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This page is dedicated to information and statistics regarding South Africa's trade sale. Trade sales includes the retail, wholesale and motor trade sales sectors.
We will update this page on a ad hoc basis with statistics and numbers regarding SA's trade industry |
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26 May 2020: Retail trade sales by dealership type
The summary below shows the retail trade sales by dealer type over the three month period December 2019- February 2020 (in Rand millions expressed as 2015 constant prices)
- General dealers: R 107 172 (42,5% of total sales)
- Food, beverages and tobacco in specialised stores: R 19 747 (7.8% of total sales)
- Pharmaceuticals and medical goods, cosmetics and toiletries: R 16 559 (6.6% of total sales)
- Textiles, clothing, footwear and leather goods: R 48 800 (19.4% of total sales)
- Household furniture, appliances and equipment: R11 554 (4.6% of total sales)
- Hardware, paint and glass: R18 145 (7.2% of total sales)
- All other retailers: R30 149 (12% of total sales)
- Total: R252 126 (100% of total sales)
14 February 2020: New vehicle sales vs used vehicle sales in South Africa
In this article we take a look at the latest motor trade sales numbers released by South Africa and compare the total income earned from new vehicle sales compared to used vehicle sales. Are South African starting to buy more used vehicles instead of new vehicles as they struggle in a weak South African economy? The summary below shows the total value of new vehicles and used vehicles purchased in South Africa during December 2019:
So during December 2019 for every R1 spent on used vehicle sales in South Africa, South African spent R1.39 on new vehicle sales. Of total vehicle sales (new and used vehicle sales) in December 2019, which amounted R22.087 billion, 58.1% was made up by new vehicle sales and 41.9% was made up by used vehicle sales. And one has to remember new vehicle sales tend to be lower towards the end of each year, as consumers tend to wait for the new year to buy cars so that their year of model registration is the new year.
Looking at the year on year growth in the value spent on new and used vehicle we see the following:
But the biggest amount of money spent in the motor trade industry in South Africa is money spent on fuel. During December 2019, South Africans spent R17.035 billion on fuel.
- New Vehicle Sales: R 12 831 000 000
- Used Vehicle Sales: R 9 256 000 000
So during December 2019 for every R1 spent on used vehicle sales in South Africa, South African spent R1.39 on new vehicle sales. Of total vehicle sales (new and used vehicle sales) in December 2019, which amounted R22.087 billion, 58.1% was made up by new vehicle sales and 41.9% was made up by used vehicle sales. And one has to remember new vehicle sales tend to be lower towards the end of each year, as consumers tend to wait for the new year to buy cars so that their year of model registration is the new year.
Looking at the year on year growth in the value spent on new and used vehicle we see the following:
- New Vehicle Sales: 6.3%
- Used Vehicle Sales: 9.4%
But the biggest amount of money spent in the motor trade industry in South Africa is money spent on fuel. During December 2019, South Africans spent R17.035 billion on fuel.
28 January 2020: Wage inflation in South Africa's trade sector
Yesterday we estimated the wage/salary inflation of various sectors of the South African economy by looking at gross earnings of the various sectors as well as the number of employees in each sector. The earnings was divided by the number of employees and an estimated average wage per person was calculated. This was done for a number of quarters. The corresponding quarters of various years where then compared to one another in order to estimate an annual rate of wage inflation in South Africa. The image below shows the year on year wage inflation in South Africa's trade sector.
One this from the image above is very clear, and that is that the wage inflation in the trade sector has been declining strongly in recent years, with the annual wage inflation in the retail sector sitting at 4.02% as at the end of September 2019, which is very close to the current level of South Africa's official inflation rate, so essentially any wage increases given to staff in the trade sector has been eroded by inflation (rising prices of goods and services consumed by South Africans).
14 November 2019: Wholesale and retail trade sales update
Below a short update on the latest trade sales data published by Statistics South Africa for both wholesale and retail trade sales.
South Africa's Retail Trade Sales
Measured in real terms (constant 2015 prices), retail trade sales increased by 0,2% year-on-year in September 2019. Retailers in textiles, clothing, footwear and leather goods grew by 3,0% (contributing 0,5 of a percentage point) while general dealers fell by 0,7% (contributing -0,3 of a percentage point) over this period
South Africa's Wholesale Trade Sales
Measured in real terms (constant 2015 prices), wholesale trade sales decreased by 3,9% in September 2019 compared with September 2018.
