Visa’s first Retail Spend Monitor, which analyses holiday season retail spend for the seven-week period starting on 1 November, show overall holiday spend in South Africa increased 7%, year over year.
Visa Consulting & Analytics (VCA) provided the following highlights:
- Online shopping grows, driven by the convenience of digital: Online shopping increased by 23.3%, showing consumers are increasingly relying on its convenience during the busy holiday season.
- Consumers still show preference in physical retail experiences: Out of total retail spend in South Africa, 84% of total payment volume was in store versus 16% online, showing resilience of in-store shopping.
- Apparel and accessories: This holiday season saw a 12.9% rise in sales for clothing and accessories.
- Department store shopping sees a boost: This holiday season saw an 8.9% increase in shopping at department stores (vs. -6% last year).
- Home improvements spend on the rise: Spending on home improvement and supplies increased by 7.9%.
Photo supplied
“South Africa witnessed dynamic spending growth in the build-up to the holiday season,” says Sandy Samaan, vice president of advisory at Visa for Sub-Saharan Africa. “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.”
The VCA Retail Spend Monitor reports on national retail sales across all payment types. The findings are based on a subset of aggregate retail sales activity in the Visa payments network, coupled with survey-based estimates for other forms of payment. This comprehensive analysis provides valuable insights into consumer spending behaviors and trends, aiding retailers in strategic planning and market positioning.