Statistics South Africa reports that retail trade sales increased by 2.3% on an annual basis in February.
Analysts say sales outperformed the market’s expectation, but a resurgence in infection rates and resultant lockdown measures still pose downside risks to the sector’s recovery.
The largest positive annual growth rates were recorded for retailers in household furniture, appliances and equipment, and also textiles, clothing, footwear, and leather goods.
Unpacking February retail sales figures: Lionel October
The main positive contributors to the 2.3% increase were retailers in textiles, clothing, footwear and leather goods and general dealers. But in the three months ended sales decreased by 0,9% compared with the same period last year.
The main negative contributor to this decrease was all ‘other’ retailers.
Nedbank economists say the sector will likely make a positive contribution to the first-quarter GDP.
They say considering the current pace of recovery, base effects, low interest and inflation, sales are expected to perform well in 2021.
