Retail sales continue to drop

Low sales in tobacco products and beverages saw South Africa’s retail sales dropping to 3.5% year-on-year in January, following a revised decrease of 1.2% in December last year. The biggest negative contributors were food, beverages, tobacco stores and the general dealers’ categories. Food, beverages, and tobacco stores experienced a 33.6% year-on-year drop in sales. General dealers posted a 6% year-on-year decrease, contributing a negative 2.5% year-on-year to the overall decline. The home improvement trend, which started at the beginning of the lockdown last year, continues to drive growth in this sector as household furniture, appliances, and equipment recorded a year-onyear increase of 9.9%.