In an unexpected turn of events, South Africans are buying more now from retailers than previous years, causing a two-year high mostly among textile and clothing businesses.
This is according to Statistics SA. In August of this year,it showed that retail sales were up by 4.1% year on year in June 2024, despite the odds of load shedding in the first half of the year, a stubborn interest rate, higher cost of living overall and steep fuel prices.
South Africa also ranked higher in this years UNs World Happiness Report, jumping to number 83, two up from 2023, with a happiness score of 5.422. This compared to the pre-Covid years where we ranked 106th.
There is also a noteworthy surge in consumer sentiment after the outcome of the elections in May, with the formation of the Government of National Unity all of which is good for business after being so badly battered by the Covid years.
While this is promising for retail brands in particular, given that the upcoming Black November and festive season shopping spree is just around the corner, its important that they get the basics right and empathise with consumers whose wallets have been significantly smaller this year due to lower wage or salary increases and higher costs of everyday goods and services.
