SA’s retail sales slow in October as consumers felt impact of high cost of living

South Africa’s retail sales growth slowed in October as consumers continue to feel the impact of the high cost of living. Data from Statistic South Africa shows that retail trade sales decreased by an annual 0.6 % during the month.

Retail sales declined for the second consecutive month, an indication that consumers in South Africa remain under pressure.

The rising cost of living, high inflation and interest rates have negatively affected consumers’ disposable income.

“The high cost of living has led to retail sales being very grim in the month of October and having said that it could be that consumers held to their money until Black Friday,” says Independent economist Elize Kruger.

The largest negative contributors to the retail sales decrease were retailers in hardware, paint, and glass, as well as pharmaceuticals. And the largest positive contributors were retailers in textiles, clothing, footwear and leather goods.

But it’s not all doom and gloom, with economists expecting an uptick in retail sales for November as consumers capitalised on Black Friday specials to make purchases.

VIDEO: Consumers affected by the high cost of living [embedded content]