, Introduction: South Africa’s Clothing Retail Industry
Industry Trends & Market Dynamics
- Online retail projected to surpass R130 billion in 2025; clothing leads e-commerce
growth (35% in 2024, 38% in 2025).
- International competitors (Shein & Temu) hold 3.6% of total retail, 37% of e-commerce
clothing sales, challenging local retailers.
- Consumers increasingly prefer sustainable, gender-neutral, and Afrocentric fashion; social
media and influencers drive trends.
Tax & Regulatory Changes
- VAT increased to 15.5% in May 2025; proposed 16% increase scrapped after
political/legal pushback.
- SARS phased out low customs value consignment relief (from September 2024),
introducing VAT on all imports to protect local retailers.
Retailer Strategies & Market Movements
- Retailers expanding physical presence despite economic challenges (e.g., Pepkor acquired
462 stores via Legit, Swagga, Style).
- Foschini Group (TFG) reported 4.6% annual earnings growth, supported by African sales,
store expansion, and UK acquisition (White Stuff).
Economic Indicators
- Retail sales rose 2.3% year-on-year in August 2025, slowing from July’s 5.7% growth.
- Business Confidence Index increased to 121.1 in September 2025, showing recovery aided
by tourism, exports, and precious metals.
Industry Trends & Market Dynamics
- Online retail projected to surpass R130 billion in 2025; clothing leads e-commerce
growth (35% in 2024, 38% in 2025).
- International competitors (Shein & Temu) hold 3.6% of total retail, 37% of e-commerce
clothing sales, challenging local retailers.
- Consumers increasingly prefer sustainable, gender-neutral, and Afrocentric fashion; social
media and influencers drive trends.
Tax & Regulatory Changes
- VAT increased to 15.5% in May 2025; proposed 16% increase scrapped after
political/legal pushback.
- SARS phased out low customs value consignment relief (from September 2024),
introducing VAT on all imports to protect local retailers.
Retailer Strategies & Market Movements
- Retailers expanding physical presence despite economic challenges (e.g., Pepkor acquired
462 stores via Legit, Swagga, Style).
- Foschini Group (TFG) reported 4.6% annual earnings growth, supported by African sales,
store expansion, and UK acquisition (White Stuff).
Economic Indicators
- Retail sales rose 2.3% year-on-year in August 2025, slowing from July’s 5.7% growth.
- Business Confidence Index increased to 121.1 in September 2025, showing recovery aided
by tourism, exports, and precious metals.