Seasonally adjusted wholesale trade sales increased by 1,8% in September 2019 compared with August 2019. This followed month-on-month changes of -7,0% in August 2019 and 9,1% in July 2019. In the third quarter of 2019, seasonally adjusted wholesale trade sales increased by 2,9% compared with the previous quarter.
In South Africa where a large part of economic growth is fueled by consumer spending (since their is little business investments and government investment spending taking place) it is a very bad sign if wholesale trade sales for the last quarter was reported as declining and the retail trade sales were recorded as being flat. Basically the consumer cannot help to kick start growth in the SA economy. The only way they would be able to assist if there is significant relief provided to consumers by the South African Reserve Bank (SARB) monetary policy committee (MPC) in cutting unnecessary high interest rates in South Africa to more acceptable levels. This will reduce the debt burden of millions of South Africa's and free up money for South African consumers to use for spending which could help in generating some positive growth momentum in the South African economy. And growth leads to further growth. The South African Reserve Bank should remember that their mandate is to ensure stable prices as well as balanced growth. Prices as shown by South Africa's inflation rate (CPI) has been very stable in recent times and well within the inflation target so it is time that SARB looks to fulfill the rest of its mandate and pursue growth, and it can do this by meaningfully cutting interest rates
South Africa's Retail Trade Sales
Measured in real terms (constant 2015 prices), retail trade sales increased by 0,2% year-on-year in September 2019. Retailers in textiles, clothing, footwear and leather goods grew by 3,0% (contributing 0,5 of a percentage point) while general dealers fell by 0,7% (contributing -0,3 of a percentage point) over this period
South Africa's Wholesale Trade Sales
Measured in real terms (constant 2015 prices), wholesale trade sales decreased by 3,9% in September 2019 compared with September 2018.
Seasonally adjusted wholesale trade sales increased by 1,8% in September 2019 compared with August 2019. This followed month-on-month changes of -7,0% in August 2019 and 9,1% in July 2019. In the third quarter of 2019, seasonally adjusted wholesale trade sales increased by 2,9% compared with the previous quarter.
In South Africa where a large part of economic growth is fueled by consumer spending (since their is little business investments and government investment spending taking place) it is a very bad sign if wholesale trade sales for the last quarter was reported as declining and the retail trade sales were recorded as being flat. Basically the consumer cannot help to kick start growth in the SA economy. The only way they would be able to assist if there is significant relief provided to consumers by the South African Reserve Bank (SARB) monetary policy committee (MPC) in cutting unnecessary high interest rates in South Africa to more acceptable levels. This will reduce the debt burden of millions of South Africa's and free up money for South African consumers to use for spending which could help in generating some positive growth momentum in the South African economy. And growth leads to further growth. The South African Reserve Bank should remember that their mandate is to ensure stable prices as well as balanced growth. Prices as shown by South Africa's inflation rate (CPI) has been very stable in recent times and well within the inflation target so it is time that SARB looks to fulfill the rest of its mandate and pursue growth, and it can do this by meaningfully cutting interest rates
13 June 2019: April 2019 Motor trade sales
Motor Trade sales released earlier today by Statistics South Africa showed the following growth for the various motor trade categories:
The following shows the total Rand value spent on new cars in South Africa in April 2019, the total Rand value spent on used cars in South Africa during April 2019 as well as the amount of money spent by South Africans on fuel in April 2019
Fuel sales in South Africa during April 2019 made up 29% of total spending in the motor trade industry during April 2019, new vehicles made up 23% of spending in the motor trade industry during April 2019, while used vehicles made up 18.9% of total spending in the sector. A close fourth place goes to sales of accessories (and extras on cars) which made up 18% of total spending in the motor trade sales industry during April 2019
