NIQ South Africa’s latest State of the Retail Nation report for Q4 and the full year 2024 reveals steady retail growth, with a strong year-end boost from festive season sales but only moderate overall gains, CNBC reported.
According to the report, South African consumers spent approximately R637 billion on fast-moving consumer goods (FMCG) across both traditional and modern retail channels in 2024. However, the 3.4% annual growth was largely driven by rising prices rather than increased consumer demand.
The Technology & Durables (T&D) market grew just 1.8% to R90bn in 2024, held back by a 2% decline in telecoms, its largest segment. Meanwhile, consumer spending reached R359bn on food and liquor and R278bn on other essentials, including beverages, personal care, healthcare, and household goods.
Private label brands outpaced the market with 7.1% sales growth in 2024, reaching R98.7bn. Their success was driven by broad category presence, strong shelf placement, and increasing consumer demand for cost-effective options.
Overall, retail sales rose 4.8% year-over-year to R177bn in Q4 2024, with liquor, personal care, and ambient foods seeing the strongest growth.
‘Despite much-improved consumer sentiment off the back of lower levels of load shedding, social grant increases and slower price increases, retail recorded only moderate gains in sales during 2024,’ said Zak Haeri, Managing Director for NIQ in South Africa.
‘High unemployment and rising living costs continue to challenge many households, with consumers seeking value when they shop. Fiercer price competition and aggressive discounting continue to suppress growth in the FMCG and T&D segments alike,’ he added.
Haeri noted that consumers remain focused on essential spending, leveraging loyalty programmes, private labels, and promotions to stretch their budgets. While some opt for bulk savings or smaller packs to manage costs, super-premium segments are also expanding, reflecting varied financial pressures.
The Managing Director also added that despite improved sentiment, challenges like a potential VAT hike and global trade volatility persist. However, adaptable consumers and retailers who balance value-driven strategies with premium opportunities will be best positioned for success.
NIQ South Africa is a leading provider of market intelligence and consumer insights, delivering in-depth analysis of retail and shopper trends across the country. As part of NielsenIQ (NIQ), it tracks sales performance, pricing dynamics, and shifting consumer behaviours, helping businesses navigate the evolving retail landscape with data-driven strategies.
