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SA online retail races to R159bn as growth accelerates

Online sales are forecast to add R29 billion to turnover in 2026, as convenience, payments and stronger digital engagement drive consumer spending.

SA online retail races to R159bn as growth accelerates

South Africa's online retail sector is projected to generate R159 billion in sales by the end of 2026, according to a study by World Wide Worx, Mastercard, Peach Payments and Ask Africa. E-commerce sales surpassed 10% of national retail turnover in June 2026, contributing roughly R29 billion to overall turnover. Arthur Goldstuck, MD of World Wide Worx and principal analyst on the research, identified convenience as the primary driver of online sales, noting that consumers are frequently shopping across more categories as online retail becomes more user-friendly.

Retailers are integrating fulfilment, loyalty, marketplaces and advertising into their operations, and secure payments, smartphone-friendly checkout and reliable delivery are encouraging consumers to shift more purchases online. Takealot remains the most-used online shopping platform, with 35.3% of online shoppers using it. Other popular platforms include Shein (21.5%) and Checkers Sixty60 (15%).

Subscriptions and delivery economics are becoming important competitive factors. Amazon Prime, available in South Africa, costs R59 per month, while Shoprite's Xtra Savings Plus offers unlimited free deliveries for R99 per month. Takealot MORE, which costs R39 per month for the standard plan and R99 per month for the premium plan, accounts for more than 25% of Takealot Group's gross merchandise value.

Pick n Pay's online operation was profitable for two consecutive years, with online turnover increasing by 32.7%. The report highlights a shift from growth to profitability in the industry, with retailers being judged on the economics of their online operations rather than simply turnover growth.

Written by urgent.news from ITWeb's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at itweb.co.za →

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