- Fuel sales: 11.65%
- Sales of accessories: 11.65%
- Total: 10.38%
- New vehicle sales: 10.17%
- Used vehicle sales: 9.95%
- Workshop income : 8.16%
- Convenient store sales: 1.48%
The following shows the total Rand value spent on new cars in South Africa in April 2019, the total Rand value spent on used cars in South Africa during April 2019 as well as the amount of money spent by South Africans on fuel in April 2019
- Fuel sales: R 15 798 000 000
- New vehicle sales: R 13 017 000 000
- Used vehicle sales: R 10 264 000 000
- Sales of accessories: R 10 149 000 000
- Workshop income: R 3 352 000 000
- Convenient store sales: R 1 854 000 000
- Total: R 54 434 000 000
Fuel sales in South Africa during April 2019 made up 29% of total spending in the motor trade industry during April 2019, new vehicles made up 23% of spending in the motor trade industry during April 2019, while used vehicles made up 18.9% of total spending in the sector. A close fourth place goes to sales of accessories (and extras on cars) which made up 18% of total spending in the motor trade sales industry during April 2019
13 June 2019: April 2019 wholesale growth ticks up strongly
In the latest wholesale trade sales data released by Statistics South Africa, retail trade sales grew by 13.3% year on year (note this is for current prices, so before the effects of inflation has been removed). When looking at the year on year growth rate in wholesale trade sales after the effects of inflation has been removed April 2019 wholesale trade sales increased by 5.5% compared to April 2018. This is pretty significant growth. But one should be cautioned it is coming off a low base as growth in April 2018 declined when compared to April 2017. The summary below shows the year on year growth (in current prices) for various wholesale dealer types:
So pretty strong increases for most dealer types (note these sales include the effects of inflation). Precious stones, jewellery and silverware as well as solid, liquid and gaseous fuels fuels and machinery, equipment and supplies were the main drivers of the strong showing in wholesale trade sales during April 2019.
The summary below shows the relative contribution of the various wholesale dealer types to total wholesale trade sales for April 2019:
- Precious stones, jewellery and silverware 77.7%
- Other intermediate products, waste and scrap 39.7%
- Textiles clothing and footware 33.6%
- Agricultural raw materials and livestock 16.1%
- Machinery, equipment and supplies 15.9%
- Solid, liquid and gaseous fuels and related products 12.4%
- Other goods 9.5%
- Food beverages and tobacco 9.1%
- Construction and building materials 7.9%
- Metals and metal ores 7.1%
- Other household goods except precious stones 6.0%
- Fee or contract basis -7.3%
So pretty strong increases for most dealer types (note these sales include the effects of inflation). Precious stones, jewellery and silverware as well as solid, liquid and gaseous fuels fuels and machinery, equipment and supplies were the main drivers of the strong showing in wholesale trade sales during April 2019.
The summary below shows the relative contribution of the various wholesale dealer types to total wholesale trade sales for April 2019:
- Solid, liquid and gaseous fuels and related products : 23.52%
- Food beverages and tobacco: 14.52%
- Machinery, equipment and supplies: 12.91%
- Other household goods except precious stones: 12.80%
- Other goods: 7.57%
- Agricultural raw materials and livestock: 6.78%
- Construction and building materials: 5.06%
- Other intermediate products, waste and scrap: 4.75%
- Precious stones, jewellery and silverware: 3.47%
- Fee or contract basis: 3.45%
- Textiles clothing and footware: 2.90%
- Metals and metal ores: 2.26%
12 June 2019: April 2019 retail trade sales showing modest growth
Total retail trade sales showed moderate growth year on year for April 2019. While the first quarter was a real struggle for the sector one wonders if the modest growth recorded in April is the start of a turn around in the sector? We doubt it, but with our struggling economy any form of good news will be taken right now. The summary below shows the year on year growth rate in retail trade sales for April 2019 for both current prices and constant prices (effects of inflation have been removed).
