridge.

Forecasts among the nine economists ranged from 4.5% to 9.2%.

Measured in real terms (constant 2008 prices), seasonally adjusted retail trade sales growth fell 0.6% in January compared with December.

This followed month-on-month changes of 1.4% in December and -0.1% in November.

In terms of the 3.9% y/y growth in January, the highest annual growth rate was recorded for general dealers, with 5.7%; retailers in hardware, paint and glass, with 5.4%; and retailers in pharmaceutical and medical goods, cosmetics and toiletries, with 5.2%.

In real terms, retail trade for the three months ended January 2012 reflected an increase of 6.9% compared with the three months ended January 2011.

The largest contributors to the 6.9% increase were general dealers, with 7.0% and contributing 2.6 percentage points; retailers in textiles, clothing, footwear and leather goods, with 8.3% and contributing 1.9 percentage points; and all other retailers, with 6.6% and contributing 0.8 of a percentage point.