by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – ONLINE retail in South Africa passed the R50 billion (US$2,91 billion) milestone in 2022.
This is attributed to ongoing boom in demand for home deliveries.
“Online Retail in South Africa 2022”, a study conducted by World Wide Worx with Mastercard, reveals that the total growth for online retail in South Africa in 2022 came to 35 percent, bringing the total of online retail in South Africa to R55 billion.
This comes after 40 percent growth the previous year took the total to R42,3 billion in 2021.
“One can call this the pandemic dividend,” said World Wide Worx Managing Director, Arthur Goldstuck.
He is the principal analyst on the research project.
“The 2020 boom in home deliveries has continued for the past two years, as retailers compete aggressively in every area of online shopping,” Goldstuck said.
Online sales were boosted by Black Friday, with all banks reporting massive increases in card and online spending on what has become one of the biggest shopping days of the year.
Statistics South Africa, in its Statistical Release for Retail Trade Sales for January 2022, reported that total retail for 2021 had reached R1,166 trillion, up from R1,063 trillion in 2020 – making for healthy 9,7 percent growth, but after a 4,4 percent fall in 2020.
Gabriel Swanepoel, country manager of Mastercard South Africa, said since physical shopping was limited during the hard lockdown, it was then that they first saw a rise in consumers resorting to online shopping.
“Due to this, consumers got comfortable – but with comfort of use we are seeing emerging consumer needs and expectations that go beyond being able to shop online,” Swanepoel explained.
– CAJ News