Based on the latest retail trade sales data the relative size of various retail outlet types are as follows:
- Total retail trade sales (constant prices): 2.39%
- Total retail trade sales (current prices): 4.56%
Based on the latest retail trade sales data the relative size of various retail outlet types are as follows:
- General dealers: 42.6%
- Textiles,clothing,footwear and leather goods: 17.9%
- All other: 11.7%
- Pharmaceutical and medical goods,cosmetics and toiletries: 8.6%
- Food, beverages and tobacco in specialised stores: 8.2%
- Hardware,paint and glass: 7.2%
- Household furniture,appliances and equipment: 3.9%
9 June 2019: Trade, Accommodation and catering vs Household expenditure
In this update we take a look at how the Trade (wholesale, retail and motor trade), Accommodation and Catering sector quarter on quarter growth compares to that of household expenditure. As the Trade, Accommodation and Catering sector is largely driven by spending of households
As the line chart shows, the trends in the two variables are very similar and concerning for the economy and South African households is the fact that the growth rates over time keeps declining, with the overall trend over time being a continuous decline. Basically households are curbing their spending and this has a significant impact on the Trade, Accommodation and catering industry, which is a very large employing sector in the South African economy, so declines in this industry will surely lead to job loses in this sector in coming months and quarters, which in turn will further affect South Africa's already weak economy. And as more people loose their jobs, households will curb their spending even more, forcing down the growth in household spending even more. Its a vicious cycle that needs to be reversed. And as we showed the other day, perhaps it should start with the South African Reserve Bank (SARB) cutting interest rates which we believe is far to high considering our current levels of inflation and poor economic climate.
17 May 2019: New vehicle sales in Q1:2019 a lot lower than in Q1:2018
In a clear sign that the South African consumer and economy is struggling more and more, the latest motor trade sales data published by Statistics South Africa showed that new vehicle sales for the first quarter of 2019 was down by -8.5% compared to the value of new vehicle sales in the first quarter of 2018.
For Q1: 2018 new vehicle sales amounted to R45.406 billion, while for Q1:2019 the total value of new vehicle sales came in at R41.535 billion. That is R3.87 billion less on new vehicles sold in the first quarter of 2019 compared to the first quarter of 2018. New car dealerships must be taking significant strain considering the numbers above. Part of the reason for this could also be continued increase in the average interest rate charged on motor vehicle loans as this update from earlier in the year shows.
While the value of used vehicle sales also declined in Q1:2019 when compared to the sales in Q1:2018 the percentage of the decline was a lot less than that of new vehicles. For Q1:2018, R31.399 billion in used vehicles were sold, compared to R30.169 billion in used vehicles sold during Q1:2019. This represents a decline of -3.9% in the value used vehicle sold in Q1:2019 when compared to Q1:2018. Stated differently the value of used vehicles sold in Q1:2019 was R1.23 billion less than the value of used vehicles sold during Q1:2018
For Q1: 2018 new vehicle sales amounted to R45.406 billion, while for Q1:2019 the total value of new vehicle sales came in at R41.535 billion. That is R3.87 billion less on new vehicles sold in the first quarter of 2019 compared to the first quarter of 2018. New car dealerships must be taking significant strain considering the numbers above. Part of the reason for this could also be continued increase in the average interest rate charged on motor vehicle loans as this update from earlier in the year shows.
While the value of used vehicle sales also declined in Q1:2019 when compared to the sales in Q1:2018 the percentage of the decline was a lot less than that of new vehicles. For Q1:2018, R31.399 billion in used vehicles were sold, compared to R30.169 billion in used vehicles sold during Q1:2019. This represents a decline of -3.9% in the value used vehicle sold in Q1:2019 when compared to Q1:2018. Stated differently the value of used vehicles sold in Q1:2019 was R1.23 billion less than the value of used vehicles sold during Q1:2018
21 April 2019: Update on latest motor trade sales
In this update we take a look at the latest motor trade sales data as published by Statistics South Africa. So just how much did South Africans spend on buying new and used vehicles in South Africa? Or are you interested to know how much South Africans spend on servicing their vehicles each month? Or the amount of money consumers spend each month at fuel station forecourt shops such as Woolies shops at Engen garages, or Pick 'n Pay stores at BP garages.
Below a summary of the money spent by South Africans on various motor trade related categories during February 2019:
South Africans spent R3.28 billion on workshops for servicing and fixing their vehicles and R1.76 billion was spent at garage forecourts during February 2019. In total R51.94 billion was spent on motor trade related goods and services during February 2019.
