Online Sales Records 30% Growth in South Africa in 2022

Online shopping in South Africa will reach R55-billion in 2022, a 30% increase from the R42.3-billion the previous year, according to new research.

World Wide Worx, which conducted the study, found that 2022’s strong growth – which came on top a 40% improvement in 2021 – was driven by the post-pandemic boom in demand for home deliveries.

The World Wide Worx findings are compiled from accumulated figures and projections from listed companies, interviews with unlisted online retailers, and data on card transactions.

Stellar performers included Checkers Sixty60, which grew turnover by 150% from July 2021 to July 2022

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“One can call this the pandemic dividend,” MD Arthur Goldstuck said in a statement on Thursday. Goldstuck, who was principal analyst on the research project, said the 2020 boom in home deliveries has continued for the past two years, as “retailers compete aggressively in every area of online shopping”.

Online sales were again boosted by Black Friday, with the banks reporting huge increases in card and online spending.

“Stellar performers included Checkers Sixty60, which grew turnover by 150% from July 2021 to July 2022, Mr Price, which reported online retail sales up 48.2% for the year to April 2022, and Pick n Pay, which reported in its annual results for the year to the end of February 2022 that online sales had seen annual compound growth of 72.5% over the previous two years,” Goldstuck said.

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World Wide Worx, which conducted the research with support from Mastercard, expects that for 2022, online retail will make up 4.7% of total retail in South Africa, up from 4% in 2021 and 2.8% in 2020. Goldstuck said he expects the figure will exceed 5% in 2023.  

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Online Shopping Booms in South Africa Thanks to Covid-19

Suzanne Morel, Country Manager, Mastercard, South Africa.

A new report from Mastercard Corporation shows that South Africans are spending 68% more online now than they were prior to the pandemic, showing that essential items have seen highest surge online with the majority (81%) of consumers saying they purchased data, and over half saying they bought clothing (56%) and groceries (54%) online since the pandemic started.

Suzanne Morel, Country Manager, Mastercard, South Africa.
Suzanne Morel, Country Manager, Mastercard, South Africa.

The research points that the times we are living in have also made consumers more generous with nearly a quarter (23%) saying they have donated more to charity than pre-lockdown. Consumers are supporting their favourite local small businesses, with 63% of respondents saying that they are making a conscious effort to shop online at these stores. With fewer opportunities to browse in the stores or on the high-street, social media has emerged as the main platform for finding the most attractive products and offers, with 64% and 41% of respondents saying they had discovered new sellers through Facebook and Instagram respectively.

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Price is a key factor for South African shoppers, with 78% saying this is the most important consideration that guides their online purchasing decision. In fact, 75% of typical in-store bargain hunters spend hours searching different sites to find the best deals and nearly half (49%) of self-confessed window shoppers say they regularly create wish lists but don’t always buy. While adapting to the ‘next normal’, people have been changing the way they consume entertainment and learn new skills.

In fact, 68% of South African consumers said they used the time during the pandemic as a positive learning experience. Two thirds (76%) of respondents learnt to bank online, while more than a half learnt to cook through online tutorials (55%), manage their health and get their medicines online (52%) or trained themselves in Do-It-Yourself (51%). Around 39% of respondents enrolled in an online university or educational course, 29% learnt to dance and 28% learnt to do make-up.

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“We have all been adjusting to a new way of living and are understandably shopping more online, though it’s not just for essentials like data, clothing and groceries but for virtual experiences ranging from films to cooking classes. What’s more, this trend appears to be here to stay as 71% of respondents say they will continue to shop online post-pandemic,” says Suzanne Morel, Country Manager at Mastercard South Africa.

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“Now more than ever people need access to the digital economy and all of us at Mastercard are constantly working to make the online shopping experience more inclusive, simple, seamless and secure for everyone, whether you’re shopping for essentials or experiences.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry