Online Retail Sales Surged Over The Festive Season

The retail sector saw a marked increase in sales in November and December 2024 compared to the previous year, signalling renewed consumer sentiment and increased spending.

However, the way consumers engage with retailers is changing: they've become more accustomed to the convenience of e-commerce, with data from industry players including Visa showing that the proportion of online sales to total retail spend over the festive season was markedly higher than the rest of the year.

"South Africa holiday retail spend jumped by 7 year on year. Online shopping increased by 23.3 year on year, showing consumers are increasingly relying on its convenience during the busy holiday season. Of total retail spend in South Africa, 84 of payment volume was in-store versus 16 online," Visa said in a report that looked at spending from 1 November to 31 December.

Akshay Bhayroo, head of data science in First National Bank's credit card division, said the company also saw an uptick in retail sales in December, with online retail sales growth of 19 year on year among its clients.

Bhayroo said online spend contributed 19 to total retail spend in the period, also far higher than the 6 industry average.