Below a summary of the money spent by South Africans on various motor trade related categories during February 2019:
- Fuel: R 13 800 000 000
- New vehicles: R 13 403 000 000
- Used vehicles: R 10 000 000 000
- Accessories: R 9 697 000 000
- Workshop: R 3 279 000 000
- Convenience store: R 1 756 000 000
South Africans spent R3.28 billion on workshops for servicing and fixing their vehicles and R1.76 billion was spent at garage forecourts during February 2019. In total R51.94 billion was spent on motor trade related goods and services during February 2019.
24 March 2019: Focusing on the year on year growth in retail trade sales
The bar chart below shows the year on year growth rate in retail trade sales (seasonally adjusted and constant prices). Seasonally adjusted refers to the fact that seasonal effects have been removed from the data, and constant prices means the effects of inflation have been removed from the data set.
The average year on year growth rate in retail trade sales since January 2017 is sitting at 2.67%. Concerning for South Africa retailers is the fact that the year on year growth in retail sales over the last couple of months has been well below the longer term average growth achieved. A clear sign of how tough the going is in South Africa for retailers right now. With consumer spending making up almost 60% of South Africa's GDP, a slow down in consumer spending leads to a slow down in retail and wholesale trade sales which in turn leads to a slow down in economic growth in South Africa. And the last thing South Africa's economy needs now is a slow down. It needs to be growing at rates a lot faster than it has been if South Africa has any chance of reducing the high levels of unemployment in South Africa, with the unemployment rate sitting close to all time high levels of around 27.5%. See more regarding South Africa's unemployment rate here.
The retail sector is also responsible for a large chunk of the employment numbers in South Africa. Especially for the youth. And youth unemployment is a big problem. By 2014 South Africa had 3 million youths classified as not in employment, education or training (NEET). This is shocking number and is probably the single biggest problem facing South Africa right now. See more about South Africa's NEET here.
The retail sector is also responsible for a large chunk of the employment numbers in South Africa. Especially for the youth. And youth unemployment is a big problem. By 2014 South Africa had 3 million youths classified as not in employment, education or training (NEET). This is shocking number and is probably the single biggest problem facing South Africa right now. See more about South Africa's NEET here.
17 February 2019: Retail and wholesale trade sales growth over last 2 years
In this update we take a look at the year on year growth rates for both wholesale and retail trade sales. And worryingly for South Africa's economy is the fact that the usual bumper month in trade sales, December, actually showed declines in the seasonally adjusted and adjusted for inflation sales. Part of the reason for this is the fact that Black friday sales, which takes place in November is now taking sales away from December, as people buy Christmas gifts in November instead of doing the usual Christmas shopping in the mad rush in December.
The total value of wholesale and retail trade sales for the last quarter of 2018 (Oct 2018- Dec 2018) amounted to the following:
Average year on year growth rate for wholesale and retail trade sales for 2017 and 2018 is shown below:
2017
2018
So while retail trade sales average growth in 2018 declined compared to that of 2017, the wholesale trade industry made a encouraging recovering from a negative average year on year growth rate in 2017 of -2.7% in 2017 to a positive 0.6% in 2018
- Wholesale trade: R470.5 billion
- Retail trade: R234.7 billion
Average year on year growth rate for wholesale and retail trade sales for 2017 and 2018 is shown below:
2017
- Wholesale trade: -2.7%
- Retail trade: 3.2%
2018
- Wholesale trade: 0.6%
- Retail trade: 2.3%
So while retail trade sales average growth in 2018 declined compared to that of 2017, the wholesale trade industry made a encouraging recovering from a negative average year on year growth rate in 2017 of -2.7% in 2017 to a positive 0.6% in 2018
16 January 2019: Retail trade sales for November 2018
Retail trade sales for November 2018 increased by 3.3% year on year when looking at seasonally adjusted constant prices. Total retail trade sales came in at R87.8 billion in November 2018, compared to R85.2 billion in November 2017.
