Consumers have continued to struggle as a result of the economic effects of the COVID-19 pandemic.
Stats SA data shows retail trade sales contracted for a second consecutive month – from 4.5% in March to 0.8 in April.
When compared to the same time last year, retail trade sales increased by 95.8%. This is as a result of a low base in April last year when the country was under stringent lockdown level 5 at the advent of the COVID-19 pandemic.
The largest contributors were from retailers in textiles, clothing and footwear as well as retailers in hardware, paint and glass. Consumers’ abilities to spend have been negatively impacted by the high unemployment levels, lower salaries and strict credit extension by lenders.
Economists expect the continued low interest rate environment, the vaccine rollout and improved economic prospects to help boost the sector.
However on the downside, they say, the stringent lockdown imposed as a result of the third wave of increased COVID infections will slow the pace of recovery.
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