The July performance marks a notable improvement in retail momentum, with seasonally adjusted sales increasing by 2.5% compared with June. This follows a 0.8% month-on-month decline in June and a 0.1% increase in May.
The latest figures point to broad-based growth across several retail categories, with general dealers making the largest contribution to the annual increase.
General dealers recorded 3.2% year-on-year growth in July, contributing 1.3 percentage points to the overall 3.4% increase.
The category was followed by retailers classified as “all other” retailers, whose sales increased by 6.8%, contributing 0.8 of a percentage point.
Retailers in textiles, clothing, footwear and leather goods also recorded positive growth, with sales rising by 2.9% and contributing 0.5 of a percentage point.
Specialised retailers of food, beverages and tobacco recorded 4.8% growth, contributing a further 0.4 of a percentage point.
The performance suggests that growth was not concentrated in a single retail category, with both everyday shopping channels and discretionary categories contributing to the July result.
The month-on-month figures provide a further indication of improving momentum.
Seasonally adjusted retail trade sales increased by 2.5% in July compared with June. This followed declines and modest growth in the preceding two months, making the July increase particularly significant.
Over the three months to July 2026, retail trade sales increased by 2.2% compared with the same three-month period in 2025.
General dealers again made the largest contribution, growing by 1.8% and contributing 0.8 of a percentage point. The “all other” retail category grew by 6.8%, contributing a further 0.7 of a percentage point.
On a seasonally adjusted basis, retail trade sales increased by 1.0% in the three months ended July compared with the previous three months.
General dealers contributed 0.5 of a percentage point to this increase, with sales rising by 1.1%. Specialised food, beverage and tobacco retailers grew by 4.2%, contributing 0.3 of a percentage point, while “all other” retailers increased by 1.9%, contributing 0.2 of a percentage point.
The July data provide a more positive picture of South Africa’s retail environment, particularly after weaker month-on-month performance earlier in the quarter.
The continued contribution from general dealers highlights the importance of high-frequency, everyday retail, while growth in specialised food, beverage and tobacco stores points to continued activity in food-related spending.
Meanwhile, the increase in clothing, footwear and leather goods suggests that consumers are also continuing to allocate spending towards categories beyond essential household purchases.
For retailers, the combination of stronger monthly growth and positive three-month performance provides a more encouraging backdrop heading into the second half of the year, although the figures remain a measure of sales growth rather than an indication of profitability or consumer financial health.
The July performance nevertheless shows that South Africa’s retail sector entered the second half of 2026 with stronger sales momentum, led by general dealers and supported by a wider range of retail categories.