The impact of black friday on retail sales in November of each year can clearly be seen. Month on month saw November 2018 grow at 16.1% compared to October 2018 (not seasonally adjusted but inflation removed from the figures). To add values to this:
That is a almost R12 billion spike in the retail trade sales from November 2018 compared to the prior month. Clearly showing that the black Friday craze is taking off in South Africa. Sadly a lot of these so called black Friday specials weren't even specials, but people get sucked in by the hype and craze and buy goods without knowing what they actually cost a week or month before black Friday. The other concern is the fact that black Friday spending took place on credit. So while lots of spending took place, a lot of it was spent on credit, which acrues interest which needs to be paid back, and if the interest is added to the cost of the items bought during black Friday the cost will probably be far greater than what the item cost before black Friday. Consumer spending driven by high levels of debt in South Africa is not sustainable in the long run and at some point the debt has to be paid back. And this will place a burden on consumer spending going forward, especially if the South African Reserve Bank continues to raise interest rates.
The impact of black friday on retail sales in November of each year can clearly be seen. Month on month saw November 2018 grow at 16.1% compared to October 2018 (not seasonally adjusted but inflation removed from the figures). To add values to this:
- October 2018: R75.83 billion
- November 2018: R87.8 billion
That is a almost R12 billion spike in the retail trade sales from November 2018 compared to the prior month. Clearly showing that the black Friday craze is taking off in South Africa. Sadly a lot of these so called black Friday specials weren't even specials, but people get sucked in by the hype and craze and buy goods without knowing what they actually cost a week or month before black Friday. The other concern is the fact that black Friday spending took place on credit. So while lots of spending took place, a lot of it was spent on credit, which acrues interest which needs to be paid back, and if the interest is added to the cost of the items bought during black Friday the cost will probably be far greater than what the item cost before black Friday. Consumer spending driven by high levels of debt in South Africa is not sustainable in the long run and at some point the debt has to be paid back. And this will place a burden on consumer spending going forward, especially if the South African Reserve Bank continues to raise interest rates.
18 November 2018: The contribution of various wholesaler types to total wholesale trade
In today's update we take a look at the various wholesale types contribution to total wholesale trade sales. So which type of wholesaler has the highest turnover in South Africa? The pie chart below takes a look at the revenue of each of the big wholesaler types in South Africa, as published by Statistics South Africa in their wholesale trade sales release.
The summary shows the relative contribution of the various wholesale trade types to total whole sale trade sales for the month of September 2018:
Total wholesale trade sales, adjusted for inflation and seasonal effects, for the month of September 2018 amounted to R162 billion. The summary below shows the Rand value of trade per wholesaler type (not adjusted for inflation or seasonal effects). So basically as reported in September 2010 from the wholesalers.
- Wholesale trade on a fee or contract basis: 3.4%
- Wholesale trade in agricultural raw materials and livestock: 6.0%
- Wholesale trade in food beverages and tobacco: 13.2%
- Wholesale trade in textiles clothing and footware: 2.5%
- Wholesale trade in other household goods except precious stones: 13.7%
- Wholesale trade in precious stones, jewellery and silverware: 4.3%
- Wholesale trade in solid, liquid and gaseous fuels and related products: 24.2%
- Wholesale trade in metals and metal ores: 2.4%
- Wholesale trade in construction and building materials: 4.7%
- Wholesale trade in other intermediate products, waste and scrap: 5.1%
- Wholesale trade in machinery, equipment and supplies: 12.7%
- Wholesale trade in other goods: 7.7%
Total wholesale trade sales, adjusted for inflation and seasonal effects, for the month of September 2018 amounted to R162 billion. The summary below shows the Rand value of trade per wholesaler type (not adjusted for inflation or seasonal effects). So basically as reported in September 2010 from the wholesalers.
- Wholesale trade on a fee or contract basis: R6 795 000 000
- Wholesale trade in agricultural raw materials and livestock: R11 997 000 000
- Wholesale trade in food beverages and tobacco: R26 417 000 000
- Wholesale trade in textiles clothing and footware: R5 070 000 000
- Wholesale trade in other household goods except precious stones: R27 322 000 000
- Wholesale trade in precious stones, jewellery and silverware: R8 596 000 000
- Wholesale trade in solid, liquid and gaseous fuels and related products: R48 367 000 000
- Wholesale trade in metals and metal ores: R4 823 000
- Wholesale trade in construction and building materials: R9 494 000 000
- Wholesale trade in other intermediate products, waste and scrap: R10 265 000 000
- Wholesale trade in machinery, equipment and supplies: R25 372 000 000
- Wholesale trade in other goods: R15 442 000