South Africa’s online retail turnover is forecast to reach 130 billion rand, equivalent to $7.42 billion, in 2025, representing 10% of the country’s total retail trade.
Growth is being powered by on-demand grocery platforms, surging online fashion sales, and the entry of global competitors such as Amazon, according to a new study.
The report, released on Thursday by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Afrika, shows that online retail expanded by about 35% in 2024, rising to an estimated 96 billion rand and making up roughly 8% of all retail sales.
Grocery remains the fastest-growing segment, with momentum driven by Shoprite’s Checkers Sixty60 app alongside delivery services from Pick n Pay and Woolworths, Reuters reported.
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Fashion has also become a major growth driver as retailers upgrade their digital platforms.
Enhanced user experiences and improved tools for size and fit are helping attract shoppers, said Arthur Goldstuck, CEO of World Wide Worx.
“Online retail has moved from being an experiment on the margins to a structural force in the economy.
Nearly one in every 10 rand spent at retail will now be online,” he noted.
Amazon’s arrival in South Africa in 2024 has further accelerated adoption.
The U.S. e-commerce giant is now used by 12.3% of online shoppers, placing it just behind Shein and Temu, which together account for 15.3%.
Takealot remains the dominant player, used by 31.9% of shoppers, the report found.
Shein and Temu made swift gains between 2023 and 2024, generating an estimated 7.3 billion rand in turnover and securing nearly 40% of online clothing sales in 2024.
However, their trajectory has slowed due to tighter customs rules, the closure of tax loopholes, and the strong performance of local retailers.
“Their growth is now expected to slow, suggesting coexistence with, rather than displacement of, established players,” Goldstuck said.
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Image Credit: Reuters
