Overall holiday spending in South Africa increased by 7.0% year-on-year between 2023 and 2024, according to the Retail Spend Monitor from Visa Consulting & Analytics (VCA).
The Retail Spend Monitor analysed holiday season retail spend for a seven-week period starting on November 1, 2024.
The 7.0% year-on-year growth outpaced the 4.8% growth that was reported between 2022 and 2023.
The analysis also revealed the following:
- Online shopping grew by 23.3% with consumers showing an increasing reliance on the convenience of it during the busy holiday season.
- Consumers still prefer the physical retail experiences. From the total retail spend in SA, 84% of total payment volume was in store compared to the 16% of online payments.
- This holiday season saw a 12.9% jump in sales for clothing as well as accessories.
- There was a boost in department store shopping with the holiday season seeing an 8.9% increase in shopping at these types of stores.
- Spending on home improvements during the festive season was also on the rise as there was a 7.9% increase in spend for home improvement and supplies.
- The food and groceries retail category saw 6.1% growth between 2023 and 2024.
- The smallest growth was for the general retail services category which only saw a 2.4% increase.
According to Sandy Samaan, vice president of Advisory, Visa for Sub-Saharan Africa, SA saw strong spending growth in the run up to the festive season.
Samaan said: "South Africa witnessed dynamic spending growth in the build-up to the holiday season. This was attributed to a combination of factors: a strengthening of the economy as interest rates dropped and inflation rates were reduced, plus healthy Black Friday deals.
"This has driven spending in comparison to last year, especially across department stores, food & groceries, and home improvement & supplies, with the highest growth rates witnessed in apparel & accessories."
IOL Business